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DRAFT BUDGETARY ASSESSMENT (COM(2025)0188 – C100070/2025 – 2025/0103(COD))

On the proposal for a regulation of the European Parliament and of the Council amending Regulations (EU) 2021/694, (EU) 2021/695, (EU) 2021/697, (EU) 2021/1153, (EU) 2023/1525 and 2024/795, as regards incentivising defence-related investments in the EU budget to implement the ReArm Europe Plan

BUDG-PA-774231

Committee on Budgets · Rapporteur: Christian Ehler

✦ In short · AI summary of this text, generated 4 Sept 2026

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The Committee on Budgets' draft opinion assesses the proposal to amend EU regulations to incentivise defence-related investments under the ReArm Europe Plan. It concludes the proposal is compatible with the EU budget and principles, but criticises the lack of an impact assessment and requests traceable information on transfers.

Committee position. The Committee on Budgets concludes that the proposal is compatible with the EU budget and principles, but recommends improvements such as clear definitions and traceable information, and submits an amendment to include its budgetary assessment in Parliament's mandate.

Key points

  1. Determines that the proposal is compatible with the multiannual financial framework and does not involve any top-up of the EU budget.
  2. Notes that the proposal does not require additional human resources, but doubts this assessment considers high use of cohesion fund transfers.
  3. Deplores the lack of an impact assessment and the absence of estimates on the new strategic sector and increased financing rates.
  4. Welcomes the derogation allowing EIC pilot repayments as internal assigned revenues, but recalls that full EU financing should remain an exception.
  5. Regrets that existing priorities face budgetary pressure and calls for clear definitions of 'defence technologies' and 'dual-use'.
  6. Requests the Commission to provide timely reports on transfers under Article 26 of Regulation (EU) 2021/1060.
  7. Calls on the Commission to maintain consistency in conditionality and prevent circumvention of rule-of-law requirements.
  8. Submits an amendment adding a recital stating that the budgetary assessment forms an integral part of Parliament's mandate.

Who is affected

  • Member States using cohesion funds for defence investments, who may benefit from 30% pre-financing and up to 100% Union financing.
  • The European Innovation Council Fund, whose unused amounts and returns (estimated at EUR 210 million) may be used for the STEP window.

Figures and deadlines

  • 30% pre-financing for cohesion policy funds for the new defence sector.
  • Up to 100% Union financing for investments in the new sector.
  • EUR 210 million estimated unused amounts and returns from the EIC Fund pilot.