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
ITRE-PR-774253
Committee on Industry, Research and Energy · Rapporteur: Rihards Kols
Written by a language model from the full text only; every figure comes from the text. The paragraph links open the paragraph a statement rests on — check the text itself before relying on it.
The draft report proposes amendments to the Commission's regulation to incentivise defence-related investments in the EU budget under the ReArm Europe Plan. It expands STEP to include defence and security technologies, opens the EIC Accelerator to dual-use actions, and allows voluntary reallocation of unspent RRF resources to defence instruments.¶¶¶ It also extends CEF support to dual-use energy infrastructure and counter-mobility infrastructure, raises pre-financing for military mobility actions to 40%, and introduces transparency and financial vetting requirements for defence funding beneficiaries.¶¶¶
Committee position. The rapporteur supports the Commission's proposal but proposes amendments to expand its scope, including adding security technologies, enabling dual-use research, allowing RRF reallocation, and strengthening safeguards.¶¶¶
Key points
- Expands STEP's strategic sectors to include defence and security technologies, with defence technologies defined by Directive 2009/43/EC and European Council conclusions of 6 March 2025.¶
- Opens the EIC Accelerator to actions with potential dual-use applications, including support for non-bankable SMEs and small mid-caps in defence.¶
- Allows restricted calls under Digital Europe to include entities from NATO and EFTA associated countries, subject to Commission risk-based screening.¶
- Amends Horizon Europe to allow restrictions on calls to protect Union security interests, especially for dual-use projects.¶
- Extends CEF transport objectives to include dual-use energy infrastructure and actions to reinforce external borders by impeding adversary movement.¶¶
- Raises the pre-financing rate for military mobility actions under CEF from 30% to 40%.¶
- Allows Member States to voluntarily reallocate unspent RRF resources to Union defence industrial instruments like EDIP, subject to Commission approval.¶
- Introduces mandatory disclosure of beneficial ownership, AML/CFT screening, and a Defence Transparency Register for defence funding beneficiaries.¶
Who is affected
- Defence and security technology companies, including SMEs and start-ups, gain access to EU funding programmes like the EIC Accelerator and STEP.¶¶
- Entities from NATO and EFTA associated countries may participate in restricted calls under Digital Europe, subject to security screening.¶
- Member States can reallocate unspent RRF resources to defence industrial instruments, affecting national recovery plans.¶
- Beneficiaries of defence-related EU funding face new transparency and vetting requirements.¶
Figures and deadlines
- Pre-financing rate raised from 30% to 40% for military mobility actions under CEF.¶
Legal basis: Articles 114, 164, 172, 173, 175(3), 176, 177, 178, 182, 183, 188, 192(1) TFEU¶