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MOTION FOR A EUROPEAN PARLIAMENT RESOLUTION
PA_NonLeg
on European Defence Readiness 2030: assessment of needs
AMENDMENTS
(2025/2142(INI))
The Committee on Economic and Monetary Affairs submits the following to the Committee on Security and Defence, as the committee responsible :
– having regard to the Treaty on the Functioning of the European Union (TFEU),
Amendment 1
– having regard to Title V of the Treaty on European Union, in particular Chapter Two, Section Two thereof on the common security and defence policy,
Motion for a resolution
– having regard to the White Paper for European Defence – Readiness 2030 presented by the Presidency of the European Commission on 19 March 2025, and its five-pillar financing plan, ‘ReArm Europe’,
Citation 3 a (new)
– having regard to the Joint Communication to the European Parliament, the European Council, the Council, the European Economic and Social Committee and the Committee of the Regions of 18 May 2022 on the Defence Investment Gaps Analysis and Way Forward (JOIN(2022)0024),
Motion for a resolution
– having regard to the study by the European Commission published on 11 January 2024 entitled ‘Access to equity financing for European defence SMEs’,
Amendment
– having regard to the Joint Communication to the European Parliament, the Council, the European Economic and Social Committee and the Committee of the Regions of 5 March 2024 entitled ‘A new European Defence Industrial Strategy: Achieving EU readiness through a responsive and resilient European Defence Industry’,
– having regard to the tenth progress report on the implementation of the common set of proposals endorsed by the EU and NATO Councils on 6 December 2016 and 5 December 2017 and published in June 2025,
– having regard to Mario Draghi’s report of 9 September 2024 on the future of European competitiveness (Draghi report),
Amendment 2
– having regard to the European Investment Bank (EIB) Activity Report 2024,
Motion for a resolution
– having regard to the European Parliament report of 30 April 2025 on the proposal for a regulation of the European Parliament and of the Council establishing the European Defence Industry Programme and a framework of measures to ensure the timely availability and supply of defence products (COM(2024)0150 – C10-0005/2024 – 2024/0061(COD)),
Citation 7 a (new)
– having regard to the joint communiqué issued on 6 June 2025 by France, Germany, Spain, Estonia, Luxembourg, the Netherlands and Portugal on the launch of the European ‘Finance Europe’ label,
Motion for a resolution
– having regard to the proposal of the European Commission on the Defence Readiness Omnibus package of 17 June 2025, aimed at simplifying the relevant legal and administrative frameworks to strengthen the EU’s defence readiness,
Amendment
– having regard to the opinions of the Committee on Economic and Monetary Affairs, the Committee on Industry, Research and Energy, and the Committee on Budgets,
– having regard to the report of 17 April 2024 by Enrico Letta entitled ‘Much more than a market’ (Letta report),
– having regard to Rule 55 of its Rules of Procedure,
Amendment 3
– having regard to the report of the Committee on Security and Defence (A10-0000/2025),
Motion for a resolution
A. whereas, according to the European Defence Agency (EDA), after a decline in 2014, Member States’ defence expenditure reached EUR 326 billion in 2024, or 1.9% of their GDP;
Citation 7 b (new)
Motion for a resolution
Amendment
– having regard to the report of 30 October 2024 by Sauli Niinistö entitled ‘Safer Together – Strengthening Europe’s Civilian and Military Preparedness and Readiness’ (Niinistö report),
Amendment 4
Motion for a resolution
Citation 9 a (new)
Motion for a resolution
Amendment
– having regard to the European Parliament resolution of 8 July 2025 on the financial activities of the European Investment Bank – annual report 20241a,
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1a Texts adopted, P10_TA(2025)0145.
Amendment 5
Motion for a resolution
Citation 11 a (new)
Motion for a resolution
Amendment
– having regard to the Commission notice of 23 June 2025 on the application of the sustainable finance framework and the Corporate Sustainability Due Diligence Directive to the defence sector,
Amendment 6
Motion for a resolution
Citation 11 b (new)
Motion for a resolution
Amendment
– having regard to the European Court of Auditors special report 04/2025 of 5 February 2025 entitled ‘EU military mobility – Full speed not reached due to design weaknesses and obstacles en route’,
Amendment 7
Motion for a resolution
Recital A
Motion for a resolution
Amendment
A. whereas, according to the European Defence Agency (EDA), after a decline in 2014, Member States’ defence expenditure reached EUR 326 billion in 2024, or 1.9 % of their GDP;
A. whereas, according to the European Defence Agency (EDA), Member States’ defence expenditure, after a decline in 2014, reached EUR 343 billion in 2024, corresponding to 1.9 % of their GDP, an increase of 19 % compared to 2023, thus constituting the tenth consecutive year of growth and gradually bringing the Union closer to NATO’s former target of 2 % of GDP; whereas, according to the EDA, Member States may exceed the 2 % NATO guideline in 2025;
Amendment 8
Motion for a resolution
Recital B
Motion for a resolution
Amendment
B. whereas the Commission estimates that Member States will need to invest an additional EUR 800 billion in defence by 2030 under the ‘ReArm Europe’ plan, involving an annual increase of 10% in spending to reach around EUR 575 billion in 2030, or 3.15% of combined GDP; whereas, in its proposal for the Multiannual Financial Framework (MFF) 2028-2034, the Commission allocates EUR 131 billion to defence and space, five times more than in the previous period;
B. whereas the Niinistö report emphasises that increasing the available funding for defence cooperation is vital to overcome endemic fragmentation and decades of underinvestment; whereas the Draghi report highlights the need for coordinated European approaches to strategic investment in defence; whereas the Commission is supporting the Member States in their defence investment efforts with up to EUR 800 billion in defence spending until 2030 through different measures under the ‘ReArm Europe’ plan, involving an annual increase of up to 10 % in spending to reach up to EUR 575 billion in 2030, or 3.15 % of combined GDP;
Amendment 9
Motion for a resolution
Recital B a (new)
Motion for a resolution
Amendment
B a. whereas, in its proposal for the multiannual financial framework (MFF) for 2028-2034, the Commission allocates EUR 131 billion to defence and space, five times more than in the previous period, with implications for EU budgetary discipline and the design of financing mechanisms related to defence;
Amendment 10
Motion for a resolution
Recital B b (new)
Motion for a resolution
Amendment
B b. whereas, as of August 2025, 16 Member States have requested the use of national escape clauses and 19 Member States have requested loans under the SAFE instrument1a;
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1a https://defence-industry-space.ec.europa.eu/document/download/704924ae-3aa2-4bd3-9675-e9cf1e5dfb96_en?filename=communication-to-the-college.pdf.
Amendment 11
Motion for a resolution
Recital C
Motion for a resolution
Amendment
C. whereas, according to the EDA, 30% of Member States’ defence expenditure in 2024 was devoted to investment, of which 88.2% was for the acquisition of new equipment and 11.8% for research and development; whereas, under the ‘ReArm Europe’ plan, this increase is expected to generate at least EUR 240 billion in additional investment by 2030;
D. whereas, according to the Commission, 78% of Member States’ defence procurement between February 2022 and June 2023 came from third countries, with the United States accounting for two thirds of this figure, and 70% of the turnover of the European Defence Technological and Industrial Base (EDTIB) depends on European public procurement;
C. whereas, according to the EDA, 31 % of Member States’ defence expenditure in 2024 was devoted to investment, of which 88.2 % was for the acquisition of new equipment and 11.8 % for research and development (R&D); whereas expenditure on the procurement of defence equipment reached EUR 88 billion in 2024, 39 % more than in 2023; whereas, under the ‘ReArm Europe’ plan, this increase is expected to generate at least EUR 240 billion in additional investment by 2030; whereas, according to the EDA, while spending on defence R&D in the Member States was 20 % higher in 2024 than in 2023, reaching EUR 13 billion, ‘defence research & technology’, a subset of R&D, still falls short; whereas expansion of procurement and R&D, including ‘defence research & technology’, is significant as it is expected to mobilise European supply chains, stimulate technological innovation and support industrial growth, thus, strengthening Europe’s strategic autonomy;
E. whereas, according to the Aerospace, Security and Defence Industries Association of Europe (ASD), the EDTIB, which in 2023 accounted for around 580 000 direct jobs, 1.4 million indirect jobs and a turnover of EUR 160 billion (one third of which came from exports), faces a triple challenge: recruitment, procurement and financing;
Amendment 12
Motion for a resolution
Recital F
Motion for a resolution
Amendment
F. whereas, according to a Commission study, SMEs in the EDTIB face greater difficulties than those in other sectors in obtaining credit and equity financing due to: (i) irregular public procurement and payment delays between subcontractors, which reduces cash flow visibility; (ii) the exclusion of defence activities by some investors for image reasons; and (iii) limited exit opportunities for defence assets on European capital markets;
F. whereas small and medium-sized enterprises (SMEs) represent a vital component of the European Defence Technological and Industrial Base (EDTIB), providing innovation, flexibility and specialised expertise; whereas, according to a Commission study, SMEs in the EDTIB face greater difficulties than those in other sectors in obtaining credit and equity financing due to: (i) irregular public procurement and payment delays between subcontractors, which reduces cash flow visibility; (ii) the exclusion of defence activities by some investors for image reasons; and (iii) limited exit opportunities for defence assets on European capital markets; whereas addressing such financing obstacles is essential to give defence-related SMEs fair access to capital markets and private investment, thus, improving competitiveness and improving economic resilience;
Amendment 13
Motion for a resolution
Recital G
Motion for a resolution
Amendment
G. whereas additional financing needs for the EDTIB for the period 2025-2030 are estimated at between at least EUR 30 billion and EUR 40 billion, of which EUR 6 billion to EUR 18 billion will be in equity;
G. whereas additional financing needs for the EDTIB for the period 2025-2030 are estimated at between at least EUR 30 billion and EUR 40 billion, of which EUR 6 billion to EUR 18 billion will need to be financed through equity; whereas this highlights the relevance of the EU’s Savings and Investment Union (SIU) in mobilising long-term private capital and attracting institutional investors;
Amendment 14
Motion for a resolution
Recital H
Motion for a resolution
Amendment
H. whereas the defence sector remains highly fragmented, structured around major buyers and fragile subcontracting chains, which limits the cash flow of small businesses, which are often forced to finance their working capital requirements with long-term resources;
H. whereas the defence sector remains highly fragmented, structured around major buyers and fragile subcontracting chains, and underdeveloped pan-European value chains, which limits the cash flow of small businesses, which are often forced to finance their working capital requirements with long-term resources;
Amendment 15
Motion for a resolution
Recital H a (new)
Motion for a resolution
Amendment
H a. whereas the strengthening of the European Defence Technological and Industrial Base requires a progressive trajectory that values the productive and industrial specificities of the Member States, in order to safeguard investment, employment, and competitiveness, and to avoid excessive imbalances that could undermine the equilibrium of national markets and the internal market;
Amendment 16
Motion for a resolution
Recital I
Motion for a resolution
Amendment
I. whereas the EIB mobilised nearly EUR 1 billion in 2024 to support short-term loans to SMEs and is aiming to mobilise EUR 2 billion in 2025; whereas it has already allocated EUR 13 billion to defence since 2017 and plans to allocate an additional EUR 6 billion by 2027, while expanding its activities to include dual-use projects and developing new financial instruments;
J. whereas in 2023, among the foreign direct investments (FDI) notified under the European FDI screening cooperation mechanism, approximately 39 cases were subject to in-depth review, which particularly affected the defence and aeronautics sectors;
I. whereas the European Investment Bank (EIB) prioritised the security and defence sector, adapted its lending criteria and its internal processes, and created a one-stop shop for financial support on security and defence – the Security and Defence Office; whereas the EIB mobilised nearly EUR 1 billion in 2024 and was aiming to mobilise a record EUR 2 billion in 2025 but has actually already reached EUR 3 billion; whereas it has already allocated EUR 13 billion to defence since 2017 and plans to allocate an additional EUR 6 billion by 2027, while expanding its activities to include dual-use projects and developing new financial instruments; whereas the need to strengthen dual-use cooperation at EU level has been highlighted by the Niinistö report;
K. whereas, despite the establishment of specialised funds in Europe, only around 30 European funds specialising in defence existed in 2024, of which four had assets exceeding EUR 500 million, compared with more than 50 in the United States, including 30 of that size, and this situation leads to a less attractive secondary market, lower valuations during exit transactions and a risk of takeover by foreign investors;
Amendment 17
Providing a stable foundation and long-term vision for private defence investment
Motion for a resolution
Recital J
Motion for a resolution
Amendment
J. whereas in 2023, among the foreign direct investments (FDI) notified under the European FDI screening cooperation mechanism, approximately 39 cases were subject to in-depth review, which particularly affected the defence and aeronautics sectors4 ;
J. whereas in 2023, approximately 39 notified foreign direct investment (FDI) cases underwent an in-depth review under the European FDI screening cooperation mechanism, with the defence and aeronautics sectors being especially affected4;
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4 https://circabc.europa.eu/ui/group/be8b568f-73f3-409c-b4a4-30acfcec5283/library/a27a9d61-a090-4637-99e0-1d2673b7d719/details?download=true
4 https://circabc.europa.eu/ui/group/be8b568f-73f3-409c-b4a4-30acfcec5283/library/a27a9d61-a090-4637-99e0-1d2673b7d719/details?download=true.
Amendment 18
Motion for a resolution
Recital K a (new)
Motion for a resolution
Amendment
K a. whereas there is an urgent need to increase European defence-related investment, in particular to enhance Europe’s resilience and security by supporting the development and deployment of dual-use technologies and capabilities that strengthen the protection of critical infrastructure against hybrid threats, cyberattacks and other risks to societal and economic stability, through the Union budget, while also complementing and stimulating the increasing defence spending of the Member States;
Amendment 19
Motion for a resolution
Subheading 2
Motion for a resolution
Amendment
Supporting and better directing Member States’ public investment in defence
1. Expresses concern that, despite the objectives of the ‘ReArm Europe’ plan, by the end of July 2025 only 10 out of 27 Member States had announced a clear target to increase their defence spending to at least 3% of GDP by 2030; encourages each Member State to publish a detailed strategic vision for its military expenditure until 2030, including its capability targets;
Supporting Member States’ national efforts and public investment in defence
Amendment 20
Motion for a resolution
Paragraph 2
Motion for a resolution
Amendment
2. Welcomes the proposals set out in the ‘ReArm Europe’ plan to offer Member States greater budgetary flexibility, in particular the loan facility under the EUR 150 billion ‘Security Action for Europe’ instrument; regrets, however, that the Commission has based this instrument on Article 122 TFEU, thereby ruling out consultation with Parliament, which prevents monitoring and control of the funds and risks exacerbating disparities between Member States; calls on the Commission to refrain from applying this article to other components of the ‘ReArm Europe’ plan, as well as to other issues related to defence financing;
3. Welcomes the Commission’s proposals to facilitate and speed up defence procurement; Calls for the European preference to be strengthened by raising the eligibility criteria for the ‘ReArm Europe’ plan, in particular by setting a minimum threshold of 70% of the estimated value of the products being financed coming from components from European or associated countries;
2. Welcomes the proposals set out in the ‘ReArm Europe’ plan to offer Member States greater budgetary flexibility, including the ‘Security Action for Europe’ instrument to encourage increased defence spending and strengthen the EDTIB; considers, however, that more needs to be done in order to meet the financing needs identified by the Draghi report, and that massive additional investment efforts will be required to enable the EU to achieve strategic autonomy; stresses that financing should be based on facilitated access to private capital, national contributions, existing budgetary margins, or alternative mechanisms that respect fiscal responsibility, and that eligibility conditions to access such financing protect the security and defence interests of the Union and its Member States; highlights, in this regard, that any involvement of entities that have ultimate beneficial owners from third countries or candidate countries should be in line with the defence capability priorities jointly agreed by Member States within the framework of the Common Foreign and Security Policy (CFSP);
Adapting the Union’s budget and financing tools to meet security challenges and the needs of businesses
Amendment 21
Motion for a resolution
Paragraph 2 a (new)
Motion for a resolution
Amendment
2 a. Regrets the Commission’s frequent application of Article 122 TFEU on matters of common European Union debt, such as the ‘Security Action for Europe’, which ruled out consultation with Parliament, thereby, preventing monitoring and control of the funds and risking exacerbating disparities between Member States; stresses that all defence-related financial instruments and spending programmes, including those under the ‘ReArm Europe’ plan, must remain subject to full budgetary scrutiny by Parliament in line with Article 314 TFEU; insists that the Commission refrain from applying Article 122 TFEU to other components of the ‘ReArm Europe’ plan, as well as in other matters of defence financing;
Amendment 22
Motion for a resolution
Paragraph 2 b (new)
Motion for a resolution
Amendment
2 b. Emphasises the importance of a coordinated European approach that supports investment in common priorities, follows a broader concept of security, which encompasses both defence and resilience-related objectives, and that include the effective mobilisation of national budgets and private capital; underlines that flexibility in the fiscal framework should be applied in a manner consistent with sound public finances and long-term debt sustainability; observes the limited and uneven use of the national escape clause (NEC) and notes that, despite such flexibility, several Member States continue to face constraints in their fiscal capacity to meet the demands and respond effectively to shared priorities and that other Member States have refrained from applying for the NEC out of concern for the financial markets’ reaction; recognises that the NEC is a temporary instrument for country-specific emergencies, while sustained investment planning requires long-term predictability; highlights that predictable fiscal and regulatory conditions are essential to attract private investment and to ensure the efficient use of public resources across the Union; believes that this framework, where appropriate, should be strengthened by EU-level investment instruments and tools designed to minimise the cost for EU taxpayers and maximise efficiency in the provision of European public goods;
Amendment 23
Motion for a resolution
Paragraph 3 a (new)
Motion for a resolution
Amendment
3 a. Stresses that although spending on defence R&D in the EU reached EUR 13 billion in 2024, it still represents a modest share of total expenditure compared to global competitors; calls on the Commission to devote a greater proportion of the European Defence Fund and related instruments to disruptive and dual-use technologies (e.g. AI, cyber, quantum and space technologies), ensuring that results are scalable for operational use; underlines that synergies with civilian innovation programmes such as Horizon Europe and the European Innovation Council should be strengthened to maximise impact and avoid duplication;
Amendment 24
Motion for a resolution
Paragraph 3 b (new)
Motion for a resolution
Amendment
3 b. Calls for the extension of funding opportunities from European funds, including through the Integrated Border Management Fund, to support the engineering preparation of border areas in countries threatened by hybrid activities and conventional armed aggression by third countries, particularly in Member States located in the eastern and Mediterranean parts of the European Union; underlines in this context that the ‘Eastern Shield’ initiative constitutes a flagship project to strengthen the security and resilience of the Union’s eastern border and calls for its adequate financing through Union instruments as a key element of the Union’s overall defence posture;
Amendment 25
Motion for a resolution
Paragraph 4
Motion for a resolution
Amendment
4. Calls on the Commission to consolidate and clarify the ‘defence’ envelope provided for in the 2028-2034 MFF, exploring all options to support Member States’ defence investments without increasing their contributions or taxation, in particular through existing mechanisms;
4. Calls on the Commission to consolidate and clarify the ‘defence’ envelope provided for in the 2028-2034 MFF, exploring all options to support Member States’ defence investments, including strengthening NATO’s eastern border, the Mediterranean and the Black Sea region;
Amendment 26
Motion for a resolution
Paragraph 5
Motion for a resolution
Amendment
5. Regrets that the EIB’s investment policy still excludes ‘arms and munitions’; calls, in the interests of consistency with the ‘ReArm Europe’ plan, for the EIB to strengthen its commitment to the European defence industry; suggests formally extending its mandate to include support for the EDTIB within a specialised subsidiary, backed by Commission guarantees and supported by a network of experts; believes that such a structure would be a more effective solution than the creation of a new ‘defence, security and resilience bank’, as proposed in the resolution on the White Paper on the future of European defence;
5. Recalls that the EIB’s objective is to foster European integration, promote the development of the EU and support EU policies in line with Article 309 TFEU; welcomes the EIB’s proactive approach in stepping up financing for European security and defence; however, notes that its investment policy still excludes ‘arms and munitions’ and that its interventions so far have not yet met the needs and expectations expressed by European defence companies; calls in this respect and for the interests of consistency with the ‘ReArm Europe’ plan, on the EIB to further strengthen its commitment to the European defence industry and to revise its investment guidelines so as to allow financing for legitimate defence procurement projects that are in line with international law and the Union’s security interests; notes that possible reservations towards a further extension of the EIB’s lending policy and eligibility criteria for military equipment, due to a perceived risk of withdrawal by investors endangering the EIB’s financial stability, must be supported by a comprehensive justification given that enhancing the defence readiness of the Union and its Member States is an EU policy priority; calls on the EIB to conduct and provide the European Parliament with a detailed assessment of its investors’ policy towards defence investments and the impact of a possible withdrawal of these investments on the EIB’s financial stability without, where applicable, compromising its confidentiality agreements with its investors;
Amendment 27
Motion for a resolution
Paragraph 5 a (new)
Motion for a resolution
Amendment
5 a. Suggests that the EIB should continuously reflect on and evaluate its role, as well as the scope of eligible investments, in the light of the pressing need to scale up the European defence sector and ensure long-term security and strategic autonomy; warns that any adjustment to the EIB Group’s eligibility criteria or funding to align with new priorities must safeguard the group’s financial position and ensure effective financing of other strategic EU priorities;
Amendment 28
Motion for a resolution
Paragraph 6
Motion for a resolution
Amendment
6. Stresses the importance of improving the accessibility and consistency of European investment support funds for EDTIB companies by adjusting eligibility criteria, simplifying application procedures and harmonising the objectives of work programmes; calls on Member States to strengthen the role of their chambers of commerce and industry in supporting SMEs in the EDTIB in their research and in gaining access to EU funding;
Removing disincentives to private investment in defence
6. Stresses the importance of improving the accessibility and consistency of European investment support funds for EDTIB companies, in particular start-ups and SMEs, by progressively adjusting eligibility criteria with regard to the ambition laid out in the European Defence Industry Strategy, simplifying application procedures, encouraging multi-year block purchases to give industry predictable demand and lower unit costs, and harmonising the objectives of work programmes, with particular consideration given to the specific needs, scale and administrative capacities of SMEs and start-ups; calls on Member States to significantly strengthen the role of their chambers of commerce and industry in supporting start-ups and SMEs in the EDTIB in their research and in gaining access to EU funding;
Simplifying access to short-term finance for EDTIB companies
Amendment 29
Motion for a resolution
Paragraph 6 a (new)
Motion for a resolution
Amendment
6 a. Proposes to develop an instrument to support public and private investment in defence on the basis of guarantees from the EU budget following the example of InvestEU;
Amendment 30
Motion for a resolution
Paragraph 6 b (new)
Motion for a resolution
Amendment
6 b. Underlines the importance of developing comprehensive support frameworks enabling SMEs operating in the defence industry to scale up more rapidly, with particular attention to facilitating access to growth capital, supporting product development, testing and evaluation; recognises the importance of strengthening the capacity of SMEs to evolve into prime contractors by improving their ability to source components, enhance manufacturing engineering and integrate advanced automation in order to ramp up production;
Amendment 31
Motion for a resolution
Paragraph 6 c (new)
Motion for a resolution
Amendment
6 c. Considers banking funds deployed into loans, guarantees and high-quality liquidity portfolios as essential for long term maturities in defence spending that will provide predictability and stability; reiterates that accelerating the completion of the SIU would help to mobilise private capital and improve access to financing;
Amendment 32
Motion for a resolution
Paragraph 7
Motion for a resolution
Amendment
7. Calls on the EU Payment Observatory to carry out a study on compliance with payment deadlines in the EDTIB compared to other branches of industry, and to rank the most rigorous companies in this regard;
8. Calls on the EIB, with the support of Member States, to attain a figure of EUR 4 billion for short-term loans with risk guarantees of up to 50%, and calls for the relaxation and simplification of the EIB’s defence commitment criteria, as well as the extension of eligibility to indirect subcontractors;
deleted
Amendment 33
Motion for a resolution
Paragraph 8
Motion for a resolution
Amendment
8. Calls on the EIB, with the support of Member States, to attain a figure of EUR 4 billion for short-term loans with risk guarantees of up to 50 %, and calls for the relaxation and simplification of the EIB’s defence commitment criteria, as well as the extension of eligibility to indirect subcontractors;
8. Calls on the EIB, with the support of Member States, to attain a figure of EUR 4 billion for short-term loans with risk guarantees of up to 50 %, and calls for the relaxation and simplification of the EIB’s defence commitment criteria, as well as the extension of eligibility to indirect subcontractors, while ensuring that any such financing does not contradict the defence capability priorities jointly agreed by Member States within the framework of CFSP, including good neighbourly relations, to maintain strategic alignment;
Amendment 34
Motion for a resolution
Paragraph 8 a (new)
Motion for a resolution
Amendment
8 a. Calls on the Commission to ensure full legal clarity and certainty for investors, eliminating interpretative ambiguities and ensuring a level playing field for the defence sector;
Amendment 35
Motion for a resolution
Subheading 6
Motion for a resolution
Amendment
Increasing the capacity of private investors to finance defence by ensuring its compatibility with sustainable financing
Increasing the capacity of private investors to finance defence
Amendment 36
Motion for a resolution
Paragraph 9
Motion for a resolution
Amendment
9. Notes that, despite the efforts made since the start of the war in Ukraine, many investors remain reluctant to finance defence due to a strict interpretation of environmental, social and governance (ESG) standards, as well as image risk; calls on financial actors to improve their proficiency in analysing and processing defence-related financing; urges the Commission to step up its information and awareness-raising efforts regarding EDTIB financing;
9. Notes that, despite the efforts made since the start of the war in Ukraine, many investors remain reluctant to finance defence, including due to uncertainties over the application of environmental, social and governance standards and the EDTIB remains discriminated against in the financial markets due to image risk; recalls that many defence technologies are dual-use in nature and thus generate significant spillover benefits for civilian innovation and the broader European economy; stresses the need to address persistent negative perceptions surrounding defence financing, particularly in the banking sector; urges the Commission and the Member States to enhance information and awareness-raising efforts regarding EDTIB financing, so as to help financial actors improve their proficiency in analysing and processing defence-related financing;
Amendment 37
Motion for a resolution
Paragraph 10
Motion for a resolution
Amendment
10. Calls on the Commission and the European Securities and Markets Authority to replace the concept of ‘controversial weapons’ with that of ‘prohibited weapons’, in line with the definition set out in the Annex to Delegated Regulation (EU) 2025/[…], adopted as part of the Defence Readiness Omnibus; stresses that this definition is limited to those weapons expressly prohibited under binding international conventions; calls on private financial actors to restrict their exclusions to this consolidated list and to publish their investment policies; proposes that the inclusion in European financing of actors whose investment policies go beyond this exclusion be reviewed on a case-by-case basis;
11. Calls on the Commission to publicly reaffirm that the EU Green Taxonomy does not prohibit investment in defence; calls for defence activities to be recognised within this taxonomy as contributing to UN Sustainable Development Goal 16 (‘Peace, justice and strong institutions’), as part of the prevention of armed conflict and as a guarantee of peace;
10. Acknowledges the Commission delegated regulation (...) amending delegated Regulation (EU) 2020/1818 as regards the definition of controversial weapons replacing the concept of ‘controversial weapons’ with that of ‘prohibited weapons’ adopted as part of the Defence Readiness Omnibus; highlights that this definition is limited to those weapons expressly prohibited under binding international conventions; welcomes the importance of the legal clarifications in achieving the Union’s goals in defence financing, included in the Defence Readiness Omnibus;
Opening up exit opportunities on financial markets for defence assets by mobilising private capital
Amendment 38
Motion for a resolution
Paragraph 10 a (new)
Motion for a resolution
Amendment
10 a. Recalls that the sustainable finance framework aims at directing capital flows towards sustainable activities while not imposing limitations on the financing of the defence sector as publicly reaffirmed by the Commission; takes note in this regard of the Commission Notice of 17 June 2025 on the application of the sustainable finance framework and the Corporate Sustainability Due Diligence Directive to the defence sector confirming that the EU sustainable finance framework is compatible with investment in the defence sector and underlining that sustainability disclosures apply horizontally across all industries;
Amendment 39
Motion for a resolution
Paragraph 12
Motion for a resolution
Amendment
12. Considers it essential to support a European market of specialised investors offering a continuum of financing (credit, private debt and equity) to companies in the EDTIB at all stages (start-ups, SMEs and mid-cap companies); welcomes the Commission and the EIB’s initiative to establish the Defence Equity Facility, with a budget of EUR 175 million for the period 2024-2027; encourages the EIB to increase this budget to EUR 1 billion in order to better meet the equity needs of the EDTIB and its value chain;
12. Considers it essential to support a European market of specialised investors offering a continuum of financing (credit, private debt and equity) to companies in the EDTIB and in the Ukrainian defence technological and industrial base (DTIB) at all stages (start-ups, SMEs and mid-cap companies); welcomes the Commission and the EIB’s initiative to establish the Defence Equity Facility, with a budget of EUR 175 million for the period 2024-2027; considers this fund entirely insufficient in view of financing needs and calls on the EIB to comply with the wishes of the Member States, as reiterated in Council conclusions, by increasing this budget to EUR 1 billion in order to better meet the equity needs of the EDTIB and its value chain, with particular attention to smaller actors facing the biggest financing gap; encourages the EIB to extend this instrument to the Ukrainian DTIB, as well as to design it so that it fosters partnerships and joint ventures between EDTIB and Ukrainian DTIB companies; underlines that eligibility conditions to access such financing protect the security and defence interests of the Union and its Member States;
Amendment 40
Motion for a resolution
Paragraph 13
Motion for a resolution
Amendment
13. Calls on the Commission to consider relaxing antitrust rules in order to facilitate intra-European consolidation in cases where strategic defence companies are brought under European control; calls, at the same time, on Member States to strengthen their controls on direct investments by foreign actors;
13. Calls on the Commission to consider defence readiness, security of supply, EU strategic autonomy, innovation-enhancing potential and reduction of dependencies on third countries in its competition policy; calls, simultaneously, on Member States to strengthen their controls on direct investments by third-country actors;
Amendment 41
Motion for a resolution
Paragraph 13 a (new)
Motion for a resolution
Amendment
13 a. Highlights the significance of well-functioning capital markets for defence financing; calls on the Commission and Member States to accelerate progress on the Capital Markets Union/SIU agenda, specifically by improving access to equity, venture capital and financing for defence-sector SMEs; underlines that the Capital Markets Union/SIU is instrumental to scaling up defence financing;
Amendment 42
Motion for a resolution
Paragraph 13 b (new)
Motion for a resolution
Amendment
13 b. Stresses the importance of accelerating progress on the completion of the SIU and supporting a deeper, more liquid and integrated EU financial system that channels savings more efficiently into productive investments, such as the EU defence industry; highlights that the EU defence industry needs to substantially increase its capacity to meet the huge rise in demand for military products;
Amendment 43
Motion for a resolution
Paragraph 14
Motion for a resolution
Amendment
14. Welcomes the launch of the ‘Finance Europe’ label; notes that this label, which aims to channel private savings towards long-term investments in Europe’s real economy, promotes the equity financing of companies; encourages the Commission to support this initiative by proposing a European label as part of the Savings and Investment Union;
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14. Welcomes the launch of the ‘Finance Europe’ label; notes that this label, which aims to channel private savings towards investments in Europe’s real economy, promotes the equity financing of companies; encourages the Commission to support this initiative by proposing a European label as part of the SIU, while ensuring it does not create an additional administrative burden;
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Amendment 44
15. Instructs its President to forward this resolution to the Council and the Commission.
Motion for a resolution
EXPLANATORY STATEMENT
Paragraph 14 a (new)
Europe, faced with a resurgence of geopolitical threats, must invest heavily to upgrade its defence system. For thirty years, the European Union has underinvested in its defence, with dire consequences for its military capabilities and industrial base. The number of battle tanks in Europe has fallen from 16 851 in 1992 to 3 383 in 2021 (a drop of 80%). Taking into account the ‘accumulated backlog’, the European Commission estimates that an additional EUR 800 billion will be needed to renew and modernise Europe’s arsenal. Despite increased financial efforts since 2022, the effective build-up of European armed forces remains hampered by divergences in national budget planning, administrative inertia, the fragmentation of markets and the difficulty of pooling industrial efforts.
Motion for a resolution
In order to meet these needs, on 5 March 2025, the President of the European Commission presented her ‘ReArm Europe’ plan. This plan, which is intended to raise an additional EUR 800 billion for EU defence, is based on five proposals, each of which is set out in Chapter 4 (‘Funding options’) of the White Paper on the Future of European Defence.
Amendment
However, the ‘ReArm Europe’ plan focuses mainly on the budgetary facilities that could be granted to Member States to finance their increased defence spending, and does not address the issue of how defence industrial companies can gain access to debt and capital financing. According to a study conducted by the European Commission in January 2024, during the period 2021-2022, two-thirds of defence companies did not seek equity financing, and nearly 50% did not seek debt financing (compared to an average of 6.6% for EU SMEs during the same period). The main reasons identified by the Commission for these difficulties are:
14 a. Welcomes the Commission recommendation on savings and investment accounts (SIAs); highlights that SIAs aim to boost retail participation in EU capital markets, thus contributing to their deepening and allowing for an increase in the EU investor base that would help finance EU strategic priorities, including defence; encourages the Commission to keep supporting this initiative; and calls on the Member States to follow the Commission recommendation on increasing the availability of savings and investment accounts;
1. The length and complexity of procurement procedures and payment delays between main contractors and subcontractors in the defence sector, limiting visibility of market potential and cash flow;
Amendment 45
2. The overly strict and cautious interpretation of ESG criteria, leading banks and investment funds in the EU to adopt exclusion policies;
Motion for a resolution
3. The screening of foreign direct investment in defence assets, combined with a limited market of late-stage investors in the EU, constraining exit opportunities.
Paragraph 14 b (new)
The objectives of this own-initiative report are:
Motion for a resolution
• to enable Parliament to take a position on each of the proposals in the ‘ReArm Europe’ plan;
Amendment
• to add further proposals. To this end, around 40 interviews were conducted between November 2024 and June 2025 with various institutional and private actors in the defence sector to identify the current obstacles to defence financing in Europe and the proposals that could be supported to remove them.
14 b. Welcomes the ongoing work aiming at using frozen Russian assets to finance Ukraine defence efforts, while addressing financial stability and litigation concerns;
ANNEX: DECLARATION OF INPUT
Pursuant to Article 8 of Annex I to the Rules of Procedure, the rapporteur declares that he included in his report input on matters pertaining to the subject of the file that he received, in the preparation of the draft report, from the following interest representatives falling within the scope of the Interinstitutional Agreement on a mandatory transparency register, or from the following representatives of public authorities of third countries, including their diplomatic missions and embassies:
ENTITIES OR PERSONS FROM WHOM THE RAPPORTEUR HAS RECEIVED INPUT
Interest representatives falling within the scope of the Interinstitutional Agreement on a mandatory transparency register
The rapporteur declares under her exclusive responsibility that she did not include in her opinion input from interest representatives falling within the scope of the Interinstitutional Agreement on a mandatory transparency register1, or from representatives of public authorities of third countries, including their diplomatic missions and embassies, to be listed in this Annex pursuant to Article 8 of Annex I to the Rules of Procedure.
Institutional actors:
INFORMATION ON ADOPTION IN COMMITTEE ASKED FOR OPINION
Banque européenne d’investissement (BEI) – M. Grégoire Chauvière Le Drian, directeur du bureau France, et Mme Alice Terracol, directrice de cabinet.
Date adopted
Direction générale de l’armement (DGA) - M. Emmanuel Chiva, délégué général pour l’armement.
5.11.2025
Bpifrance - M. Nicolas Dufourcq, directeur général, M. Pascal Largade, directeur exécutif en charge de l’international, de la stratégie, des études et du développement.
Result of final vote
Defence manufacturers:
+ : 34
Association des industries aérospatiales et de défense de l'Europe (ASD) - M. Burkard Schmitt, directeur défense.
- : 8
Groupement des Industries Françaises de Défense et de Sécurité Terrestre (GICAT) - Général (2S) Jean-Marc Duquesne, délégué général.
0 : 7
Groupement des Industries Françaises Aéronautiques et Spatiales (GIFAS) - M. le général Frédéric Parisot, délégué général, Delphine Miramont, responsable des affaires européennes.
Members present for the final vote
Groupement des Industries de Construction et Activités Navales (GICAN) - M. Philippe Missoffe, délégué général.
Georgios Aftias, Rasmus Andresen, Stephen Nikola Bartulica, Isabel Benjumea Benjumea, Gilles Boyer, Giovanni Crosetto, Fabio De Masi, Siegbert Frank Droese, Marco Falcone, Markus Ferber, Jonás Fernández, Claire Fita, Dirk Gotink, Michalis Hadjipantela, Eero Heinäluoma, Jaroslav Knot, Aurore Lalucq, Rada Laykova, Marlena Maląg, Jorge Martín Frías, Costas Mavrides, Fernando Navarrete Rojas, Denis Nesci, Luděk Niedermayer, Ľudovít Ódor, Nikos Papandreou, Gaetano Pedulla', Kira Marie Peter-Hansen, Sirpa Pietikäinen, Pierre Pimpie, Jaroslava Pokorná Jermanová, Jussi Saramo, Paulius Saudargas, Ralf Seekatz, Irene Tinagli, Pasquale Tridico, Lara Wolters, Stéphanie Yon-Courtin
Financial actors:
Substitutes present for the final vote
Banking sector:
Marc Botenga, Hanna Gronkiewicz-Waltz, Fernand Kartheiser, Arba Kokalari, Morten Løkkegaard, Marco Squarta, Mariateresa Vivaldini
Fédération bancaire européenne - M. Mateusz Marciniak, public affairs advisor.
Members under Rule 216(7) present for the final vote
Deutsche Bank - M. Malte Kilian, Head of EU Government & Public Affairs.
Jaroslav Bžoch, Ana Catarina Mendes, Dan-Ştefan Motreanu, Birgit Sippel
European Associations of Coopérative Banks (EACB), Mme Priscille Szeradzki, présidente.
FINAL VOTE BY ROLL CALL BY THE COMMITTEE ASKED FOR OPINION
Société Générale - M. Eric Allain des Beauvais, responsable du financement des exportations de défense et spatiales, M. Stéphane Giordano, responsable des affaires publiques et président de l’AMAFI (Association française des marchés financiers).
34
Groupe BPCE - M. Benoît de La Chapelle-Bizot, conseiller du président du directoire du Groupe BPCE, directeur des Affaires Publiques.
+
Fédération Bancaire Française - M. François Lefebvre, directeur général adjoint, et M. Benjamin Quatre, responsable des affaires publiques.
ECR
Financial markets:
Bartulica Stephen Nikola, Crosetto Giovanni, Nesci Denis, Squarta Marco, Vivaldini Mariateresa
Association pour les marchés financiers en Europe (AFME) - M. Rémi Kireche, directeur général, Mme. Carolina Cazzarolli, avocate en charge de la finance durable et de la simplification.
PPE
German Investment Funds Association BVI - M. Rudolf Siebel, Managing Director.
Aftias Georgios, Benjumea Benjumea Isabel, Falcone Marco, Ferber Markus, Gotink Dirk, Gronkiewicz-Waltz Hanna, Hadjipantela Michalis, Kokalari Arba, Motreanu Dan-Stefan, Navarrete Rojas Fernando, Niedermayer Ludek, Pietikäinen Sirpa, Saudargas Paulius, Seekatz Ralf
Finance Denmark - Mme Pi Wegefelt, Head of EU Affairs, Investment and Sustainability.
Renew
Fonds d’investissement Défense Angels - M. Guy Gourevitch, président, M. François Mattens, co-fondateur vice-président.
Boyer Gilles, Løkkegaard Morten, Ódor Ludovít, Yon-Courtin Stéphanie
Fonds d’investissement AllStrat - M. Eric Gaillat, associé co-fondateur, M. Rainier Brunet-Guilly, associé co-fondateur, M. Adrien Ramesan, associé co-fondateur.
S&D
Fonds d’investissement Tikehau - M. Grégoire Lucas, directeur des relations stratégiques.
Fernández Jonás, Fita Claire, Heinäluoma Eero, Lalucq Aurore, Mavrides Costas, Mendes Ana Catarina, Papandreou Nikos, Sippel Birgit, Tinagli Irene, Wolters Lara
Fonds d’investissement Weinberg Capital - M. Lionel Mestre, partenaire, responsable du fonds d'investissement Eiréné dédié aux PME et ETI de la défense.
The Left
Fonds d’investissements Sienna Investment Managers - M. Paul de Leusse, président, M. Thibault de Saint Priest, secrétaire général, Mme. Olivia Noirot-Nérin, directrice dette d’entreprises et future directrice du fonds défense Hephaïstos.
Saramo Jussi
Insurers:
8
Generali - M. Fabio Marchetti, Group Head of International Public Affairs and Regulatory Advocacy.
-
Munich RE - M. Gartside, Nicholas, Member of the Board of Management
ESN
Allianz - M. Fabien Wathle, directeur général d’Allianz France, M. Christophe Gauer, directeur des affaires publiques, M. Nicolas Boulet, Chief Investment Officer.
Droese Siegbert Frank, Laykova Rada
France Assureurs - M. Hugues Ribière, responsable des affaires européennes.
NI
AXA - M. Jean-Baptiste Tricot, directeur des investissements du groupe.
De Masi Fabio, Kartheiser Fernand
Matmut - M. Leovic Lecluze, directeur des investissements, M. Nicolas Gomart, directeur général.
The Left
Others:
Botenga Marc, Pedulla' Gaetano
Incubateur HexaBlock, créateur de la plateforme de financement collaboratif d’entreprises de la défense SouvTech Invest - M. Thomas Léger, co-fondateur de SouvTechInvest, M. Pierre-Elie Froissard, co-fondateur et directeur de SouvTech Invest, Mme Nadège Monneron, co-fondatrice de SouvTechInvest, directrice d’HexaBlock.
Verts/ALE
Defacto, société de financement à court terme des entreprises, Mme Charlotte Gounot, présidente fondatrice.
Andresen Rasmus, Peter-Hansen Kira Marie
The list above is drawn up under the exclusive responsibility of the rapporteur.
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Where natural persons are identified in the list by their name, by their function or by both, the rapporteur declares that he has submitted to the natural persons concerned the European Parliament’s Data Protection Notice No 484 (https://www.europarl.europa.eu/data-protect/index.do), which sets out the conditions applicable to the processing of their personal data and the rights linked to that processing.
0
ECR
Malag Marlena
PfE
Bzoch Jaroslav, Knot Jaroslav, Martín Frías Jorge, Pimpie Pierre, Pokorná Jermanová Jaroslava
The Left
Tridico Pasquale
Key:
+ : in favour
- : against
0 : abstentions