In recent years society has, of course, become very dependent on its technologies and infrastructures, be they electricity networks, the Internet, public transport, aviation or telecommunications (to name but a few).
As we’ve witnessed of late, natural or man-made disasters can so easily disrupt basic economic infrastructures, among them energy and information networks.
Moreover, they can also realise major damage to individuals and the environment if they adversely affect particularly sensitive components of the industrial infrastructure, such as chemical or power plants.
Exploitation by terrorists and organised criminals
This dependency is being exploited by terrorists and organised criminals. That being the case, more resilient architectures are needed to protect the critical infrastructures upon which we rely on a daily basis.
Even though technology cannot guarantee 100% security, there is no security without technology. With this understanding comes the realisation that we in Europe need a solid and competitive technology base that’s benchmarked against society’s security requirements.
However, until now the security sector has never been the subject of an industrial policy initiative.
European Commission document sets the tone
The necessity for changing that situation was emphasised by the recent European Commission communication entitled ‘An Integrated Industrial Policy for the Globalisation Era putting Competitiveness and Sustainability Centre Stage’.
That communication states: ‘The EU security industry faces a highly fragmented internal market and a weak industrial base. National regulatory frameworks differ widely, and the market for security products is highly diversified (ranging from cameras to complex scanning systems).’
The statement continues: ‘To provide effective security solutions, manufacturers, systems integrators and service providers have to work closely with clients. It’s essential to develop a fast-track system for approval of priority technologies, to make substantial further progress on harmonisation and standardisation, to consider co-ordinated public procurement and to accelerate research on security technologies, including their dual use.’
Another major particularity when compared to other industrial activities is the societal dimension of security in Europe which is also emphasised by the EC missive (‘All security solutions must be founded on the European values of freedom and justice, and fundamental ethical principles and legal requirements mainstreamed through all security R&D and innovation activities’)
Problem areas that demand attention
The European Commission has identified three main ‘problem areas’ that require action: fragmentation of the EU security markets, the fragile industrial base and the “adequate integration of societal aspects” in security technologies.
Security is a highly sensitive area for national states and, as such, has mostly been dealt with on a national level.
Subsequently, this has led to a distinct lack of harmonisation when it comes to security at an EU level (with inadequately defined regulations, no EU-wide legal framework and a lack of any EU-wide standards in relation to security technologies being the outward manifestation).
In turn, this has led the security industry in Europe to be nationally or even regionally oriented. Only a limited number of larger companies are able to compete on the European stage. For the most part, SMEs don’t possess the means to address markets other than that which exists in their home nation.
That state of affairs tends to weaken competition, leading to inefficiencies and poor cost-effectiveness (both for the industry and its end user base).
It’s a situation that also weakens considerably the competitive edge of EU security on the global scale. That’s particularly true in the face of US competition. In the States, there’s both a large and harmonised internal market as well as an advantageous regulatory framework.
EU security’s industrial base
The present state of affairs has a direct effect on EU security’s industrial base. Even if a so-called ‘throughout mapping’ of the EU’s security industry has yet to be achieved, initial indications clearly show that while there are some European champions at the systems integrator level (ie large companies integrating technologies provided by smaller concerns), security’s industrial base appears quite fragile at the second and third tier levels.
In truth, the financial stability of many SMEs is endangered by reduced access to markets and the distinct lack of a harmonised EU regulatory framework.
Furthermore, the possibility of synergies between basic civil and defence-focused technologies remains largely untapped.
European Commission vice-president Antonio Tajani, who’s responsible for industry and entrepreneurship, said: “The security industry is an integral part of the proper functioning of our society. Therefore, the current fragmented market should be overcome. It weakens the competitiveness of Europe’s security industry and endangers its ability to provide technologies necessary to ensure the security of the European citizens. This needs to be changed.”
The aim of the public consultation (which runs until Sunday 15 May) is to provide the Commission with an overview of the perspectives of the relevant Stakeholders, from public administration through to industry, NGO and citizens.
Major focus of the consultation
The consultation is set to focus on the following aspects:
The consultation document can be found on the Your Voice in Europe website (a dedicated link is provided on the right hand panel of this page)
Note that RISC (the UK Security and Resilience Industry Suppliers’ Council) intends to respond to the consultation in due course.
