Sittings · Document

DRAFT OPINION (2025/2143(INI)) 2025-10-23

On tackling barriers to the single market for defence

Committee on the Internal Market and Consumer Protection · Rapporteur: Kamila Gasiuk-Pihowicz

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AMENDMENTS

The Committee on the Internal Market and Consumer Protection submits the following to the Committee on Security and Defence, as the committee responsible :

Amendment 1

Motion for a resolution

Recital A

Motion for a resolution

Amendment

A. whereas given increased geopolitical threats, in particular due to Russia’s aggression in Europe and the crisis in the Middle East, 90 % of EU citizens rightly expect increased EU cooperation in the area of security and defence to protect them and to defend its interests and values on the global stage8 ;

A. whereas given increased geopolitical threats, in particular due to Russia’s full-scale invasion of Ukraine in 2022 and continuous aggression in Europe as well as the crisis in the Middle East, 90 % of EU citizens rightly expect increased EU cooperation in the area of security and defence to protect them and to defend its interests and values on the global stage8 ;

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8 Eurobarometer, https://europa.eu/eurobarometer/surveys/detail/3572.

Or. en

Amendment 2

Motion for a resolution

Recital A a (new)

Motion for a resolution

Amendment

A a. whereas, following Russia's full-scale invasion of Ukraine in 2022, the Union and its Member States have been subject to multiple attacks carried out by the Russian Federation using hybrid warfare tactics, and whereas the Russian Federation continues to present a serious and immediate military threat to Europe, confirmed most recently by drone and fighter jet incursions into the airspace of several Member States; whereas this deteriorating security situation in the Union's immediate vicinity requires a coherent coordinated approach, especially with regard to the free flow of products and services in the area of security and defence;

Or. en

Amendment 3

Motion for a resolution

Recital A b (new)

Motion for a resolution

Amendment

A b. whereas in 2024, EU Member States collectively allocated EUR 343 billion to defence spending, a budget only exceeded by the United States, and despite having an economy ten times larger than that of the Russian Federation, the EU still continues to face difficulties in translating this spending into enhancing its preparedness for cases of materialised military threats;

Or. en

Amendment 4

Motion for a resolution

Recital B

Motion for a resolution

Amendment

B. whereas decades of defence procurement focused on the national level, industrial fragmentation, regulatory barriers, underinvestment, divergent foreign policy objectives, lack of integrated capability planning and aggregated demand, as well as competition over intellectual property, have prevented a fully integrated single market for defence, thereby incurring significant extra costs for the taxpayer while undermining the EU’s ability to protect the safety of its citizens;

B. whereas decades of defence procurement focused on the national level, industrial fragmentation, regulatory barriers, underinvestment, divergent foreign policy objectives, lack of integrated capability planning and aggregated demand, as well as competition over intellectual property, have prevented a fully integrated single market for defence, weakening the EU's interoperability and thereby undermining the EU’s ability to protect the safety of its citizens, while also incurring significant extra costs for taxpayers;

Or. en

Amendment 5

Motion for a resolution

Recital B a (new)

Motion for a resolution

Amendment

B a. whereas, the lack of harmonisation, underinvestment and persisting regulatory barriers have meant that as of 2024, only 19 of the world's top 100 defence companies were headquartered within the EU, compared to 48 in the United States1a;

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1a EPRS briefing on building a common market for European defence - https://www.europarl.europa.eu/RegData/etudes/BRIE/2025/775924/EPRS_BRI(2025)775924_EN.pdf.

Or. en

Amendment 6

Motion for a resolution

Recital C

Motion for a resolution

Amendment

C. whereas joint defence planning, development, production and procurement in the Union would allow for increased efficiency and effectiveness of public investment and industrial and operational gains, thereby increasing the social and political acceptance of necessary increases in defence investment in times of constrained budgets;

C. whereas joint defence planning, development, production and procurement in the Union would allow economies of scale, increased efficiency and effectiveness of public investment and industrial and operational gains, thereby increasing the social and political acceptance of necessary increases in defence investment in times of constrained budgets and significantly improving the Union's and its Member States' abilities to achieve an adequate level of preparedness to deter the Russian Federation by 2030;

Or. en

Amendment 7

Motion for a resolution

Paragraph 1

Motion for a resolution

Amendment

1. Believes that the dramatic challenges faced by the Union and its Member States require a complete rethinking of the way they cooperate on defence matters; underlines that the EU must fundamentally change its understanding of defence industry production by developing a true single market for defence, as called for in the Letta, Draghi and Niinistö reports;

1. Believes that the dramatic security challenges faced by the Union and its Member States require a complete rethinking of the way they cooperate on defence matters; underlines that the EU must fundamentally change its understanding of defence industry production by developing a fully functioning single market for defence, as called for in the Letta, Draghi and Niinistö reports;

Or. en

Amendment 8

Motion for a resolution

Paragraph 2

Motion for a resolution

Amendment

2. Recalls that enhanced cooperation could lead to enormous efficiency savings of up to 30 % of annual defence spending across the EU, amounting to at least EUR 57 billion annually and significantly boosting the effectiveness of current defence spending; underscores the broader advantages for EU competitiveness, resilience, and strategic sovereignty, promising significant employment opportunities, economic development and technological leadership throughout the EU9 ;

2. Recalls that enhanced cooperation could allow larger production runs, enhance standardisation, improve interoperability as well as lead to enormous efficiency savings of up to 30 % of annual defence spending across the EU, amounting to at least EUR 57 billion annually and significantly boosting the effectiveness of current defence spending; underscores the broader advantages for EU competitiveness, resilience, and strategic sovereignty, promising significant employment opportunities, economic development and technological leadership throughout the EU9;

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9 Ethan Ilzetki, Guns and Growth: The Economic Consequences of Defense Buildups, February 2025.

Or. en

Amendment 9

Motion for a resolution

Paragraph 3

Motion for a resolution

Amendment

3. Stresses that only a true single market for defence products can provide the means required to truly establish and maintain a competitive and resilient European Defence Technological and Industrial Base (EDTIB) of scale; underlines that a true single market for defence products is essential to close the capability gaps and to re-establish deterrence and is hence a necessary cornerstone of a strong, sovereign and competitive Union;

3. Stresses that only a fully functioning single market for defence products can provide the means required to truly establish and maintain a competitive and resilient European Defence Technological and Industrial Base (EDTIB) of scale; underlines that a fully functioning single market for defence products is essential to ramp up industrial production, replenish stocks, close the capability gaps and to re-establish deterrence and is hence a necessary cornerstone of a strong, sovereign and competitive Union;

Or. en

Amendment 10

Motion for a resolution

Paragraph 3 a (new)

Motion for a resolution

Amendment

3 a. Underlines that building a fully functioning single market for defence products and removing the existing barriers is essential for the timely development of key European collaborative defence initiatives such as the Eastern Shield, the European Drone Wall and the Eastern Flank Watch; highlights that simplifying and adapting the EU legal framework is essential to facilitate the flow of goods and services between the participating Member States, as well as actors from across the Union with key expertise in delivering on these objectives; recalls that completing these objectives is paramount to the collective security of the Union as a whole;

Or. en

Amendment 11

Motion for a resolution

Paragraph 4

Motion for a resolution

Amendment

4. Urges Member States and the Commission to act swiftly to create the true single market for defence, acting on both the supply and demand sides; recalls that the aggregating of demand through common procurement and management throughout the life cycle, regulatory simplification, and cross-border industrial integration at EU level are urgently needed to address such barriers and reduce reliance on non-EU countries as outlined in the Letta and Draghi reports;

4. Urges Member States and the Commission to act swiftly to create a fully functioning single market for defence, acting on both the supply and demand sides; recalls that the aggregating of demand through common procurement and management throughout the life cycle, regulatory simplification, and cross-border industrial integration at EU level are urgently needed to address such barriers and gradually reduce reliance on non-EU countries as outlined in the Letta and Draghi reports, while also seizing the opportunities brought by the security and defence partnerships concluded by the Union;

Or. en

Amendment 12

Motion for a resolution

Paragraph 4 a (new)

Motion for a resolution

Amendment

4 a. Underlines that the guiding principle in building a single market for defence needs to be ensuring equal opportunities for all European players; highlights that the EDTIB consists of very diverse actors, in terms of size, nationality and level of engagement in international partnerships; recalls that navigating the current complicated geopolitical context requires making use of all available resources and capabilities, focusing on rapid short-term industrial ramp-up, replenishing stocks, and ensuring the availability of military products that are in critical demand, with a long-term vision for attaining European strategic autonomy; calls on the Commission and the Member States, therefore, to ensure an appropriate level of flexibility in upcoming legislative and non-legislative proposals aimed at developing the internal market for security and defence products, in order to encourage a fair, gradual, and inclusive approach toward attaining these long-term goals;

Or. en

Amendment 13

Motion for a resolution

Paragraph 7

Motion for a resolution

Amendment

7. Believes that the current EU legislative frameworks do not provide conditions for procurement of goods with fast innovation cycles, such as in the area of drone development; expresses concern that the single market for defence is still undermined by the insufficiently harmonised application of its rules by the Member States and by disproportionate use of the exemption provided for under Article 346 TFEU, which hampers the push towards joint EU defence procurement; highlights the need for dedicated support for small and medium-sized enterprises and small mid-caps to facilitate their involvement in the defence industry supply chain, with a view to increasing innovation while building industrial redundancies that increase the Union’s resilience and security of supply;

7. Highlights that the current pace of technological innovation is creating new challenges in the defence market, making it necessary to adopt a new logic of conducting the procurement of defence–related products and services; believes that the current EU legislative frameworks do not provide conditions for procurement of goods with fast innovation cycles, such as in the area of drone development; expresses concern that the single market for defence is still undermined by the insufficiently harmonised application of its rules by the Member States and by disproportionate use of the exemption provided for under Article 346 TFEU, which hampers the push towards joint EU defence procurement; highlights the need for dedicated support for small and medium-sized enterprises and small mid-caps to facilitate their involvement in the defence industry supply chain, with a view to increasing innovation while building industrial redundancies that increase the Union’s resilience and security of supply; welcomes in this regard the Commission’s proposal to include ‘innovation partnerships’ in the updated version of Directive 2009/81/EC on security and defence procurement; underlines, nevertheless, that innovative activities are subject to numerous risks and are long-term activities that cannot be covered by urgent procedures; calls on the Commission to present an updated version of the defence ‘innovation partnerships’ in the upcoming global revision of the Directive, to better adapt this instrument to the specificities of the defence market and the challenging current security context;

Or. en

Amendment 14

Motion for a resolution

Paragraph 8

Motion for a resolution

Amendment

8. Considers that the absence of a harmonised EU export control system continues to generate obstacles to the functioning of a single market for defence through its impact on intra-EU transfers; recalls that defence production today relies heavily on integrated cross-border supply chains, with components sourced from multiple Member States, which, in the event of an export block, creates uncertainty for industry and supply chains;

8. Underlines that rules concerning intra-EU transfers need to be adapted to allow an enhanced cross-border flow of defence-related products and their components within the EU; highlights that provisions concerning EU export controls remain under the competence of Member States; recalls that defence production today relies heavily on integrated cross-border supply chains, with components sourced from multiple Member States, which, in the event of an export block, creates uncertainty for industry and supply chains;

Or. en

Amendment 15

Motion for a resolution

Paragraph 9

Motion for a resolution

Amendment

9. Calls on the Council and the Commission to equip EU defence programmes with adequate funding under the next multiannual financial framework to effectively incentivise the Member States to enter into joint capability development and procurement agreements and their defence industries to engage in closer cross-border cooperation; underlines that collaborative European projects, such as the Eastern Shield, the European Drone Wall and the Eastern Flank Watch, require a timely allocation of appropriate funding in order to become operational in the shortest time possible; highlights the potential of new frameworks, such as the European Defence Projects of Common Interest and Structures for European Armament Programmes, to deliver on those objectives with the assistance of adequate funding;

Or. en

Amendment 16

Motion for a resolution

Paragraph 11

Motion for a resolution

Amendment

11. Calls on Member States to apply a ‘buy European’ approach, which prioritises the common procurement and increased production of defence products from the European Defence Technological and Industrial Base (EDTIB), Ukraine, European Economic Area/European Free Trade Association (EEA/EFTA) countries and, as a close second layer, third countries with which the Union has signed a Security and Defence Partnership, as it would ensure the EDTIB a predictable order volume, drive up private investment in R&D for defence products, and help the EDTIB to deliver innovative defence products in sufficient volumes;

11. Calls on Member States to apply a ‘buy European’ approach, which, while avoiding a protectionist approach, prioritises the common procurement and increased production of defence products from the European Defence Technological and Industrial Base (EDTIB), Ukraine, European Economic Area/European Free Trade Association (EEA/EFTA) countries, as well as products resulting from cooperation with third countries with which the Union has signed a Security and Defence Partnership, as it would ensure the EDTIB a predictable order volume, drive up private investment in R&D for defence products, and help the EDTIB to deliver innovative defence products in sufficient volumes;

Or. en

Amendment 17

Motion for a resolution

Paragraph 12

Motion for a resolution

Amendment

12. Urges the EU and its Member States to treat Ukraine as an integral part of the single market for defence to the utmost extent possible, taking into account the fact that Ukraine’s future lies in the EU and that it would provide benefits for both the EDTIB and for Ukraine’s Defence Technological and Industrial Base;

12. Calls on the EU and its Member States to engage in collaborative security and defence projects with Ukraine and treat it as an integral part of the single market for defence to the utmost extent possible, taking into account the fact that Ukraine’s future lies in the EU and that it would provide benefits for both the EDTIB and for Ukraine’s Defence Technological and Industrial Base;

Or. en

Amendment 18

Motion for a resolution

Paragraph 13

Motion for a resolution

Amendment

13. Believes that the implementation of Directive 2009/81/EC on defence and sensitive security procurement needs to be significantly improved and calls on the Commission to propose an ambitious revision; calls on the Commission to issue a recommendation for an interpretation of Article 346 TFEU in line with the current reality of an interdependent security architecture in the EU; calls on Member States to make use of different contract forms that stipulate for innovation, competition and private capital investments;

13. Welcomes the Commission's proposal to simplify procedures under Directive 2009/81/EC on defence and sensitive security procurement, in response to urgent challenges; highlights, however, that the proposed changes are limited in scope; believes that the Directive's implementation needs to be significantly improved; further calls on the Commission to propose an ambitious revision of the Directive and adapt it to the long-term challenges arising from the current complicated security context; calls on the Commission to issue a recommendation for an interpretation of Article 346 TFEU in line with the current reality of an interdependent security architecture in the EU; calls on Member States to make use of different contract forms that stipulate for innovation, competition and private capital investments;

Or. en

Amendment 19

Motion for a resolution

Paragraph 14

Motion for a resolution

Amendment

14. Underlines the need to simplify and abolish hurdles related to intra-EU transfers, including mutual recognition of criteria and certification and a simplification of prior authorisation requests; calls on the Commission to urgently present proposals to further harmonise intra-EU transfers of defence products, to ensure simplification for the circulation of such products inside the Union, in particular eliminating authorisation requirements for components that are already integrated or are to be integrated into a defence product and cannot be transferred or exported as such; further calls on Member States to work towards that same goal; calls on the EU Member States to agree on new common export control rules for arms and defence goods;

14. Underlines the need to simplify and abolish hurdles related to intra-EU transfers, including mutual recognition of criteria and certification and a simplification of prior authorisation requests; welcomes in this regard the Commission's proposal to simplify Directive 2009/43/EC on intra-EU transfers of defence-related products; calls on the Commission to further harmonise intra-EU transfers of defence products, facilitating the circulation of such products inside the Union, by, in particular, eliminating authorisation requirements for components that are already integrated or are to be integrated into a defence product and cannot be transferred or exported as such; further calls on Member States to work towards that same goal;

Or. en

ANNEX: DECLARATION OF INPUT

Pursuant to Article 8 of Annex I to the Rules of Procedure, the rapporteur for opinion declares that she included in her opinion input on matters pertaining to the subject of the file that she received, in the preparation of the draft opinion , prior to the adoption thereof in committee, from the following interest representatives falling within the scope of the Interinstitutional Agreement on a mandatory transparency register1, or from the following representatives of public authorities of third countries, including their diplomatic missions and embassies:

1. Interest representatives falling within the scope of the Interinstitutional Agreement on a mandatory transparency register

GE Aerospace part of General Electric Company - 4016736872-59

Polska Grupa Zbrojeniowa - 804644243175-65

MBDA - 87688971079-66

DuPont de Nemours International SARL - 3181166932-58

ASD-Eurospace 873508417106-05

The list above is drawn up under the exclusive responsibility of the rapporteur for opinion.

Where natural persons are identified in the list by their name, by their function or by both, the rapporteur for opinion declares that she 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.