Estonia revises offset policy, scraps thresholds

20 August 2013

Estonia has updated its industrial participation and offset guidelines to comply with EU regulations, scrapping its minimum threshold and imposing a case-by-case assessment on all defence purchases.

According to policy guidance provided to IHS Jane's by the Estonian Ministry of Defence (MoD) on 19 August, the previous practice of imposing a mandatory offset obligation for all defence procurements worth more than ESK150 million (around USD13 million at current exchange rates) contravened EU law and has therefore been abolished in favour of case-by-case evaluation.

"Any legal act and/or policy that renders offset requirements obligatory for all or certain defence and/or security public procurement contracts - such as the establishing of a certain threshold - is a violation of the Treaty of Rome," states the policy.

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