5. The Steering Board may meet in specific compositions (such as National Defence Research Directors, National Armaments Directors, National Defence Planners or Policy Directors).

The Commission underlines that cost efficiency of defence spending, the maintenance of a competitive defence and technological industrial base, better access for EU manufactured goods to third country market, ethics and fairness in the arms trade, security of supply, and also the need to respect Member States prerogatives in this sensitive area are all important considerations when defining an EU defence equipment policy.

Questions of trade and production of armaments lie at the intersection of defence and industrial policies.

Cost efficiency of defence spending, the maintenance of a competitive defence and technological industrial base, better access for EU manufactured goods to third markets, ethics and fairness in the arms trade, security of supply, and also the need to respect Member States prerogatives in this sensitive area are all important considerations when defining an EU armaments [5] policy.

In a recent Communication on the defence related industry (see IP/97/983 of 12 November 1997), the Commission had recommended the development of a European armaments policy, a restructuring of the sector and an action plan ranging from proposals for adapted public procurement legislation, a simplified system for intra-community transfers of defence-related goods to a benchmarking exercise in the area of defence industries.

An Independent European Defence Identity Equally, however, there is no reason why the development of a strong European pillar which is firmly rooted in NATO should stifle European ambitions for an independent defence identity : - It makes good sense, for example, to increase levels of practical European cooperation in defence, including, for example, joint training, and even the creation of a European rapid deployment force, without US participation, for operations outside the NATO area - as the British have proposed. - It makes good sense for European Defence Ministers to meet ...[+++] as one manifestation of the Council of Ministers, in order to discuss defence policy, and to give instructions to the Western European Union. - It makes good sense to bring defence trade and production within the disciplines of the Single Market, to reduce the high existing levels of national discrimination and subsidy.