EU sues IBM, Atos and Leonardo over delays in Entry/Exit System rollout
NEWZA Editorial Team•
⚡ Key Financial Takeaways
EU-Lisa filed a lawsuit against IBM, Atos and Leonardo for missing deadlines on the Entry/Exit System (EES) project.
The six‑year contract, awarded in 2019, covers implementation and maintenance of the EES across the 29 Schengen states.
The contractors argued that COVID‑19 and other external factors caused the delays and contested a fine imposed by EU-Lisa in 2021.
EU-Lisa stresses that the legal dispute does not impact the EES’s operational performance at present.
💡 Why It Matters
The EES is a cornerstone of the EU’s effort to modernise border control and manage migration flows. Delays in its rollout could hinder the bloc’s ability to detect overstayers and fraudulent travel documents, potentially affecting security and immigration policy across 29 countries.
EU launches legal action over border‑security software delays The European Union’s border‑management agency, EU‑Lisa, has filed a lawsuit against three major contractors – IBM Belgium, Atos Belgium and Italy’s Leonardo – alleging repeated postponements in delivering the Entry/Exit System (EES). The EES is a digital platform that records the entry and exit of non‑EU nationals at the external borders of the Schengen area, helping to spot visa overstayers, curb identity fraud and reduce illegal migration.
Contract background and the dispute In 2019, EU‑Lisa awarded a core contract for the EES to a consortium comprising IBM, Atos and Leonardo. The six‑year agreement covered both the system’s implementation and its long‑term maintenance across the 29 Schengen countries. By late 2021, the agency had levied a fine on the consortium for missing agreed milestones. In an October 2021 letter, the two Belgian arms of IBM and Atos challenged both the principle of the fine and the calculation method, blaming the COVID‑19 pandemic and other external factors for the setbacks.
Recent developments The legal filing, reported by the Financial Times, states that the dispute centres on delivery delays during the development phase, not on the day‑to‑day operation of the EES, which continues to function. In February 2022, the three firms reportedly pushed back against new deadlines set by EU‑Lisa, further straining the relationship.
Responses and next steps As of the latest update, IBM, Atos, Leonardo and EU‑Lisa have not responded to requests for comment made outside regular business hours. Reuters was unable to independently verify the report.
Potential impact While the lawsuit does not affect the current performance of the EES, it underscores the challenges of coordinating large‑scale IT projects across multiple jurisdictions and the importance of meeting contractual timelines for critical security infrastructure.
🏛️ Background & Context
EU‑Lisa, the agency that oversees large‑scale IT systems for the EU’s border and migration management, has previously overseen projects such as the Schengen Information System. The Entry/Exit System, launched in 2022, is intended to replace manual passport stamping with automated data capture, improving accuracy and speed at border checkpoints.
👁️ What To Watch Next
Watch for court filings that may reveal the scale of any financial penalties, and for any subsequent renegotiation of the contract timeline. The EU may also consider alternative suppliers if the dispute escalates, which could affect future IT procurement strategies for border management.
