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News 23 Jun 2025 · International

European Defense: Commission aims to accelerate investment and reduce regulatory constraints

4 min read

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On June 17, 2025, the European Commission announced a major legislative package known as the “Defence Readiness Omnibus”, amending several regulations and directives applicable to the defense sector. This package aims to strengthen the European defense industrial and technological base by accelerating investments, removing regulatory barriers, and improving coordination between member states, while enhancing the sector’s attractiveness to private investors. 

A concrete application of the “ReArm Europe” plan 

This proposal is part of a broader strategic shift initiated in March 2025 with the launch of the “ReArm Europe” plan, which aims to mobilize nearly €800 billion, alongside the publication of a white paper outlining a vision for European defense by 2030. That document identified several major vulnerabilities facing the Union in light of current threats: fragmented supply chains, critical dependencies, and burdensome regulations. 

In response, the European Council invited the Commission to propose concrete measures to adapt the regulatory framework to the specific needs of the defense sector. The Omnibus package marks the first structural step in this transformation. 

A legislative package built around three priorities: simplify, finance, coordinate 

The text includes a range of measures designed to facilitate industrial defense projects, improve their financing and encourage closer cooperation at the European level, through the following initiatives: 

  • Improved access to EU funding via InvestEU: The package proposes relaxing eligibility criteria for defense projects under the InvestEU program, providing guidance on the compatibility of such investments with sustainable finance principles, and clarifying the definition of controversial weapons under this regulation. 
  • Implementation of a fast-track authorization procedure for certain defense projects: a single authorization will be issued within a maximum of 60 days for defense projects, compared to several years currently in some Member States. National single points of contact will also be established to support industry stakeholders. 
  • Reduction of administrative and procedural burdens under the European Defence Fund (EDF): as the main instrument supporting collaborative R&D in the sector, the EDF will see simplified application procedures, lighter reporting requirements, and an expanded scope to include Ukrainian entities, reflecting a strategic openness. 
  • Facilitated joint procurement of equipment and services: the package proposes raising thresholds for public procurement in security and defense, simplifying procedures, and removing barriers to cross-border transfers of military equipment. These measures aim to encourage Member States to pool their purchases and strengthen collective capabilities. 

A complementary ceasure to the €150 Billion SAFE instrument 

This package complements the adoption, on May 27, of the regulation establishing the SAFE instrument (Supporting Ammunition Production for Europe), also part of the “ReArm Europe” plan. This budgetary tool, with a total envelope of €150 billion, will allow Member States to access long-term loans under favorable conditions. Financial support will be contingent on the submission of national investment plans. 

The main objectives are to: 

  • Stimulate short- and medium-term industrial defense production in Europe; 
  • Reduce critical dependencies and address supply chain gaps; 
  • Strengthen the EU’s strategic autonomy and industrial resilience. 

Strategic convergence with the upcoming EU Space Act 

Although focused on the defense industry, the package also reflects a broader vision of European technological sovereignty and aligns strategically with the forthcoming EU Space Act, currently under development. This legislation is expected to govern the development of strategic European space infrastructure, such as: 

  • Space surveillance systems for early threat detection; 
  • Sovereign and secure communications between state actors; 
  • Navigation services used in military operations. 

This complementarity demonstrates a commitment to cross-sector coherence between defense and space — now inseparable domains for ensuring EU security by 2030. 

Next steps 

The Omnibus package will now be reviewed by the European Parliament and the Council under the ordinary legislative procedure. Its adoption would mark a major step toward building a competitive, responsive, and sovereign European defense economy. 

In summary 

On June 17, 2025, the European Commission presented a new legislative package — the Defence Readiness Omnibus — aimed at strengthening industrial resilience and competitiveness in the EU defense sector. The text proposes concrete measures to accelerate administrative procedures, facilitate access to EU funding, encourage joint procurement, and clarify the applicable legal framework. It aligns with the strategic vision outlined in the 2030 defense white paper and reflects a clear ambition: to equip Europe with the industrial capabilities needed for its security and strategic autonomy. 

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