Sittings · Document
On the proposal for a regulation of the European Parliament and of the Council on establishing the European Defence Industry Programme and a framework of measures to ensure the timely availability and supply of defence products (‘EDIP’)
Committee on Budgetary Control · Rapporteur: Eero Heinäluoma
SHORT JUSTIFICATION
The rapporteur underlines the urgent need to reinforce Europe’s defence capacities, as demonstrated by Russia’s war of aggression against Ukraine and the subsequent spotlight on critical shortfalls in the EU’s defence preparedness.
The rapporteur considers that the proposed European Defence Industry Programme (EDIP) responds to Member States’ calls for stronger, more coherent defence cooperation. Nonetheless, the rapporteur also stresses that, while a good starting point, this short-term measure must evolve into a longer-term funding solution to address structural weaknesses in the European Defence Technological and Industrial Base (EDTIB), commensurate in size to the challenges posed by the European threat landscape.
Building on the Budgetary Control Committee’s previous work on EDIRPA and on the European Court of Auditors’ (ECA) recent Opinion on the proposal and their and Special report 04/2025 “EU military mobility – Full speed not reached due to design weaknesses and obstacles en route”, the rapporteur underlines three core priorities from a budgetary control standpoint, to ensure that EDIP meets its objectives effectively and transparently.
Firstly, the choice and mix of forms of Union contributions demand rigorous scrutiny. While financing not linked to costs can speed up disbursements, the experience with similar delivery models, such as under the Recovery and Resilience Facility, shows that ambiguous milestones, weak audit trails, and uncertain corrective mechanisms risk undermining accountability. Consequently, EDIP should allow for diverse funding methods, including reimbursements of actual costs and simplified cost options, thereby mitigating risks of overcompensation and ensuring robust ex post verifications.
Secondly, EDIP’s success relies on the clear definition of objectives, milestones, and award criteria in the work programmes. Ensuring that EDIP concentrates on projects best responding to the current European threat landscape and with demonstrable EU added value, such as joint procurement, coordinated military mobility upgrades, and supply chain resilience, will strengthen cost-effectiveness and mitigate fragmentation. The cost-effectiveness of Union funding is likewise ensured by a competitive, fair and open European common market for defence with a level playing field for suppliers across the Union, involving in particular, SMEs, start-ups, small mid-caps and other mid-caps. Equally important is the inclusion of well-defined risk mitigation and anti-corruption provisions, particularly when funding actions in partnership with third countries, such as Ukraine.
Lastly, the protection of the Union’s financial interests must be embedded in every stage of EDIP’s design and implementation. This includes providing OLAF, the EPPO, and the Court of Auditors access to audit documentation and on-site checks. At the same time, dedicated monitoring tools, such as such as a robust Risk Management Plan should help deter fraud and detect irregularities early.
The rapporteur regrets the Commission’s decision to propose EDIP without a full ex ante impact assessment, which remains a critical component of sound financial management. Nonetheless, by incorporating stronger accountability measures, diverse funding mechanisms, and transparent reporting, the rapporteur considers that the Programme can achieve its immediate objectives of enhancing Europe’s defence readiness while laying the groundwork for a sustainable industrial base beyond 2027. The rapporteur considers that the amendments proposed, including these targeted improvements, would enable EDIP to serve effectively as the main vehicle for delivering on the European Defence Industrial Strategy’s overarching aim - a more secure and autonomous Europe.
AMENDMENTS
The Committee on Budgetary Control submits the following to the Committee on Security and Defence and the Committee on Industry, Research and Energy, as the committees responsible:
Amendment 1
Proposal for a regulation
Recital 2
| Text proposed by the Commission | Amendment |
| (2) The long-term deterioration of regional and global threat levels requires a step-change in the scale and speed with which Europe’s defence technological and industrial base (EDTIB) can develop and produce the full spectrum of military capabilities. The return of high-intensity warfare and territorial conflict to Europe has a negative impact on the security of the Union and the Member States and requires a significant increase in the capacity of Member States to reinforce their defence capabilities. | (2) The long-term deterioration of regional and global threat levels requires a step-change in the scale and speed with which Europe’s defence technological and industrial base (EDTIB) can develop and produce the full spectrum of military capabilities. The return of high-intensity warfare and territorial conflict to Europe has a negative impact on the security of the Union and the Member States and requires a significant increase in the capacity of Member States to reinforce their defence capabilities and their financing of defence and security. |
Justification
The Parliament has repeatedly called for EU Member States to increase their defence and security financing to new levels, most recently in its resolution of 12 March 2025 on the white paper on the future of European defence (2025/2565(RSP)).
Amendment 2
Proposal for a regulation
Recital 2 a (new)
| Text proposed by the Commission | Amendment |
| (2a) Similarly, the geopolitical context and the European threat landscape require reinforced efforts for the operationalisation of the Union’s mutual assistance clause, Article 42(7) of the Treaty on European Union (TEU), in order to ensure solidarity among Member States, particularly those whose geographical position leaves them directly exposed to imminent threats and challenges. |
Justification
In line with the Parliament’s call in its resolution of 12 March 2025 on the white paper on the future of European defence (2025/2565(RSP))
Amendment 3
Proposal for a regulation
Recital 5 a (new)
| Text proposed by the Commission | Amendment |
| (5 a) The increasing importance of the European Union in defence matters should be mirrored by an adequate level of democratic scrutiny and oversight to ensure responsible allocation of funds and support from Union citizens. As a consequence, this Regulation should enable a proper level of Parliamentary oversight, from the European Parliament and, where relevant from national parliaments, in particular with a view to protect adherence to European values and standards, budgetary oversight, and due respect of fundamental rights; |
Amendment 4
Proposal for a regulation
Recital 5 a (new)
| Text proposed by the Commission | Amendment |
| (5a) In order to address the European threat landscape and the structural changes required by the European Defence Technological and Industrial Base (EDTIB), the short-term scope of this Regulation should be complemented by a long-term funding strategy beyond the 2021-2027 multiannual financial framework, commensurate in size with the challenges faced by the Union. Such a perspective would align with the European Defence Industrial Strategy (EDIS) objective of increasing defence readiness in the EU by 2030, while allowing for a sustained and stable investment horizon. |
Justification
The amendment reflects the ECA’s observation (Opinion, 15) that a 2-year time horizon (2026–2027) may not be commensurate with the structural, multiannual nature of strengthening the EU’s defence industrial base. Recommends a strategy in view of the next MFF.
Amendment 5
Proposal for a regulation
Recital 6 a (new)
| Text proposed by the Commission | Amendment |
| (6 a) In view of the urgent operational requirements and critical ammunition shortfalls, EDIP shall prioritize actions aimed at increasing the EU’s production capacities, including common procurement schemes and coordinated investment in industrial ramp-up. |
Amendment 6
Proposal for a regulation
Recital 8 a (new)
| Text proposed by the Commission | Amendment |
| (8a) In line with the European Parliament’s repeated calls for robust support to Ukraine, all Member States and NATO allies, and, where relevant, associated countries should collectively and individually commit to supporting Ukraine militarily, with no less than 0.25 percent of their GDP annually. The Programme should facilitate and incentivise these efforts, while ensuring full transparency and accountability. |
Justification
In line with the Parliament’s call in its resolution of 12 March 2025 on the white paper on the future of European defence (2025/2565(RSP)).
Amendment 7
Proposal for a regulation
Recital 14 a (new)
| Text proposed by the Commission | Amendment |
| (14 a) In light of the magnitude of investment needs in defence and the comparatively modest size of the Programme, the mobilisation of private funding for the European defence industry is crucial to meet the challenges posed by the threat environment on the Union. The Programme should therefore be complemented by measures aimed at mobilising private investment in the European defence industry, including through blending instruments and supporting the European Investment Bank’s efforts in the area of security and defence; welcomes, in this regard, the decision of the EIB Board of Directors on 21 March 2025 to expand the Bank’s eligibilities for financing Europe’s security and defence industry and infrastructure, by ensuring that excluded activities are as limited as possible in scope; welcomes, further, the integration of the EIB’s existing EUR 8 billion Strategic European Security Initiative (SESI) into a cross-cutting and permanent public policy goal and the removal of a predefined ceiling for financing in this area. |
Amendment 8
Proposal for a regulation
Recital 19 a (new)
| Text proposed by the Commission | Amendment |
| (19a) Recognising that military mobility is a key enabling factor for European defence, the European Defence Industry Programme (EDIP) should be implemented in coherence with the EU Action Plan on Military Mobility 2.0, relevant provisions of the Connecting Europe Facility, NATO and inter-governmental mobility activities and national mobility programmes. Where appropriate, actions under the Programme should complement dual-use infrastructure projects or other initiatives fostering swift and seamless movement of forces within and beyond the EU. |
Amendment 9
Proposal for a regulation
Recital 19 b (new)
| Text proposed by the Commission | Amendment |
| (19b) Front-loading of funds under other Union instruments such as the military mobility envelopes of the Connecting Europe Facility has highlighted the risk of protracted intervals until the next multiannual financial framework. The Programme should, where possible, complement or fill funding gaps for dual-use infrastructure in strategic regions where projects best respond to the European threat landscape, especially if no calls are foreseen under existing transport programmes during the remainder of the 2021-2027 period. This ensures stable, predictable EU support for critical military mobility needs and helps maintain accumulated expertise among beneficiaries. |
Amendment 10
Proposal for a regulation
Recital 21 a (new)
| Text proposed by the Commission | Amendment |
| (21a) To ensure consistent and transparent use of financing not linked to costs, the Commission should define robust methodologies for setting and verifying milestones and targets, avoiding overcompensation, and ensuring compliance with Union and national rules. In particular, clarity is needed when establishing the cost basis for calculating profits, maximum EU funding rates, and the exclusion of double financing. |
Justification
The amendment addresses ECA’s concerns (Opinion, 26–29) that the Commission should clarify how financing not linked to costs will be implemented, including methodology for profit assessments, cost basis, synergy with other funding.
Amendment 11
Proposal for a regulation
Recital 24
| Text proposed by the Commission | Amendment |
| (24) When assessing proposals submitted by applicants, the Commission should pay particular attention to their contribution to the objectives of the Programme. The proposals should be assessed, in particular, against their contribution to the increase in defence industrial readiness, in particular increasing production capacities and eliminating bottlenecks. They should also be assessed against their contribution to fostering defence industrial resilience, by reference to considerations such as timely availability and supply to all locations, strengthening security of supply throughout the Union in response to identified risks, including in particular to those Member States most exposed to the risk of materialisation of conventional military threats. Assessments should also refer to the contribution to defence industrial cooperation through genuine armament cooperation among Member States, associated countries and Ukraine and the development and the operationalisation of cross-border cooperation of undertakings, in particular, to a significant extent, small and medium-sized enterprises (SMEs) and small middle capitalization companies (small mid-caps) operating in the supply chains concerned. | (24) When assessing proposals submitted by applicants, the Commission should pay particular attention to their contribution to the objectives of the Programme. The proposals should be assessed, in particular, against their contribution to the increase in defence industrial readiness, in particular increasing production capacities and eliminating bottlenecks. They should also be assessed against their contribution to fostering defence industrial resilience, by reference to considerations such as timely availability and supply to all locations, strengthening security of supply throughout the Union in response to identified risks, including in particular to those Member States most exposed to the risk of materialisation of conventional military threats. Assessments should also refer to the contribution to defence industrial cooperation through genuine armament cooperation among Member States, associated countries and Ukraine and the development and the operationalisation of cross-border cooperation of undertakings, in particular small and medium-sized enterprises (SMEs) and small middle capitalization companies (small mid-caps) operating in the supply chains concerned. |
Amendment 12
Proposal for a regulation
Recital 27 a (new)
| Text proposed by the Commission | Amendment |
| (27a) In order to ensure that the financial interests of the Union are protected when actions involve Ukrainian entities, it is vital to put in place clear anti-fraud measures, robust internal controls, and external scrutiny. The Commission should cooperate closely with Ukrainian authorities to counter corruption and secure transparency. Where appropriate, the Union may support Ukraine’s administrative capacity to implement adequate control and audit systems. |
Amendment 13
Proposal for a regulation
Recital 27 b (new)
| Text proposed by the Commission | Amendment |
| (27b) The sensitivity and complexity of defence-related projects, as well as the large scale of funding allocated to Ukraine, heighten the risk of fraud and irregularities. A dedicated Risk Management Plan is crucial to safeguard the financial interests of the Union by ensuring thorough risk assessments and robust controls. |
Amendment 14
Proposal for a regulation
Recital 47 a (new)
| Text proposed by the Commission | Amendment |
| (47a) With a view to fostering a competitive, fair and open common European market for defence, the Programme should be complemented by measures aimed at ensuring a level playing field and at opening supply chains for suppliers across the Union, involving in particular SMEs, start-ups and mid-capitalisation companies. |
Amendment 15
Proposal for a regulation
Article 3 – paragraph 1
| Text proposed by the Commission | Amendment |
| 1. Grants may take the form of financing not linked to costs, pursuant to Article 180(3) of Regulation (EU, Euratom) 2018/1046. | 1. Grants may take the form of financing not linked to costs, pursuant to Article 180(3) of Regulation (EU, Euratom) 2018/1046. Where grants are awarded under this Regulation, the Commission may also use simplified cost options or reimbursements of eligible costs actually incurred, duly justifying in the work programmes the choice of delivery model for each grant. |
Justification
This amendment avoids an exclusive reliance on financing not linked to costs by providing for other forms of grants recognized by the Financial Regulation (cost-based, lump sums, unit costs, etc.). It addresses concerns that an excessive reliance on FNLTC can limit transparency, hamper milestone verification, or complicate ex-post audits.
Amendment 16
Proposal for a regulation
Article 3 – paragraph 3 a (new)
| Text proposed by the Commission | Amendment |
| 3a. The Commission shall establish specific accountability and anti-corruption provisions tailored to the Ukrainian context. These provisions shall include, at a minimum, clear eligibility rules and additional award criteria reflecting the objectives of reconstruction, recovery, and alignment with the Union’s acquis; enhanced anti-fraud and anti-corruption checks, including a detailed risk assessment for projects implemented via financing not linked to costs; requirements for monitoring project implementation, verifying end-use, and disclosing subcontractors; and reporting obligations specifying performance and financial data to be collected from beneficiaries under the Ukraine Support Instrument. |
Justification
Addresses the ECA’s recommendation (Opinion, 19, 48) that Ukraine-specific actions face a heightened corruption risk and must include additional accountability arrangements beyond those applied to Member States.
Amendment 17
Proposal for a regulation
Article 4 – paragraph 1 – point a
| Text proposed by the Commission | Amendment |
| (a) initiating and speeding up the adjustment of industry to structural changes, including through the creation and ramp-up of its manufacturing capacities and the opening of the supply chains for cross-border cooperation and effective availability and supply throughout the Union, involving in particular, to a significant extent, SMEs, small mid-caps and other mid-caps; | (a) initiating and speeding up the adjustment of industry to structural changes, including through the creation and ramp-up of its manufacturing capacities, with particular attention to cross-border readiness and enhanced military mobility targets, and ensuring a level playing field, notably through fostering resilient EU-wide supply chains for cross-border cooperation and effective availability and supply throughout the Union, with a significant participation of SMEs, start-ups, and mid-caps across the Union; |
Amendment 18
Proposal for a regulation
Article 4 – paragraph 1 – point b
| Text proposed by the Commission | Amendment |
| (b) incentivising cooperation in defence procurement in order to contribute to solidarity, prevent crowding-out effects, increase the effectiveness of public spending and reduce excessive fragmentation, ultimately leading to an increase in the standardisation of defence systems and greater interoperability. | (b) incentivising cooperation in defence procurement, joint ventures and transfer of technologies in order to contribute to solidarity, prevent crowding-out effects, increase the effectiveness of public spending and reduce excessive fragmentation, ultimately leading to an increase in the standardisation of defence systems and greater interoperability. |
Amendment 19
Proposal for a regulation
Article 4 – paragraph 1 – point b a (new)
| Text proposed by the Commission | Amendment |
| (b a) strengthening the Union’s and Member States’ response to the current European threat landscape, in particular, their exposure to the risk of materialisation of threats to their security and sovereignty, including by facilitating the operationalisation of Article 42(7) of the Treaty on European Union (TEU), the Union's mutual assistance clause, to ensure solidarity among Member States, especially those whose geographical position leaves them directly exposed to imminent threats and challenges; |
Amendment 20
Proposal for a regulation
Article 4 – paragraph 1 – point b b (new)
| Text proposed by the Commission | Amendment |
| (b b) complementing critical dual-use infrastructure projects that contribute to rapid military mobility within and beyond EU territory, in line with the EU Military Mobility Action Plan; |
Amendment 21
Proposal for a regulation
Article 4 – paragraph 1 a (new)
| Text proposed by the Commission | Amendment |
| 1 a. enhance military mobility and dual-use infrastructure in islands and remote regions, particularly sea ports and airports, facilitating enhanced connectivity of geographically isolated Member States. |
Amendment 22
Proposal for a regulation
Article 5 – paragraph 3
| Text proposed by the Commission | Amendment |
| 3. The amount referred to in paragraph 1 and 5 of this Article and the amounts of additional contributions referred to in Article 6 may also be used for technical and administrative assistance for the implementation of the Programme, such as preparatory, monitoring, control, audit and evaluation activities, including price investigations and corporate information technology systems and platforms, and all other technical and administrative assistance or staff-related expenses incurred by the Commission for the management of the Programme/other elements of the subject matter. | 3. The amount referred to in paragraph 1 and 5 of this Article and the amounts of additional contributions referred to in Article 6 may also be used for technical and administrative assistance for the implementation of the Programme, such as preparatory, monitoring, control, audit and evaluation activities, including price investigations and corporate information technology systems and platforms, and all other technical and administrative assistance or staff-related expenses incurred by the Commission for the management of the Programme/other elements of the subject matter. The Commission may provide technical assistance or allocate part of the financial envelope to strengthen the administrative and audit capacity of Ukrainian authorities responsible for implementing, monitoring, controlling and supervising EDIP-funded actions, in particular for the prevention of fraud, corruption, misuse, conflicts of interest, and irregularities. |
Amendment 23
Proposal for a regulation
Article 8 – paragraph 4 a (new)
| Text proposed by the Commission | Amendment |
| 4a. Where the Programme or the Ukraine Support Instrument is implemented in indirect management, the delegation agreements shall include explicit reference to the European Court of Auditors’ right of access to all documentation and premises related to the action. |
Justification
Reflects ECA’s recommendation (Opinion, 33) that delegation agreements uphold the ECA’s audit rights to prevent accountability gaps.
Amendment 24
Proposal for a regulation
Article 10 – paragraph 5 – subparagraph 1
| Text proposed by the Commission | Amendment |
| By way of derogation from paragraph 4, a legal entity established in the Union or in an associated country and controlled by a non-associated third country or a non-associated third-country entity shall be eligible to be a recipient if the acquisition of its control by a non-associated third country or a non-associated third-country entity, has been subject to screening within the meaning of Regulation (EU) 2019/452 of the European Parliament and of the Council and, where necessary, to appropriate mitigation measures, taking into account the objectives set out in Article 4 of this Regulation, or if guarantees approved by the Member State or the associated country in which it is established in accordance with its national procedures are made available to the Commission. | By way of derogation from paragraph 4, a legal entity established in the Union or in an associated country and controlled by a non-associated third country or a non-associated third-country entity shall be eligible to be a recipient if the acquisition of its control by a non-associated third country or a non-associated third-country entity, has been subject to screening within the meaning of Regulation (EU) 2019/452 of the European Parliament and of the Council and, where necessary, to appropriate mitigation measures, taking into account the objectives set out in Article 4 of this Regulation, and if guarantees approved by the Member State or the associated country in which it is established in accordance with its national procedures are made available to the Commission and to the Member State that so requests. |
Amendment 25
Proposal for a regulation
Article 10 – paragraph 5 – subparagraph 2 – point b
| Text proposed by the Commission | Amendment |
| (b) access by a non-associated third country or by a non-associated third-country entity to sensitive information relating to the action is prevented and the employees or other persons involved in the action have national security clearance issued by a Member State or an associated country, where appropriate; | (b) access by a non-associated third country or by a non-associated third-country entity to sensitive information relating to the action is prevented and the employees or other persons involved in the action have national security clearance issued by a Member State or an associated country, where appropriate, in accordance with national laws and regulations; |
Amendment 26
Proposal for a regulation
Article 10 – paragraph 5 – subparagraph 2 – point b a (new)
| Text proposed by the Commission | Amendment |
| (b a) (c) the ownership of intellectual property arising from actions referred to in Article 13(1), point (d), is not subject to restriction by a non-associated third country or a non-associated third-country entity nor transferred to entities established outside the territory of the Member States or of associated countries, without the approval of the Member State or the associated country in which the legal entity is established. Such approval shall not contravene the objectives set out in Article 4. |
Amendment 27
Proposal for a regulation
Article 10 – paragraph 5 – subparagraph 3
| Text proposed by the Commission | Amendment |
| If considered to be appropriate by the Member State or the associated country in which the legal entity is established, additional guarantees may be provided. | If considered to be appropriate by the Member State or the associated country in which the legal entity is established, additional guarantees may be provided. |
| Any Member State may issue duly justified motivated comments to the Member State that provided guarantees if it considers that the security and defence interests of the Union and its Member States are at stake, including respect by the third country, controlling the entity, for the principle of good neighbourly relations. | |
| The Member State responsible for providing guarantees shall take duly into consideration the comments of the Member State issuing comments and shall inform the said Member State and the Commission on its decision to proceed with the guarantees. |
Amendment 28
Proposal for a regulation
Article 10 – paragraph 5 – subparagraph 4
| Text proposed by the Commission | Amendment |
| The Commission shall inform the committee referred to in Article 57 of any legal entity considered to be eligible in accordance with this paragraph. | The Commission shall discuss with concerned Member States how to best address the risks identified. |
| The Commission shall issue a duly justified opinion addressed to the Member States concerned on the participation of the entity. | |
| The Commission shall inform the committee referred to in Article 57 par.3 of any legal entity considered to be eligible in accordance with this paragraph and the relevant guarantees provided by the responsible Member State as well as, the case may be, opinions of the Commission. |
Amendment 29
Proposal for a regulation
Article 11 – paragraph 1
| Text proposed by the Commission | Amendment |
| 1. Only actions implementing the objectives set out in Article 4 shall be eligible for funding. An eligible action shall relate to one or more of the activities referred to in paragraph 2 to 5: | 1. Only actions implementing the objectives set out in Article 4 shall be eligible for funding. The Commission, together with the Member States, shall establish clear priority areas based on the European threat landscape and Member States’ capability gaps, taking into account the urgency of needs identified by the Defence Industrial Readiness Board; the available budget envelope and potential impact at EU level; and the demonstrated additionality delivered by the action. Priority shall be given to actions that address critical capability gaps identified by Member States, foster joint procurement, and demonstrate clear EU added value in terms of interoperability, industrial cooperation, and cross-border supply chain integration. An eligible action shall relate to one or more of the activities referred to in paragraph 2 to 5: |
Amendment 30
Proposal for a regulation
Article 11 – paragraph 2 a (new)
| Text proposed by the Commission | Amendment |
| 2 a. Activities related to a streamline coordination between the EU, member states and other stakeholders, for instance by appointing a single point of contact as appropriate; |
Amendment 31
Proposal for a regulation
Article 11 – paragraph 3 – point a
| Text proposed by the Commission | Amendment |
| (a) the optimisation, expansion, modernisation, upgrading or repurposing of existing, or the establishment of new, production capacities insofar as those components and raw materials are intended or used wholly for the production of defence products, in particular with a view to increasing production capacity or reducing lead production times, including on the basis of the procurement or acquisition of the requisite machine tools and any other necessary input; | (a) the optimisation, expansion, modernisation, upgrading, converting of the current production capacities to defence production capacities, or repurposing of existing, or the establishment of new, production capacities insofar as those components and raw materials are intended or used wholly for the production of defence products, in particular with a view to increasing production capacity or reducing lead production times, including on the basis of the procurement or acquisition of the requisite machine tools and any other necessary input; |
Amendment 32
Proposal for a regulation
Article 11 – paragraph 5 a (new)
| Text proposed by the Commission | Amendment |
| 5 a. The Commission shall ensure that any actions funded under the Programme for industrial readiness also consider the need for rapid logistical deployments, drawing on lessons from the implementation of the EU’s Military Mobility Action Plan 2.0; |
Amendment 33
Proposal for a regulation
Article 12 – paragraph 5 a (new)
| Text proposed by the Commission | Amendment |
| 5 a. Before executing any Union financial contribution under the Programme, the Commission shall consult the designated procurement agent concerning progress on contractual milestones. The procurement agent shall certify that the contractual timeframes, intermediate targets, and relevant obligations have been met, so that the Commission can determine compliance with the conditions for payment. Procurement agents shall also apply a fair procedure in case of new potential common procurement to give the opportunity to participate in competitive tendering and procurement especially for SMEs, and start up, taking into account that in some Member States the majority of the defence equipment industry companies are SMEs. |
Amendment 34
Proposal for a regulation
Article 12 – paragraph 7 – subparagraph 1
| Text proposed by the Commission | Amendment |
| The common procurement contract shall include provisions governing the purchase of additional quantities of defence products for other Member States, associated countries or Ukraine. | The common procurement contract shall include provisions governing the purchase of additional quantities of defence products for other Member States, associated countries or Ukraine or the Republic of Moldova. |
Amendment 35
Proposal for a regulation
Article 12 – paragraph 7 – subparagraph 1 a (new)
| Text proposed by the Commission | Amendment |
| 1a. Before launching a common procurement procedure, the procurement agent shall also inform the associated countries, Ukraine and Moldova about the planned procedure and offer them the possibility of submitting a substantial request to the procurement agent for the purchase of additional quantities of defence products. |
Amendment 36
Proposal for a regulation
Article 15 – paragraph 2 – point c a (new)
| Text proposed by the Commission | Amendment |
| (c a) consult the European Parliament. |
Amendment 37
Proposal for a regulation
Article 15 – paragraph 4
| Text proposed by the Commission | Amendment |
| 4. A European Defence Project of Common Interest shall involve at least four Member States. The European Commission shall be able, where relevant, to participate in the project. | 4. A European Defence Project of Common Interest shall involve at least three Member States. |
Amendment 38
Proposal for a regulation
Article 16 – paragraph 1 – point a
| Text proposed by the Commission | Amendment |
| (a) defence industrial readiness: contribution to competitiveness, increase production capacities, reduce lead times, eliminate bottlenecks thereby increasing interoperability and interchangeability; | (a) defence industrial readiness: contribution to competitiveness, increase production capacities, conversion of the production to defence production capacities, reduce lead times, eliminate bottlenecks thereby increasing interoperability and interchangeability in order to allow it to address the most critical capability gaps identified by the Member States; |
Amendment 39
Proposal for a regulation
Article 16 – paragraph 1 – point c
| Text proposed by the Commission | Amendment |
| (c) defence industrial cooperation: fostering genuine armament cooperation among Member States, associated countries or Ukraine and development and operationalisation of cross-border cooperation between undertakings established in different Member States, associated countries or Ukraine, involving in particular, to a significant extent, SMEs, small mid-caps and other mid-caps as recipients, as subcontractors or as other undertakings in the supply chain; | (c) defence industrial cooperation: fostering genuine armament cooperation among Member States, associated countries or Ukraine and development and operationalisation of cross-border cooperation between undertakings established in different Member States, associated countries or Ukraine, involving in particular, to a significant extent, SMEs, start-ups, small mid-caps and other mid-caps as recipients, as subcontractors or as other undertakings in the supply chain, while ensuring that supply chains are predominantly controlled by EU-based entities and that cooperation strengthens the EU’s industrial sovereignty; |
Amendment 40
Proposal for a regulation
Article 16 – paragraph 1 – point c a (new)
| Text proposed by the Commission | Amendment |
| (c a) the proposal’s contribution to strengthening the Union’s and Member States’ response to the current European threat landscape, in particular their exposure to the risk of materialisation of threats to their security and sovereignty, including by facilitating the operationalisation of Article 42(7) of the Treaty on European Union (TEU), the Union's mutual assistance clause to ensure solidarity among Member States, especially those whose geographical position leaves them directly exposed to imminent threats and challenges; |
Amendment 41
Proposal for a regulation
Article 16 – paragraph 1 – point c b (new)
| Text proposed by the Commission | Amendment |
| (c b) the proposal’s coherence with the principles of a fair and open common European market for defence, allowing for a level playing field among contractors and subcontractors across the Union, together with a fair distribution of EU funding across Member States and opening of supply chains to suppliers from all regions, without undue concentration in larger Member States or among dominant defence undertakings; |
Amendment 42
Proposal for a regulation
Article 16 – paragraph 1 – point c c (new)
| Text proposed by the Commission | Amendment |
| (cc) a demonstration of the additionality delivered by the proposal |
Justification
The additionality delivered by a proposal should be taken into account in the awarding of funding in order to ensure the limited Union resources are spent most effectively, avoiding funding of projects which would advance even without EU financial support.
Amendment 43
Proposal for a regulation
Article 16 – paragraph 1 – point d
| Text proposed by the Commission | Amendment |
| (d) the quality of the implementation plan of the action, in particular measures to respect delivery lead times, including in terms of its processes and monitoring. | (d) the quality of the implementation plan of the action, in particular measures to ramp up production capacities and respect delivery lead times, including in terms of its processes and monitoring. |
Amendment 44
Proposal for a regulation
Article 16 – paragraph 2 a (new)
| Text proposed by the Commission | Amendment |
| 2a. The Commission shall align these criteria with the objectives defined in Articles 4 and 11, ensuring consistency in terminology. “Defence industrial resilience” and “defence industrial cooperation” shall be clearly defined in the work programme, specifying relevant benchmarks for interoperability, standardisation, or cross-border supply-chain integration. |
Justification
The ECA notes (Opinion, 43) that the terms “defence industrial resilience” and “defence industrial cooperation” are not spelled out. This helps avoid subjective interpretations.
Amendment 45
Proposal for a regulation
Article 17 – paragraph 1
| Text proposed by the Commission | Amendment |
| 1. By way of derogation from Article 190 of the Regulation (EU, Euratom) No 2018/1046, the Programme may finance up to 100 % of the eligible costs. However, for activities referred to in Article 11(3) the support from the Programme shall not exceed 35 % of the eligible costs. | 1. By way of derogation from Article 190 of the Regulation (EU, Euratom) No 2018/1046, the Programme may finance up to 100 % of the eligible costs. However, for activities referred to in Article 11(3) the support from the Programme shall not exceed 35 % of the eligible costs. Such derogation shall assess the risk of overcompensation, duplication of funding, and potential distortions to the internal market. |
Amendment 46
Proposal for a regulation
Article 17 – paragraph 2 – point b a (new)
| Text proposed by the Commission | Amendment |
| (b a) the Commission may provide technical assistance or allocate part of the financial envelope to strengthen the administrative and audit capacity of Ukrainian authorities responsible for implementing, monitoring, controlling and supervising EDIP-funded actions, in particular for the prevention of fraud, corruption, misuse, conflicts of interest, and irregularities; |
Amendment 47
Proposal for a regulation
Article 18 – paragraph 2 a (new)
| Text proposed by the Commission | Amendment |
| 2 a. The Commission shall ensure that administrative procedures for funding access are proportionate to company size and project scope, with a simplified application and reporting mechanism for SMEs, start-ups, and mid-caps. |
Amendment 48
Proposal for a regulation
Article 18 – paragraph 2 a (new)
| Text proposed by the Commission | Amendment |
| 2a. Each work programme shall justify the choice of funding instrument(s) (e.g., financing not linked to costs, reimbursement of costs actually incurred, simplified cost options, lump sums). Where the Commission opts for financing not linked to costs, it shall specify the reasons for its suitability in comparison to other forms of financing; demonstrate how the milestones and targets ensure effective budgetary control; and describe the corrective mechanisms in cases of partial achievement of milestones. |
Amendment 49
Proposal for a regulation
Article 23 – paragraph 2
| Text proposed by the Commission | Amendment |
| 2. A SEAP shall use standardised procedures for initiating and managing cooperative defence programmes and shall respect any guidance or templates provided to it by the Commission, including guidelines on project management, funding, and reporting. | 2. A SEAP shall use standardised procedures for initiating and managing cooperative defence programmes and shall respect any guidance or templates provided to it by the Commission, including guidelines on project management, funding, reporting and shall provide information necessary for budgetary control, fraud detection, or auditing by OLAF, the EPPO, the Court of Auditors, or any other competent EU or national authority, in compliance with Union law. |
Amendment 50
Proposal for a regulation
Article 35 – paragraph 3 – subparagraph 2
| Text proposed by the Commission | Amendment |
| When duly justified by the extreme urgency of the situation the Commission may, by way of derogation from Article 172(1) of Regulation (EU, Euratom) 2018/1046, request the delivery of goods or services from the date on which the draft contracts resulting from the procurement carried out for the purposes of this Regulation are sent, which shall be no later than 24 hours as from the award. | When duly justified by the extreme urgency of the situation the Commission may, by way of derogation from Article 172(1) of Regulation (EU, Euratom) 2018/1046, request the delivery of goods or services from the date on which the draft contracts resulting from the procurement carried out for the purposes of this Regulation are sent, which shall be no later than 24 hours as from the award. This derogation shall only apply where the Council has activated the “supply crisis state” (Article 44) or “security-related supply crisis state” (Article 48). The Commission shall justify in writing the urgency, expected duration, and scope of any procurement launched under this derogation, and regularly inform the European Parliament, the Council and the Court of Auditors. |
Justification
ECA (Opinion, 49) flags that broad use of extreme urgency to start deliveries before contract finalization increases litigation risk. This amendment limits it to crisis states.
Amendment 51
Proposal for a regulation
Article 40 – paragraph 1
| Text proposed by the Commission | Amendment |
| 1. The Commission shall carry out a mapping of the Union’s defence supply-chains, in cooperation with the Defence Industrial Readiness Board. | 1. The Commission shall carry out a mapping of the Union’s defence supply-chains, in cooperation with the Defence Industrial Readiness Board and, where relevant, other actors. |
Amendment 52
Proposal for a regulation
Article 40 – paragraph 5 a (new)
| Text proposed by the Commission | Amendment |
| 5 a. The Commission's oversight of grant agreements and procurement contracts under this Regulation shall take into consideration the highly sensitive and strategic nature of the data, ensuring the utmost protection of both the European Union's financial interests and its strategic interests. |
Amendment 53
Proposal for a regulation
Article 40 – paragraph 5 a (new)
| Text proposed by the Commission | Amendment |
| 5a. Grant agreements and procurement contracts concluded under this Regulation shall oblige beneficiaries to cooperate with Commission information requests (including timely data sharing, documentation, and site visits) needed for monitoring, mapping, and evaluating the EDTIB supply chains. |
Justification
ECA (Opinion, 50) advises that the Commission incorporate data requirements in grant agreements to ensure completeness of information.
Amendment 54
Proposal for a regulation
Article 40 – paragraph 7
| Text proposed by the Commission | Amendment |
| 7. The Commission shall inform the Defence Industrial Readiness Board of the aggregate results of the activities carried out pursuant to paragraph 4 on a regular basis. | 7. The Commission shall inform the Defence Industrial Readiness Board and the European Parliament of the aggregate results of the activities carried out pursuant to paragraph 4 on a regular basis. |
Amendment 55
Proposal for a regulation
Article 40 – paragraph 9
| Text proposed by the Commission | Amendment |
| 9. Any information obtained pursuant to this Article shall be treated in compliance with the confidentiality obligations set out in Article 61. | 9. Any information obtained pursuant to this Article shall be treated in compliance with the confidentiality obligations set out in Article 61, whereas such information would be of uttermost sensitivity even if it originated from non-confidential data. |
Amendment 56
Proposal for a regulation
Article 41 – paragraph 1 – subparagraph 1 – introductory part
| Text proposed by the Commission | Amendment |
| The Commission, in consultation with the Defence Industrial Readiness Board, shall carry out regular monitoring of the Union’s manufacturing capacities necessary for the supply of crisis-relevant products, identified in accordance with Article 40, paragraph (6) with a view to identifying factors that may disrupt, compromise or negatively affect the supply of the key defence products they contribute to provide. The monitoring shall consist of the following activities: | The Commission, in consultation with the Defence Industrial Readiness Board and, where relevant, other actors, shall carry out regular monitoring of the Union’s manufacturing capacities necessary for the supply of crisis-relevant products, identified in accordance with Article 40, paragraph (6) with a view to identifying factors that may disrupt, compromise or negatively affect the supply of the key defence products they contribute to provide. The monitoring shall consist of the following activities: |
Amendment 57
Proposal for a regulation
Article 44 – paragraph 1 – point a
| Text proposed by the Commission | Amendment |
| (a) there are serious disruptions in the provision of products, which are not defence products, or serious obstacles to trade in such products within the Union causing their significant shortage; and | (a) there are serious disruptions in the provision of products, which are not necessarily defence products, or serious obstacles to trade in such products within the Union causing their significant shortage; and |
Amendment 58
Proposal for a regulation
Article 45 – paragraph 4
| Text proposed by the Commission | Amendment |
| 4. The Commission shall regularly inform the European Parliament and the Council of any measures taken in accordance with paragraph 1 and explain the reasons for its action. | 4. The Commission shall regularly inform the European Parliament and the Council without delay of any measures taken in accordance with paragraph 1, including, where relevant, the rationale, scope and expected duration of the measures taken, and explain the reasons for its action. |
Amendment 59
Proposal for a regulation
Article 45 – paragraph 5
| Text proposed by the Commission | Amendment |
| 5. The Commission may, after consulting the Defence Industrial Readiness Board, issue guidance on the implementation and the use of the emergency measures. | 5. The Commission may, after consulting the Defence Industrial Readiness Board and informing the European Parliament and the Council, issue guidance on the implementation and the use of the emergency measures. This guidance shall include specific anti-fraud and risk mitigation procedures, periodic verification protocols, and ex-post audit obligations for all parties involved in supply crisis actions. |
Amendment 60
Proposal for a regulation
Article 50 – paragraph 1
| Text proposed by the Commission | Amendment |
| 1. Where the Council activates this measure in accordance with Article 48(4), a Member State, which faces or may face severe difficulties either in the placing of an order or in the execution of a contract for the supply of defence products due to shortages or serious risks of shortages of crisis-relevant products and these difficulties may undermine the security of the Union and of its Member States, may ask the Commission to require an undertaking to accept, or to prioritise certain orders of crisis-relevant products (‘priority rated requests’). These requests may only concern defence products. | 1. Where the Council activates this measure in accordance with Article 48(4), a Member State, which faces or may face severe difficulties either in the placing of an order or in the execution of a contract for the supply of defence products due to shortages or serious risks of shortages of crisis-relevant products and these difficulties may undermine the security of the Union and of its Member States, may ask the Commission to require an undertaking to accept, or to prioritise certain orders of crisis-relevant products (‘priority rated requests’). |
Amendment 61
Proposal for a regulation
Article 52 – paragraph 1 – point a
| Text proposed by the Commission | Amendment |
| (a) activities that aim at rapid adaptation and modification of civilian products for defence applications; | (a) activities that aim at rapid adaptation and modification of civilian products for defence applications, enhancing the dual-use potential of defence innovations; |
Amendment 62
Proposal for a regulation
Article 52 – paragraph 1 – point d a (new)
| Text proposed by the Commission | Amendment |
| (d a) activities that aim at increasing the interoperability of defence products; |
Amendment 63
Proposal for a regulation
Article 52 – paragraph 1 – point d b (new)
| Text proposed by the Commission | Amendment |
| (d b) activities that aim at strengthening the supply chain resilience; |
Amendment 64
Proposal for a regulation
Article 52 – paragraph 1 – point d c (new)
| Text proposed by the Commission | Amendment |
| (d c) activities that aim at digital transformation of defence production, including the use of technologies such as AI, predictive maintenance technologies or digital twins. |
Amendment 65
Proposal for a regulation
Article 57 – paragraph 3 a (new)
| Text proposed by the Commission | Amendment |
| 3a. In coordination with the European Union Military Staff (EUMS) and other relevant bodies, the Board shall maintain a repository of lessons learned from EU military exercises or table-top simulations that test logistical readiness and cross-border movements of defence equipment funded under EDIP. The Board shall propose remedial actions or additional funding measures when repeated bottlenecks are identified. |
Amendment 66
Proposal for a regulation
Article 59 – paragraph 4 a (new)
| Text proposed by the Commission | Amendment |
| 4a. The framework agreement shall be concluded no later than six months after the entry into force of this Regulation, ensuring that disbursements under the Ukraine Support Instrument are covered by robust monitoring and audit arrangements from the outset. |
Justification
Reflects ECA’s concern (Opinion, 55) about lack of a deadline for concluding the Ukraine framework agreement, recommending it be done swiftly to ensure accountability for any early disbursements
Amendment 67
Proposal for a regulation
Article 60 – paragraph 5
| Text proposed by the Commission | Amendment |
| 5. The Commission shall make available approved and accredited existing systems to facilitate the exchange of classified information between the Commission, the High-Representative / Head of Agency, the Member States and associated countries and, where appropriate, with the applicants and the recipients. | 5. The Commission shall make available approved and accredited existing systems to facilitate the exchange of classified information between the Commission, the High-Representative / Head of Agency, the Member States and associated countries, the European Parliament and, where appropriate, with the applicants and the recipients. |
Amendment 68
Proposal for a regulation
Article 61 – paragraph 2
| Text proposed by the Commission | Amendment |
| 2. Member States, the Commission and the High-Representative / Head of Agency shall ensure the protection of trade and business secrets and other sensitive and classified information acquired and generated in application of this Regulation in accordance with Union law and the respective national law. | 2. Member States, the European Parliament, the Commission and the High-Representative / Head of Agency shall ensure the protection of trade and business secrets and other sensitive and classified information acquired and generated in application of this Regulation in accordance with Union law and the respective national law. However, such confidentiality shall not preclude the disclosure of project or contract-related information necessary for budgetary control, fraud detection, or auditing by OLAF, the EPPO, the Court of Auditors, or any other competent EU or national authority, in compliance with Union law. |
Amendment 69
Proposal for a regulation
Article 64 – paragraph 2 – point b
| Text proposed by the Commission | Amendment |
| (b) to regularly check that the financing provided has been used in accordance with the applicable rules, in particular regarding the prevention, detection and correction of fraud, corruption, conflicts of interests and irregularities; | (b) to regularly check and inform OLAF and EPPO about the results that the financing provided has been used in accordance with the applicable rules, in particular regarding the prevention, detection and correction of fraud, corruption, conflicts of interests and irregularities; |
Amendment 70
Proposal for a regulation
Article 64 – paragraph 2 – point c
| Text proposed by the Commission | Amendment |
| (c) to accompany a request for payment under the Programme by a declaration that the funds were used in accordance with the principle of sound financial management and for their intended purpose and managed appropriately in particular in accordance with Ukrainian rules complemented by international standards, on prevention, detection and correction of irregularities, fraud, corruption and conflicts of interests; | (c) to accompany a request for payment under the Programme by a declaration that the funds were used in accordance with the principle of sound financial management and for their intended purpose and managed appropriately in particular in accordance with Ukrainian rules complemented by European Union standards on prevention, detection and correction of irregularities, fraud, corruption and conflicts of interests; |
Amendment 71
Proposal for a regulation
Article 64 – paragraph 2 – point d
| Text proposed by the Commission | Amendment |
| (d) to expressly authorise the Commission, OLAF, the Court of Auditors and, where applicable, EPPO to exert their rights as provided for in Article 129(1) of the Financial Regulation, in application of the principle of proportionality. | (d) to expressly authorise the Commission, OLAF, the Court of Auditors and, where applicable, EPPO to exert their rights as provided for in Article 129(1) of the Financial Regulation, in application of the principle of proportionality, enabling access to beneficiaries’ documentation and on-site controls in Ukraine. |
Amendment 72
Proposal for a regulation
Article 64 – paragraph 2 – point d a (new)
| Text proposed by the Commission | Amendment |
| (da) to identify the Ukrainian authorities involved in implementation, specifying responsibilities and procedures for budget execution; |
Amendment 73
Proposal for a regulation
Article 64 – paragraph 2 – point d b (new)
| Text proposed by the Commission | Amendment |
| (db) to define sanctions and recovery regimes in case of non-compliance or fraud; |
Amendment 74
Proposal for a regulation
Article 64 – paragraph 2 – point d c (new)
| Text proposed by the Commission | Amendment |
| (dc) to require the selection, establishment and systematic use of performance indicators and data sources tailored to the Ukrainian context; |
Amendment 75
Proposal for a regulation
Article 64 – paragraph 2 – point d d (new)
| Text proposed by the Commission | Amendment |
| (dd) to establish a mechanism for the reporting of irregularities to the Commission and mechanisms to ensure the use of the Early Detection and Exclusion System (EDES) when appropriate; |
Amendment 76
Proposal for a regulation
Article 64 – paragraph 2 – point d e (new)
| Text proposed by the Commission | Amendment |
| (de) to establish a detailed roadmap on how Ukraine will put in place robust internal control systems, verification procedures and, where feasible, external audit arrangements to provide a level of assurance equivalent to that required by the Financial Regulation; |
Amendment 77
Proposal for a regulation
Article 64 a (new)
| Text proposed by the Commission | Amendment |
| Article 64a | |
| Risk Management Plan | |
| 1. Within six months from the entry into force of this Regulation, the Commission shall establish a dedicated Risk Management Plan for the implementation of the Programme and the Ukraine Support Instrument. | |
| 2. The Risk Management Plan shall include: | |
| (a) A mapping of high-risk procurement, grant, and financial instrument activities; | |
| (b) A structured method for early detection of potential fraud or irregularities; | |
| (c) Clear procedures for notifying OLAF, the Court of Auditors, the EPPO (where applicable), and national audit bodies, especially for cases involving cross-border elements or high-value contracts; | |
| (d) Provisions for on-site inspections and verifications by or on behalf of the Commission for actions funded under this Regulation; | |
| (e) Specific guidance on verifying end-use of funds, particularly for Ukraine-related actions. | |
| 3. The Commission shall regularly update the Fraud Risk Management Plan based on the results of audits, evaluations, and input from OLAF, the EPPO, the Court of Auditors, and national competent authorities. |
Amendment 78
Proposal for a regulation
Article 65 – paragraph 4 a (new)
| Text proposed by the Commission | Amendment |
| 4 a. The Commission shall monitor continuously the management and implementation of the Programme. In order to enhance transparency, data shall also be made publicly available in an accessible manner on the Commission's website according to the latest update, in particular with information concerning the geographical diversity and category of recipients. |
Amendment 79
Proposal for a regulation
Article 66 – paragraph 1
| Text proposed by the Commission | Amendment |
| 1. By 30 June 2027, the Commission shall draw up a report evaluating the implementation of the measures set out in this Regulation and their results, as well as the opportunity to extend their applicability and provide for their funding, particularly with regard to the evolution of the security context and any persistent risks in relation to the supply of defence products. The evaluation report shall build on consultations of the Member States and key stakeholders. | 1. By 30 June 2027, the Commission shall draw up a report evaluating the implementation of the measures set out in this Regulation and their results, as well as the opportunity to extend their applicability and provide for their funding, particularly with regard to the evolution of the security context and any persistent risks in relation to the supply of defence products. The evaluation report shall build on consultations of the Member States and key stakeholders. The report shall: |
Amendment 80
Proposal for a regulation
Article 66 – paragraph 1 a (new)
| Text proposed by the Commission | Amendment |
| 1 a. detail any instances where financing not linked to costs was used, providing an analysis of milestone fulfilment, partial or full corrections, and lessons learned for the subsequent programming period or subsequent EU programmes; |
Amendment 81
Proposal for a regulation
Article 66 – paragraph 1 b (new)
| Text proposed by the Commission | Amendment |
| 1 b. assess the contribution of measures under this Regulation to the development of a competitive, fair and open common market for defence, notably by ensuring a level playing field and opening supply chains for cross-border cooperation, involving in particular, to a significant extent, SMEs, start-ups, small mid-caps and other mid-caps across the Union; |
Amendment 82
Proposal for a regulation
Article 66 – paragraph 1 c (new)
| Text proposed by the Commission | Amendment |
| 1 c. include a specific section on military mobility synergies and infrastructure bottlenecks addressed through EDIP, assessing to what extent the Programme has supported or accelerated dual-use transport infrastructure relevant to the movement of defence products or personnel; contributed to bridging capability gaps identified in the EU Military Requirements for Military Mobility, including those updated in 2023 and beyond; and coordinated with the Commission’s “gap analysis” for the post-2027 MFF; |
Amendment 83
Proposal for a regulation
Article 66 – paragraph 1 d (new)
| Text proposed by the Commission | Amendment |
| 1 d. include a section on the additionality delivered by the measures under this Regulation; |
Amendment 84
Proposal for a regulation
Article 66 – paragraph 2 a (new)
| Text proposed by the Commission | Amendment |
| 2 a. The evaluation report shall use output, outcome, and result indicators, including standardized measures of interoperability, standardisation, and effective cross-border cooperation. Where relevant, it shall also reflect the EDIS core performance indicators (collaborative procurement ratio, intra-EU defence trade, and share of EU-based supply) with intermediate targets for 2027, and a breakdown by Member State to ensure transparency of results. |
Amendment 85
Proposal for a regulation
Article 66 a (new)
| Text proposed by the Commission | Amendment |
| Article 66a | |
| Single ex post evaluation | |
| By December 2028, the Commission shall carry out a single ex post evaluation covering EDIP, the European Defence Fund (EDF), the European Defence Industrial Development Programme (EDIDP), EDIRPA, and any other relevant EU instruments supporting the EDTIB. This consolidated evaluation shall provide a comparative assessment of effectiveness and identify options for any subsequent multiannual funding proposals. |
Amendment 86
Proposal for a regulation
Article 66 b (new)
| Text proposed by the Commission | Amendment |
| Article 66b | |
| Interim implementation reports | |
| 1. By 30 June 2026 and annually thereafter, the Commission shall submit an interim implementation report to the European Parliament and the Council providing detailed information on the use of the Ukraine Support Instrument. The report shall include data on commitments, disbursements, project outcomes, risk assessments, and any identified or suspected cases of mismanagement or fraud. Where necessary, the Commission shall propose corrective measures, including suspension, reallocation or recovery of funds, to protect the Union’s financial interests. | |
| 2. The interim implementation report shall include a specific assessment of synergies and possible overlaps of EDIP actions with all other relevant Union programmes or instruments, particularly the European Defence Fund (EDF), EDIRPA, ASAP, the Ukraine Facility, and instruments such as TENT or CEF used for dual-use infrastructure. |
ANNEX: ENTITIES OR PERSONS FROM WHOM THE RAPPORTEUR HAS RECEIVED INPUT
Pursuant to Article 8 of Annex I to the Rules of Procedure, the rapporteur for the opinion received input from the following entities or persons in the preparation of the opinion, prior to the adoption thereof in committee:
| Entity and/or person |
| Permanent Representation of Finland to the EU |
The list above is drawn up under the exclusive responsibility of the rapporteur for the opinion.
Where natural persons are identified in the list by their name, by their function or by both, the rapporteur for the opinion declares that he has submitted to the concerned natural persons 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.