On Tuesday 17 June, the European Commission presented its ‘omnibus’ defence package, comprising seven legislative acts, with the aim of helping to strengthen defence capabilities and infrastructures by tackling the main obstacles to the production of defence equipment, clarifying legal ambiguities and simplifying processes in order to eliminate unnecessary administrative obstacles and reduce costs.
While the Commission has already proposed a number of instruments to increase defence spending, “money alone however is not enough, if traditional ‘red tape’, which maybe is fit for peacetime, will kill industrial efforts to ramp up production”, European Commissioner for Defence Commissioner, Andrius Kubilius, explained to the media.
The Commission is proposing to introduce a fast-track authorisation system for defence infrastructure projects. While the authorisation procedure in the EU can take several years, the aim is to reduce this time to 60 days. Failure by national authorities to respond in time will mean that the licence in question has been granted. Single points of contact for the defence industry will also be established in Member States. Related disputes should also be treated as a priority.
“This regulation is inspired by the model of the Net-Zero Industry Act”, explained Mr Kubilius.
The European Commission is also tackling a number of European instruments specific to defence. While the Defence Procurement Directive will undergo a complete overhaul in 2026, it is already proposing to double the thresholds for the applicability of the procurement rules to €900,000 for supply and service contracts. This initiative “will exempt a substantial number of smaller contracts from the scope of the Directive, which have an insignificant impact on the internal market”. The EU institution also wants to extend the duration of framework agreements from seven to 10 years, and open them up to other Member States, as proposed in the regulation on the European Defence Industry Programme (EDIP).
With regard to the directive on intra-EU transfers of defence equipment, the Commission intends to increase the use of general transfer licences, simplify transfers by certified companies and avoid delays in the implementation of European Defence Fund (EDF) projects by means of dedicated licences. It also wants to make the system for allocating and financing the EDF fund more flexible and faster.
Improving access to finance. To address the financing difficulties that the defence industry may encounter, the Commission is proposing to improve access to finance by providing guidance on sustainable investment in defence. It thus clarifies the concept of weapons banned in the context of sustainable financing, i.e. weapons banned by international conventions to which the majority of Member States are party.
The eligibility criteria for the InvestEU programme will also be simplified.
“No more controversy with environmental, social and governance criteria: defence is compatible with sustainability criteria, just like any other sector”, welcomed Mr Kubilius, adding that “defence funding can no longer be considered controversial”.
In addition, the Commission’s proposal clarifies the application of the environmental acquis, confirming that “’overriding public interest’, ‘public safety’ or ‘crisis’” include defence readiness.
Legislation on chemical products, in particular REACH, will also have to take account of defence, according to the Commission, for which defence preparedness is based on the use of chemical products for explosives and munitions. “We want to preserve Member States’ freedom to make use of derogations and simplify their use in the field of defence”, explained the Commissioner for Defence.
The Commission also wants to ensure that competition rules do not prevent investment in defence, providing guidance on how mergers and State aid in the sector will be dealt with, and recognising that defence preparedness strengthens the EU’s resilience.
A discussion will also be launched with governments and social partners to determine whether it is necessary to address the Working Time Directive for military personnel.
These proposals will have to be agreed by the Council and the European Parliament.
See the communication: https://aeur.eu/f/hdi ; and the draft legislation on licences: https://aeur.eu/f/hdj ; on the defence industry: https://aeur.eu/f/hdk ; and on transfers and public procurement: https://aeur.eu/f/hdl (Original version in French by Camille-Cerise Gessant)