12. Takes note that, in the long term, the full phase-out of offsets will contribute to a better functioning of the internal market in the European defence sector; calls, therefore, on the Commission to continue to check that Member States are phasing out offsets not duly justified on the basis of Article 346 of the Treaty; views this as indispensable for ensuring the smooth functioning and transparency of the internal market in the European defence sector and a level playing field for suppliers, in particular SMEs;

35. Acknowledges the 2014 Commission roadmap entitled ‘Towards a more competitive and efficient defence and security sector’ and the undertaking made by the Commission in that document to look into how the adverse impact of offsets required by third countries could be mitigated, and what impact offsets have on the internal market and European industry; stresses the importance of the timely implementation of the roadmap and of taking additional measures as necessary; fully supports the Commission’s efforts to provide practical guidance to SMEs using European funds in dual-use projects;

15. Acknowledges the 2014 Commission Roadmap entitled ‘Towards a more competitive and efficient defence and security sector’ and the undertaking made by the Commission in that document to look into how the adverse impact of offsets required by third countries could be mitigated and into the impact offsets have on the internal market and European industry, while stressing the importance of its timely implementation and of taking additional measures as necessary; fully supports the Commission’s efforts to provide practical guidance to SMEs using European funds in dual-use projects;

With respect to offsets on third markets, this dialogue will aim at mitigating possible negative impacts of such offsets on the internal market and the European defence industrial base.

Since the adoption of the defence procurement directive, all Member States have withdrawn or revised their national offset legislation.

60. Notes, however, that offset practices may in certain cases help domestic industries become more efficient and contribute to the development of the European defence industrial base, as well as that intra-Union offset contracts can lead to the creation of jobs and the re-start of national industries; calls on the Member States, the EDA and the Commission to work together towards the gradual phasing-out of offset requirements, while fostering the integration of smaller Member States’ industries into the European defence technologica ...[+++]l and industrial base by other means than offsets;