The legislation informally agreed upon on Wednesday evening between MEPs and the Danish Presidency of the Council will increase funding for defence-related investment by amending existing EU programmes – the Strategic Technologies for Europe Platform (STEP), Horizon Europe, the European Defence Fund (EDF), the Digital Europe programme (DEP) and the Connecting Europe Facility (CEF) – to channel EU funding towards defence.
During negotiations, MEPs advocated for the scope of the measures to include resilience, such as critical infrastructure protection, disaster response, and election integrity. They pushed for the scheme to also improve resilience against cyber threats on critical digital infrastructure.
MEPs also advocated for the legislation to allow for more support for the defence industry of Ukraine, and secured the country’s participation into the European Defence Fund.
The Horizon Europe programme will support civil applications with potential military applications (dual use), while advancing civilian application use. This will be under a targeted exemption under this Multiannual Financial Framework (MFF) and is without prejudice to the outcome of the upcoming negotiations on the next MFF.
“Defence technologies” will be added as a fourth strategic sector under the Strategic Technologies for Europe Platform (STEP). Support should be extended to non-bankable SMEs, including start-ups and small mid-caps.
The legislation will also allow for EU funding for dual-use transport infrastructure under the Connecting Europe Facility (CEF), including military mobility corridors, where the Commission will be able to set conditions relating to the country of origin of the equipment, goods, supplies or service to be used.
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“With this agreement, Parliament and Council have done their job. Now it’s over to the Member States and the Commission to act – the tools are on the table, and the opportunities can be used” lead MEP Rihard Kols (ECR, Latvia) said.
“This mini-omnibus is more than a legislative fix – it’s a clear signal that the EU is finally starting to treat defence investment with the seriousness the times demand. The outcome reflects much of what Parliament fought for, and it sets a precedent. We expect to build on this in the future – with bolder, more far-reaching proposals next time. Parliament has shown it is ready. We shall use that momentum” he added.
Next steps
The informal agreement will now have to be endorsed by both Parliament and Council in order to become law. The Industry, Research and Energy committee will hold its vote on the text on 20th of November, before it is submitted to the whole House before the end of the year.
Background
The European Commission’s proposal, presented on 22 April 2025, aims to boost defence-related investments within the EU budget as part of the ReArm Europe Plan. In response to escalating geopolitical threats, the text seeks to strengthen the European Defence Technological and Industrial Base (EDTIB) with funding coming from existing budgets. It follows the Joint White Paper for European Defence Readiness 2030, aiming to enhance the EU’s strategic autonomy and competitiveness in defence.
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