Sittings · Document

OPINION (COM(2025)0188 – C100070/2025 – 2025/0103(COD)) 2025-08-07

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

Committee on Security and Defence · Rapporteur: Thijs Reuten

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SHORT JUSTIFICATION

The European Union is facing an unprecedented geopolitical situation, marked in particular by the return of high-intensity warfare on European soil due to Russia’s war of aggression against Ukraine.

Furthermore, based on statements by Russian officials, as well as the analysis of European intelligence organisations and NATO, Europe can no longer ignore a looming military threat emanating from Russia against other parts of the European continent.

This underscores the urgent need for the Union and its Member States to shore up our resilience, deterrence and defence against hybrid threats, military threats and potential for conventional military warfare affecting EU Member States.

The Union requires both long term solutions to create a true Defence Union and accompanying internal market, as well as short-term solutions to rapidly ramp up production, innovation, and industrial and operational collaboration across the defence industrial bases on the European continent and with like-minded partners. This requires both a significant step-up in funding, as well as a change of mindsets in national government and boardrooms.

The Commission proposal to amend the STEP, Horizon Europe, Digital Europe and Connecting Europe Facilities, as well as the European Defence Fund and ASAP regulations makes a small contribution in the right direction. The primary issue remains that funding sources are insufficient to address the needs, that the proposed solutions rely on the discretionary decision-making by Member States to transfer funds from one programme to another, and that through these measures little is done to advance efficiency in spending and reduce fragmentation of the EDTIB.

The rapporteur of the SEDE Committee Opinion does not propose to introduce amendments to the STEP and Horizon Europe regulations. In Connecting Europe Facility, changes are proposed to introduce mainstreaming of counter-mobility and actions that help restore affected critical digital/energy infrastructure using European assets, which addresses current weakness in our resilience. In the Digital Europe Facility, changes are proposed to more comprehensively address hybrid threats in the digital domain, to extend certain training and support activities to include armed forces, and to ensure that restrictions on third countries do not affect cooperation with associated countries, including Ukraine.

In the European Defence Fund regulation, changes are proposed to better include Ukraine and other associated countries, and subject to further agreement, countries with a Security and Defence Partnership. The Rapporteur further proposes to ensure that irrespective of the funding source, the EDF can continue to operate as a truly European program. Furthermore, changes are introduced to focus on identified capability gaps, to ensure faster timelines for projects supporting disruptive technologies, and to ensure appropriate support for SMEs and midcaps.

In relation to ASAP, the Rapporteur proposes not to amend the regulation as it is no longer necessary with the adoption of EDIP. As the European Parliament adopted EDIP regulation under urgent procedure at the request of the Council, it is expected that this regulation is now swiftly finalized, thus allowing the Parliament to avoid unnecessary legislative duplication.

AMENDMENTS

The Committee on Security and Defence submits the following to the Committee on Industry, Research and Energy, as the committee responsible:

Amendment 1

Proposal for a regulation

Recital 1

Text proposed by the Commission

Amendment

(1) The unprecedented geopolitical instability and the rapid deterioration of regional and global threat levels require an urgent and significant step up of the Union spending on research and development, industrial capacity and development of infrastructures connected with security and defence. As identified in the Joint White Paper for European Defence Readiness 2030, the Union should do more to support the urgent need to increase European defence-related investments with the Union budget.

(1) The unprecedented geopolitical instability and the rapid deterioration of regional and global threat levels, following, in particular, Russia’s war of aggression against Ukraine, its continued aggressive rhetoric toward the Union, and the threat of its conventional military attack against the Union’s Eastern flank, as well as the instability in the Middle East and in the Southern Neighbourhood, require an urgent and significant step up of the Union spending on research and development, industrial capacity and development of infrastructures connected with resilience, security and defence, and related supply chains, accompanied by a substantial and progressive increase in defence spending by Member States, also in line with the security commitments made to NATO. Member States, which are also part of NATO should, within that framework, enhance the cooperation of their armed forces towards the creation of a European pillar of NATO.

(The last sentence of recital 1 of the Commission proposal is reproduced in the new recital 1b.)

Amendment 2

Proposal for a regulation

Recital 1 a (new)

Text proposed by the Commission

Amendment

(1a) Union-level cooperation in the defence industry and the development of joint projects should be the guiding principles for the creation of a true Defence Union and accompanying internal market, as well as short-term solutions to rapidly ramping up production, innovation, and industrial, technological and operational collaboration across the defence industrial bases on the European continent and with like-minded partners.

Amendment 3

Proposal for a regulation

Recital 1 b (new)

Text proposed by the Commission

Amendment

(1b) This requires a significant step-up in funding, as well as a change of mindsets in national government and boardrooms. As identified in the Joint White Paper for European Defence Readiness 2030, the Union should do more to support the urgent need to increase European defence-related investments of sufficient scale and speed with the Union budget to respond to current and emerging threats. The Union should also address capability gaps by mobilising funds in the seven defence capability domains identified in the Joint White Paper for European Defence Readiness 2030 as critical to building a robust European defence capability, namely: air and missile defence; artillery systems; ammunition and missiles; drones and counter-drones systems; military mobility; artificial intelligence (AI), quantum, cyber and electronic warfare; strategic enablers; and critical infrastruture protection. In addition, this requires supporting the development and deployment of dual-use technologies and capabilities that strengthen the protection of critical infrastructure from hybrid threats, including cyberattacks and foreign information manipulations and interference (FIMI), and other risks to societal and economic stability.

Amendment 4

Proposal for a regulation

Recital 1 c (new)

Text proposed by the Commission

Amendment

(1c) The Union must, without delay, assume greater responsibility for its own defence capabilities through expanded Union funding. In that regard, the Union should prioritise investments that contribute to developing a competitive, integrated, innovative, and resilient European industrial ecosystem, capable of delivering critical defence capabilities and reducing strategic dependencies on third countries. The Union should promote unlocking private investments to enhance industrial capacity. Strengthening the Union’s resilience and strategic autonomy in defence, in particular through enhancing support for the defence industry in particular small and medium-sized enterprises (SMEs) and mid-caps, securing and prioritising European supply chains, and internal procedures that lead to European surge industrial capacity and a reduced dependency on imported defence-related materials and technologies, is essential to ensuring that Europe has the technological leadership that allows it to deter and respond to threats independently when necessary. The Union’s enhanced capacity should remain fully consistent with, and complementary to, existing collective security commitments. Closer cooperation with NATO, its members, and trusted partners, in particular in defence research, capability planning, and military mobility, is essential.

Amendment 5

Proposal for a regulation

Recital 1 d (new)

Text proposed by the Commission

Amendment

(1d) Investing in the development of cutting-edge dual-use capabilities should be promoted as it contributes to the Union’s broader societal resilience, security and competitiveness objectives. While noting the necessity of ensuring the equitable geographic distribution of defence-related investments for Union-wide cohesion and resilience, special attention and additional financing should be dedicated to Europe’s Eastern flank, bordering Russia, Belarus, and Ukraine, due to its unique security challenges and geopolitical significance. Those areas are often at the frontline of potential conflicts and are vulnerable to external threats, making it crucial to enhance local defence capabilities and foster resilience within communities. Investing in defence in those regions will not only strengthen European security and deter a potential aggressor but will also play a significant role in regional development, social cohesion, creating quality jobs, boosting local economic growth, developing related infrastructure and improving the quality of life for residents.

Amendment 6

Proposal for a regulation

Recital 1 e (new)

Text proposed by the Commission

Amendment

(1e) In order to ensure public support for and confidence in Union-level investment in security and defence, particular priority should be given to actions capable of delivering tangible, short- and medium-term results. Such actions should provide visible and measurable improvements to the security and resilience of the Union and its Member States, including the replenishment of stocks, reinforcement of critical infrastructure, and enhancement of cyber resilience. Demonstrating clear and rapid benefits to Union citizens and businesses is essential to strengthen the legitimacy and acceptance of Union policies and to underline the added value of common defence initiatives.

Amendment 7

Proposal for a regulation

Recital 2

Text proposed by the Commission

Amendment

(2) The Strategic Technologies for Europe Platform (STEP) established by Regulation (EU) 2024/795 of the European Parliament and of the Council1 is an initiative aimed at boosting Union competitiveness by mobilizing funds from 11 existing Union programmes towards critical technologies in 3 strategic sectors: digital technologies and deep tech innovation, clean and resource-efficient technologies, and biotechnologies. As such, it is a good vehicle to mobilise, in a coordinated and synergetic manner, Union resources towards defence, including key digital frontier technologies required for the development of defence products and technologies.

(2) The Strategic Technologies for Europe Platform (STEP) established by Regulation (EU) 2024/795 of the European Parliament and of the Council1 is an initiative aimed at boosting Union competitiveness by mobilizing funds from 11 existing Union programmes towards critical technologies in 3 strategic sectors: digital technologies and deep tech innovation, clean and resource-efficient technologies, and biotechnologies. As such, it is a good vehicle to mobilise, in a coordinated and synergetic manner, Union resources towards common defence and security capabilities, including key digital frontier technologies required for the development of defence products and technologies.

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1 Regulation (EU) 2024/795 of the European Parliament and of the Council of 29 February 2024 establishing the Strategic Technologies for Europe Platform (STEP), and amending Directive 2003/87/EC and Regulations (EU) 2021/1058, (EU) 2021/1056, (EU) 2021/1057, (EU) No 1303/2013, (EU) No 223/2014, (EU) 2021/1060, (EU) 2021/523, (EU) 2021/695, (EU) 2021/697 and (EU) 2021/241 (OJ L, 2024/795, 29.2.2024, ELI: http://data.europa.eu/eli/reg/2024/795/oj)

Amendment 8

Proposal for a regulation

Recital 3

Text proposed by the Commission

Amendment

(3) While support to technologies having defence implications is possible today under the 3 existing strategic sectors identified in STEP, it appears necessary to increase the potentialities of development of research, industry and innovation in the defence area by setting out a fourth strategic sector in STEP focussed on defence technologies. This new strategic sector should ensure that the STEP incentives are used to increase Union funding in defence technologies and contribute to European competitiveness in line with STEP objectives. Defence technologies should be understood as those referred to in the Annex to Directive 2009/43/EC and include, in particular, technologies in the areas identified by the European Council on March 6th 2025, namely: air and missile defence, artillery systems, including deep precision strike capabilities, missiles and ammunition, drones and anti-drone systems, strategic enablers, including in relation to space and critical infrastructure protection, military mobility, cyber, artificial intelligence and electronic warfare. As regards artificial intelligence, AI Gigafactories should become key infrastructures to expand rapidly the power of AI in defence technologies.

(3) While support to technologies having defence implications is possible today under the 3 existing strategic sectors identified in STEP, it appears necessary to increase the potentialities of development of research, industry and innovation in the defence area by setting out a fourth strategic sector in STEP focussed on defence and security technologies. This new strategic sector should ensure that the STEP incentives are used to increase Union funding in innovative defence and security technologies with the aim of bolstering Europe’s strategic autonomy and responding effectively to current and emerging threats, and contribute to European competitiveness in line with STEP objectives. Defence technologies should be understood as those referred to in the Annex to Directive 2009/43/EC and include, in particular, technologies in the areas identified by the European Council on March 6th 2025, namely: air and missile defence, artillery systems, including deep precision strike capabilities, missiles and ammunition, drones and anti-drone systems, strategic enablers, including in relation to space and critical infrastructure protection, military mobility, cyber, artificial intelligence and electronic warfare to counter military and hybrid threats. As regards artificial intelligence, AI Gigafactories should become key infrastructures to expand rapidly the power of AI in defence technologies.

Amendment 9

Proposal for a regulation

Recital 4

Text proposed by the Commission

Amendment

(4) In addition, in order to optimise the capacity of the programmes covered by STEP to mobilize Union’s resources towards defence, it is necessary to clarify that these programmes can pursue objectives and activities that are related to improving the of the European Defence Technological and Industrial basis (EDTIB) as well as research and development activities in the defence field.

(4) In addition, in order to optimise the capacity of the programmes covered by STEP to mobilize Union’s resources towards defence, it is necessary to clarify that these programmes can pursue objectives and activities that are related to improving the competitiveness and resilience of the European Defence Technological and Industrial basis (EDTIB) as well as research and development activities in the defence field.

Amendment 10

Proposal for a regulation

Recital 7

Text proposed by the Commission

Amendment

(7) The European Defence Fund (EDF) set out in Regulation (EU) 2021/697 of the European Parliament and of the Council2, is the leading programme for enhancing the competitiveness, innovation, efficiency and technological autonomy of the Union’s defence industry. The EDF also aims at supporting actions that are conducive to developing disruptive technologies for defence. In order to better address the specificities of such actions, such as their small scale or their need for a quick support, it is appropriate to focus on projects that deliver short-to-medium term results and to significantly shorten and simplify the procedures to decide on the support of these actions while in the same time framing the conditions for the decision on such a support in the work programme, while enhancing trust in the decision-making process and without undermining the principle of excellence. Moreover, in order to maximise the impact and legitimacy of the EDF, it is important to foster wide and balanced participation across the Union. Particular attention should be given to ensuring that SMEs, as well as entities from Member States with smaller or less mature defence technological and industrial bases, are able to access funding opportunities under the EDF. This approach contributes both to industrial cohesion, but also to the strategic resilience and innovation potential of the Union as a whole.

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2 Regulation (EU) 2021/697 of the European Parliament and of the Council of 29 April 2021 establishing the European Defence Fund and repealing Regulation (EU) 2018/1092 (OJ L 170 12.5.2021, p. 149, ELI: http://data.europa.eu/eli/reg/2021/697/2024-03-01).

Amendment 11

Proposal for a regulation

Recital 9

Text proposed by the Commission

Amendment

(9) The Digital Europe Programme (DEP) established by Regulation (EU) 2021/694 of the European Parliament and of the Council3 aims to support and accelerate the digital transformation of the European economy, industry and society and to improve the competitiveness of Europe in the global digital economy. In this context, taking into account the AI impact, new threats and the changing landscape in cybersecurity, the DEP should also aim at supporting, in particular, projects, services and competences with potential dual-use application under all its specific objectives, as well as enhancing societal and democratic resilience against hybrid warfare in the digital domain. Hybrid warfare is understood to encompass coordinated harmful activities that are planned and carried out by State or non-State actors with malign intent, aiming to undermine a target, such as a State or an institution, through a variety of often combined means. Such means may include FIMI, cyberattacks, economic influence or coercion, covert political manoeuvring, coercive diplomacy, threats of military force, or acts of sabotage. FIMI is understood to be a pattern of manipulative, intentional and coordinated behaviour that threatens or has the potential to negatively impact values, procedures and political processes.

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3 Regulation (EU) 2021/694 of the European Parliament and of the Council of 29 April 2021 establishing the Digital Europe Programme and repealing Decision (EU) 2015/2240 (OJ L 166 11.5.2021, p. 1, ELI: http://data.europa.eu/eli/reg/2021/694/2023-09-21)

Amendment 12

Proposal for a regulation

Recital 10 a (new)

Text proposed by the Commission

Amendment

(10a) In the specific Objective 3 of DEP - Cyber security and trust, it is also necessary to enlarge several of its operational objectives to increase protection from threats emanating from ongoing hybrid warfare against the democratic systems and critical infrastructure of the Union and its Member States.

Amendment 13

Proposal for a regulation

Recital 11

Text proposed by the Commission

Amendment

(11) In the specific Objective 5 of DEP – Deployment and Best Use of Digital Capacity and interoperability, it is also necessary to add, in the operational objective defined to support the public sector and areas of public interest, a reference to defence in order to clarify that the financial contribution of the Union under such an Objective can be extended to that sector.

Amendment 14

Proposal for a regulation

Recital 13

Text proposed by the Commission

Amendment

(13) Regulation (EU) 2023/1525 of the European Parliament and of the Council supporting ammunition production (ASAP)4 was adopted to financially support the urgent strengthening of the EDTIB responsiveness and ability to ensure the timely availability and supply of ground-to-ground and artillery ammunition as well as missiles. Voluntary transfers of resources allocated to Member States in shared management to the ASAP instrument as well as additional voluntary contributions from Member States or other relevant stakeholders should contribute to pursue the support to ramping up the Union’s manufacturing capacities beyond 30 June 2025. Regulation (EU) 2023/1525 should therefore be amended to introduce such a possibility. Since that Regulation has shown is usefulness to develop new production capacities of powder/propellant, explosives, shells, testing capacity, and missiles all across the Union, it is appropriate to ensure that its application is extended until 31 December 2026.

deleted

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4 Regulation (EU) 2023/1525 of the European Parliament and of the Council of 20 July 2023 on supporting ammunition production (ASAP) (OJ L 185, 24.7.2023, p. 7–25, ELI: http://data.europa.eu/eli/reg/2023/1525/oj)

Amendment 15

Proposal for a regulation

Recital 15 a (new)

Text proposed by the Commission

Amendment

(15a) Furthermore, in relation to military mobility, there is a need to increase the protection of European territories from conventional military threats by ensuring that counter-mobility is mainstreamed in all CEF actions. In order to accelerate the swift and seamless movement of military personnel, material and assets within the Union, Member States are encouraged to cooperate closely to achieve a swift upgrading of the 500 “hot spots” identified within the four corridors for military mobility of the trans-European transport network (TEN-T), with particular focus on the cross-border sections, including rail, ports and airports, of these corridors, which have an impact in the short term. The Union and the Member States are encouraged to facilitate civil-military cooperation in relation to military mobility, for example focusing on efficiency, interoperability, security and resilience of relevant ports and airports, rail networks, and transport hubs.

Amendment 16

Proposal for a regulation

Recital 17 a (new)

Text proposed by the Commission

Amendment

(17a) The Commission is encouraged to proactively inform the Member States of the opportunities and procedures created through amending these Regulations in order to maximize their impact on defence investments and could consider establishing a single information platform on defence-related funding opportunities. The implementation of this Regulation should strive for maximum efficiency, and unnecessary administrative burdens and duplication of efforts should be avoided, in order to swiftly deliver defence capabilities, while reducing duplication and promoting standardisation and interoperability.

Amendment 17

Proposal for a regulation

Article 1 – paragraph 1 – point -1 (new)

Regulation (EU) 2021/694

Article 3 – paragraph 1 – subparagraph 1

Present text

Amendment

(-1) in Article 3(1), the first subparagraph, is replaced by the following:

The general objectives of the Programme shall be to support and accelerate the digital transformation of the European economy, industry and society, to bring its benefits to citizens, public administrations and businesses across the Union, and to improve the competitiveness of Europe in the global digital economy while contributing to bridging the digital divide across the Union and reinforcing the Union’s strategic autonomy through holistic, cross-sectoral and cross-border support and a stronger Union contribution.

The general objectives of the Programme shall be to support and accelerate the digital transformation of the European economy, industry and society, to bring its benefits to citizens, public administrations and businesses across the Union, and to improve the competitiveness of Europe in the global digital economy while contributing to bridging the digital divide across the Union and reinforcing the Union’s strategic autonomy and societal resilience, through holistic, cross-sectoral and cross-border support and a stronger Union contribution.

Amendment 18

Proposal for a regulation

Article 1 – paragraph 1 – point -1 a (new)

Regulation (EU) 2021/694

Article 3 – paragraph 1 – subparagraph 2 – point b

Present text

Amendment

(-1a) in Article 3(1), second subparagraph, point (b) is replaced by the following:

(b) in the private sector and in areas of public interest, to widen the diffusion and uptake of Europe’s key digital technologies, promoting the digital transformation and access to digital technologies;

‘(b) in the private sector and in areas of public interest, to widen the diffusion and uptake of Europe’s key digital technologies, promoting the digital transformation, access to digital technologies and increasing the resilience against hybrid warfare in the digital domain;’

Amendment 19

Proposal for a regulation

Article 1 – paragraph 1 – point 1

Regulation (EU) 2021/694

Article 3 – paragraph 1 – subparagraph 2 – point c

Text proposed by the Commission

Amendment

Amendment 20

Proposal for a regulation

Article 1 – paragraph 1 – point 2 a (new)

Regulation (EU) 2021/694

Article 5 – paragraph 1 – subparagraph 1 – point b

Present text

Amendment

(2a) in Article 5(1), first subparagraph, point (b) is replaced by the following:

(b) make the capacities referred to in point (a) accessible to businesses, especially SMEs and start-ups, as well as civil society, not-for-profit organisations, research institutions, universities and public administrations, in order to maximise their benefit to the European society and economy;

‘(b) make the capacities referred to in point (a) accessible to businesses, especially SMEs and start-ups, as well as civil society, not-for-profit organisations, research institutions, universities, public administrations and the armed forces, in order to maximise their benefit to the European society, economy and security;’

Amendment 21

Proposal for a regulation

Article 1 – paragraph 1 – point 2 b (new)

Regulation (EU) 2021/694

Article 6 – paragraph 1 – point b

Present text

Amendment

(2b) in Article 6(1), point (b) is replaced by the following:

(b) support the building-up and best use of European knowledge, capacity and skills related to cybersecurity and the sharing and mainstreaming of best practices;

‘(b) support the building-up and best use of European knowledge, capacity and skills related to cybersecurity, countering hybrid warfare in the digital domain, and the sharing and mainstreaming of best practices;’

Amendment 22

Proposal for a regulation

Article 1 – paragraph 1 – point 2 c (new)

Regulation (EU) 2021/694

Article 6 – paragraph 1 – point e

Present text

Amendment

(2c) in Article 6(1), point (e) is replaced by the following:

(e) improve resilience against cyberattacks, contribute towards increasing risk-awareness and knowledge of cybersecurity processes, support public and private organisations in achieving basics levels of cybersecurity, for example by deploying end-to-end encryption of data and software updates;

‘(e) improve resilience against hybrid warfare, cyberattacks, contribute towards increasing risk-awareness and knowledge of cybersecurity processes, support public and private organisations in achieving basics levels of cybersecurity, for example by deploying end-to-end encryption of data and software updates;’

Amendment 23

Proposal for a regulation

Article 1 – paragraph 1 – point 2 d (new)

Regulation (EU) 2021/694

Article 6 – paragraph 1 – point g a (new)

Text proposed by the Commission

Amendment

(2d) in Article 6(1), the following point is added:

‘(ga) ‘support the development of advanced threat intelligence and cyber-defence capabilities tailored to defence-related infrastructure, including secure-by-design hardware, intrusion-resilient systems and cryptographic technologies.’

Amendment 24

Proposal for a regulation

Article 1 – paragraph 1 – point 3

Regulation (EU) 2021/694

Article 8 – paragraph 1 – point a

Text proposed by the Commission

Amendment

(a) support the public sector and areas of public interest, such as health and care, education, judiciary, customs, defense, transport, mobility, energy, environment, cultural and creative sectors, including relevant businesses established within the Union, to effectively deploy and access state-of-the-art digital technologies, such as HPC, quantum, AI and cybersecurity;

(a) support the public sector and areas of public interest, such as health and care, education, judiciary, customs, civil protection, defense, transport, mobility, energy, environment, cultural and creative sectors, including relevant businesses established within the Union, to effectively deploy and access state-of-the-art digital technologies, such as HPC, quantum, AI and cybersecurity;

Amendment 25

Proposal for a regulation

Article 1 – paragraph 1 – point 4

Regulation (EU) 2021/694

Article 12 – paragraph 5

Text proposed by the Commission

Amendment

5. The work programme may also provide that legal entities established in associated countries and legal entities that are established in the Union but are controlled from third countries are not eligible to participate in all or some actions under Specific Objective 3 for duly justified security reasons, and in actions focused on technologies with dual-use potential under any specific objective. In such cases, calls for proposals and calls for tenders shall be restricted to legal entities established or deemed to be established in Member States and controlled by Member States or by nationals of Member States. Such restrictions may be applied to access to the capacities deployed under such calls.

5. The work programme may also provide that legal entities established in associated countries and legal entities that are established in the Union but are controlled from third countries are not eligible to participate in all or some actions for duly justified security reasons, particularly in actions focused on technologies with dual-use potential under any specific objective. In such cases, calls for proposals and calls for tenders shall be restricted to legal entities established in Member States and controlled by Member States or by nationals of Member States. Where appropriate and necessary, the Commission may ease such restriction to allow participation from members of the European Free Trade Association which are members of the EEA and from Ukraine. Such restrictions may be applied to access to the capacities deployed under such calls.

Amendment 26

Proposal for a regulation

Article 2 – paragraph 1 – point 2 a (new)

Regulation (EU) 2021/695

Article 50 – paragraph 1 – subparagraph 2 a (new)

Text proposed by the Commission

Amendment

(2a) in Article 50(1), the following subparagraph is added:

‘To ensure the proper monitoring and oversight of the application of the exceptions to Article 7(1), the Commission shall provide additional information to the European Parliament concerning support for dual-use applications upon request.’

Amendment 27

Proposal for a regulation

Article 3 – paragraph 1 – point -1 (new)

Regulation (EU) 2021/697

Article 3 – paragraph 2 – subparagraph 1 – point b

Present text

Amendment

(-1) Article 3(2), point (b) is replaced by the following:

(b) to support the collaborative development of defence products and technologies, thus contributing to the greater efficiency of defence spending within the Union, achieving greater economies of scale, reducing the risk of unnecessary duplication and thereby fostering the market uptake of European defence products and technologies and reducing the fragmentation of defence products and technologies throughout the Union, ultimately leading to an increase in the standardisation of defence systems and a greater interoperability between Member States’ capabilities.

‘(b) to support the collaborative development of defence products and technologies, thus contributing to the development of a common market for defence and strengthening the competitiveness, integration, resilience and technological leadership of the EDTIB, the greater efficiency of defence spending within the Union, achieving greater economies of scale and retention of critical capabilities, reducing the risk of unnecessary duplication and excessive reliance on external suppliers and partners and thereby fostering the market uptake of European defence products and technologies and reducing the fragmentation of defence products and technologies throughout the Union, ultimately leading to a pan-European defence sector value-chain, an increase in the standardisation of defence systems and a greater interoperability between Member States’ capabilities.’

Amendment 28

Proposal for a regulation

Article 3 – paragraph 1 – point -1 a (new)

Regulation (EU) 2021/697

Article 3 – paragraph 2 – subparagraph 2

Present text

Amendment

(-1a) in Article 3(2), the second subparagraph is replaced by the following:

Such collaboration shall be consistent with defence capability priorities commonly agreed by Member States within the framework of the Common Foreign and Security Policy (CFSP) and in particular in the context of the CDP.

‘Such collaboration shall prioritise defence products and technologies fully aligned with the defence capability priorities commonly agreed by Member States within the framework of the Common Foreign and Security Policy (CFSP) and in particular the defence capability domains set out in the Joint White Paper for European Defence Readiness 2030, the Capability Development Plan (CDP) and the Overarching Strategic Research Agenda (OSRA) developed by the European Defence Agency.’

Amendment 29

Proposal for a regulation

Article 3 – paragraph 1 – point -1 b (new)

Regulation (EU) 2021/697

Article 5

Present text

Amendment

(-1b) Article 5 is replaced by the following:

Article 5

‘Article 5

Associated countries

The Fund shall be open to the participation of members of the European Free Trade Association which are members of the EEA, in accordance with the conditions laid down in the Agreement on the European Economic Area (associated countries).

The Fund shall be open to the participation of the members of the European Free Trade Association which are members of the EEA as well as of Ukraine, in accordance with the conditions laid down in the Agreement on the European Economic Area (associated countries).

Where strictly beneficial to the security interest of the Union and the capacities and resilience of the EDTIB, the association may be extended for specific actions to countries with which the Union has a Security and Defence Partnership, subject to further conditions laid down in the relevant framework agreement.’

Amendment 30

Proposal for a regulation

Article 3 – paragraph 1 – point 1

Regulation (EU) 2021/697

Article 6 – paragraph 1

Text proposed by the Commission

Amendment

1. The Commission shall support actions that are conducive to developing disruptive technologies for defence in the areas of intervention defined in the work programmes referred to in Article 24.

1. The Commission shall support actions that are conducive to developing disruptive technologies for defence, with priority given to technologies demonstrating high innovation and fast development potential as well as rapid deployment capability, in the areas of intervention defined in the work programmes referred to in Article 24.

Amendment 31

Proposal for a regulation

Article 3 – paragraph 1 – point 1

Regulation (EU) 2021/697

Article 6 – paragraph 2

Text proposed by the Commission

Amendment

2. The work programmes shall lay down the most appropriate forms of funding, selection and award criteria and procedures, and implementation for disruptive technologies for defence.

2. The work programmes shall lay down the most appropriate forms of funding, selection and award criteria and procedures, and implementation for disruptive technologies for defence. The timeline for the application for funding and the selection and awarding of funding shall be adjusted to the average duration of the innovation cycles of the disruptive technologies being funded. The work programmes shall give preference to actions capable of delivering results that address identified defence capability gaps and visibly contribute to strengthening the security, resilience and technological edge of the Union and its Member States. Such prioritisation shall aim to ensure that Union-funded projects produce measurable and timely benefits that enhance public confidence in the effectiveness and relevance of Union defence spending.

Amendment 32

Proposal for a regulation

Article 3 – paragraph 1 – point 2 a (new)

Regulation (EU) 2021/697

Article 10 – paragraph 3 a (new)

Text proposed by the Commission

Amendment

(2a) in Article 10, the following paragraph is inserted:

‘3a. Eligible actions shall benefit from the work of the Hub for European Defence Innovation (HEDI) established within the European Defence Agency. The HEDI shall in particular help identify, raise awareness of and facilitate transformation of the innovative results of those actions into new or upgraded defence products or technologies.’

Amendment 33

Proposal for a regulation

Article 3 – paragraph 1 – point 2 b (new)

Regulation (EU) 2021/697

Article 12 – paragraph 1 – point d

Present text

Amendment

(2b) in Article 12, point (d) is replaced by the following:

(d) its contribution to the autonomy of the EDTIB, including by increasing the non-dependency on non-Union sources and strengthening security of supply, and to the security and defence interests of the Union in line with the priorities referred to in Article 3;

‘(d) its contribution to the autonomy of the EDTIB, including by decreasing the dependency on non-Union sources and strengthening security of supply, in particular by favouring the development, use and scaling-up of critical defence capacities and technologies within the Union, and its contribution to the security and defence interests of the Union in line with the priorities referred to in Article 3’.

Amendment 34

Proposal for a regulation

Article 3 – paragraph 1 – point 2 c (new)

Regulation (EU) 2021/697

Article 13 – paragraph 2 – point a

Present text

Amendment

(2c) in Article 13(2), point (a) is replaced by the following:

(a) for activities referred to in point (e) of Article 10(3), support from the Fund shall not exceed 20 % of the eligible costs;

‘(a) for activities referred to in point (e) of Article 10(3), support from the Fund shall not exceed 20 % of the eligible costs, save that, where such activities are undertaken by a consortium of SMEs, the support may amount to up to 40% of the eligible costs;’

Amendment 35

Proposal for a regulation

Article 3 – paragraph 1 – point 2 d (new)

Regulation (EU) 2021/697

Article 13 – paragraph 2 – point b

Present text

Amendment

(2d) in Article 13(2), point (b) is replaced by the following:

(b) for activities referred to in points (f), (g) and (h) of Article 10(3), support from the Fund shall not exceed 80 % of the eligible costs.

‘(b) for activities referred to in points (f), (g) and (h) of Article 10(3), support from the Fund shall not exceed 80 % of the eligible costs, save that, where activities referred to in Article 10(3), point (f), are undertaken by a consortium of SMEs, the support may amount to up to 100% of the eligible costs.’

Amendment 36

Proposal for a regulation

Article 3 – paragraph 1 – point 2 e (new)

Regulation (EU) 2021/697

Article 13 – paragraph 3 – subparagraph 1 – point b

Present text

Amendment

(2e) in Article 13(3), point (b), is replaced by the following:

(b) an activity may benefit from an increased funding rate, as referred to in this point, where at least 10 % of the total eligible costs of the activity are allocated to SMEs established in Member States or in associated countries and which participate in the activity as recipients, subcontractors or other legal entities in the supply chain.

‘(b) an activity may benefit from an increased funding rate, as referred to in this point, where at least 25 % of the total eligible costs of the activity are allocated to SMEs established in Member States or in associated countries and which participate in the activity as recipients, subcontractors or other legal entities in the supply chain.’

The funding rate may be increased by percentage points equivalent to the percentage of the total eligible costs of the activity allocated to SMEs established in Member States or in associated countries in which recipients that are not SMEs are established and which participate in the activity as recipients, subcontractors or other legal entities in the supply chain, up to an additional 5 percentage points.

The funding rate may be increased by percentage points equivalent to twice the percentage of the total eligible costs of the activity allocated to SMEs established in Member States or in associated countries other than those in which recipients that are not SMEs are established and which participate in the activity as recipients, subcontractors or other legal entities in the supply chain;

Amendment 37

Proposal for a regulation

Article 3 – paragraph 1 – point 2 f (new)

Regulation (EU) 2021/697

Article 13 – paragraph 3 – subparagraph 1 – point c

Present text

Amendment

(2f) in Article 13(3), first subparagraph, point (c) is replaced by the following:

(c) an activity may benefit from a funding rate increased by an additional 10 percentage points where at least 15 % of the total eligible costs of the activity are allocated to mid-caps established in Member States or in associated countries.

‘(c) an activity may benefit from a funding rate increased by an additional 10 percentage points where at least 25 % of the total eligible costs of the activity are allocated to mid-caps established in Member States or in associated countries;’

Amendment 38

Proposal for a regulation

Article 3 – paragraph 1 – point 2 g (new)

Regulation (EU) 2021/697

Article 13 – paragraph 3 – subparagraph 1 – point c a (new)

Text proposed by the Commission

Amendment

(2g) In Article 13(3), first subparagraph, the following points are added:

‘(ca) an activity may benefit from a funding rate increased by an additional 2,5 percentage points where the action is carried out by a large consortium of eligible entities which are established in different Member States or associated countries, ensuring a wider geographical participation;’

Amendment 39

Proposal for a regulation

Article 3 – paragraph 1 – point 2 g (new)

Regulation (EU) 2021/697

Article 13 – paragraph 3 – subparagraph 1 – point c b (new)

Text proposed by the Commission

Amendment

(cb) an action developed with the participation of Ukrainian legal entities or in response to a clear requirement in support of Ukraine’s defence may benefit from a funding rate increased by an additional 10 percentage points.

Amendment 40

Proposal for a regulation

Article 4 – paragraph 1 – point -1 (new)

Regulation (EU) 2021/1153

Article 3 – paragraph 1

Present text

Amendment

(-1) In Article 3, paragraph 1 is replaced by the following:

1. The general objectives of the CEF are to build, develop, modernise and complete the trans-European networks in the transport, energy and digital sectors and to facilitate cross-border cooperation in the field of renewable energy, taking into account the long-term decarbonisation commitments and the goals of increasing European competitiveness; smart, sustainable and inclusive growth; territorial, social and economic cohesion; and the access to and integration of the internal market, with an emphasis on facilitating the synergies among the transport, energy and digital sectors.

‘1. The general objectives of the CEF are to build, develop, modernise, complete and make resilient the trans-European networks in the transport, energy and digital sectors and to facilitate cross-border cooperation in the field of renewable energy, taking into account the long-term decarbonisation commitments and the goals of increasing European competitiveness; smart, sustainable and inclusive growth; territorial, social and economic cohesion; and the access to and integration of the internal market, with an emphasis on facilitating the synergies among the transport, energy and digital sector.’

Amendment 41

Proposal for a regulation

Article 4 – paragraph 1 – point -1 a (new)

Regulation (EU) 2021/1153

Article 3 – paragraph 2 – point a – point ii

Present text

Amendment

(-1a) in Article 3(2)(a), point (ii) is replaced by the following:

‘(ii) to adapt parts of the TEN-T for the dual use of the transport infrastructure with a view to improving both civilian and military mobility’;

‘(ii) to adapt parts of the TEN-T for the dual use of the transport infrastructure with a view to improving both civilian and military mobility, including aspects related to military counter-mobility and the extension of fuel supply chains for the armed forces along those corridors;’

Amendment 42

Proposal for a regulation

Article 4 – paragraph 1 – point 1 a (new)

Regulation (EU) 2021/1153

Article 8 – paragraph 4 – point e

Present text

Amendment

(1a) in Article 8(4), point (e) is replaced by the following:

(e) projects of common interest deploying operational digital platforms shall prioritise actions based on state-of-the-art technologies, taking into account aspects such as interoperability, cybersecurity, data privacy and re-use

‘(e) projects of common interest deploying operational digital platforms shall prioritise actions based on state-of-the-art technologies, taking into account aspects such as interoperability, cybersecurity, data privacy and re-use, as well as their relevance for the Union’s strategic autonomy and defence needs, particularly in ensuring secure and resilient digital infrastructures for both civilian and military use.'

Amendment 43

Proposal for a regulation

Article 4 – paragraph 1 – point 2 a (new)

Regulation (EU) 2021/1153

Article 9 – paragraph 2 – point b – point x a (new)

Text proposed by the Commission

Amendment

(2a) in Article 9(2), point (b), the following point is added:

‘(xa) actions to mainstream counter-mobility measures in TEN-T infrastructure actions;’

Amendment 44

Proposal for a regulation

Article 4 – paragraph 1 – point 3 a (new)

Regulation (EU) 2021/1153

Article 10 – paragraph 1

Present text

Amendment

(3a) in Article 10, paragraph 1 is replaced by the following:

1. Actions contributing simultaneously to the achievement of one or more objectives of at least two sectors, as provided for in Article 3(2), points (a), (b) and (c), shall be eligible to receive Union financial support under this Regulation and to benefit from a higher co-funding rate, in accordance with Article 15. Such actions shall be implemented through work programmes addressing at least two sectors and including specific award criteria, and shall be financed with budget contributions from the sectors involved.

1. Actions contributing simultaneously to the achievement of one or more objectives of at least two sectors, as provided for in Article 3(2), points (a), (b) and (c), or enhancing the resilience of critical infrastructure in the transport, energy and digital sectors, shall be eligible to receive Union financial support under this Regulation and to benefit from a higher co-funding rate, in accordance with Article 15. Such actions shall be implemented through work programmes addressing at least two sectors and including specific award criteria, and shall be financed with budget contributions from the sectors involved.

Amendment 45

Proposal for a regulation

Article 4 – paragraph 1 – point 3 b (new)

Regulation (EU) 2021/1153

Article 10 – paragraph 2 a (new)

Text proposed by the Commission

Amendment

(3b) in Article 10, the following paragraph is added:

‘2a. To ensure an effective and rapid response to damaged submarine critical infrastructure, actions may include those aiming to create European civilian repair capabilities to complement available resources in Member States.’

Amendment 46

Proposal for a regulation

Article 4 – paragraph 1 – point 4

Regulation (EU) 2021/1153

Article 15 – paragraph 2 – point ba – point iii a (new)

Text proposed by the Commission

Amendment

(iiia) preference shall be given to the use of materials and technologies available in the Union, where appropriate.

Amendment 47

Proposal for a regulation

Article 4 – paragraph 1 – point 4

Regulation (EU) 2021/1153

Article 15 – paragraph 2 – point ba – paragraph 2 a (new)

Text proposed by the Commission

Amendment

In selecting the actions for financing, emphasis shall be given to projects enhancing rapid response capabilities and strategic connectivity along the Union’s Eastern flank, contributing to robust interoperability with Ukraine.

Amendment 48

Proposal for a regulation

Article 5 – paragraph 1 – point 1

Regulation (EU) 2023/1525

Article 6 – paragraphs 3a to 3d

Text proposed by the Commission

Amendment

(1) in Article 6, the following paragraphs are inserted:

deleted

‘3a. Member States, Union institutions, bodies and agencies, third countries, international organisations, international financial institutions or other third parties, may provide additional financial contributions to the Instrument. Such financial contributions shall constitute external assigned revenue within the meaning of Article 21(2), points (a), (d) or (e), or Article 21(5) of the Financial Regulation.

3b. Resources allocated to Member States under shared management may, at the request of the Member States concerned, be transferred to the Instrument subject to the conditions set out in the relevant provisions of Regulation (EU) 2021/1060. The Commission shall implement those resources directly in accordance with Article 62(1), first subparagraph, point (a), of the Financial Regulation or indirectly in accordance with point (c) of that subparagraph. Such resources shall be used for the benefit of the Member State concerned.

3c. Resources transferred in accordance to paragraph 3b of this Article may, by derogation from Article 19c(6) of this Regulation, be used for the purpose of contributing to the funding of eligible actions under Article 13 of this Regulation up to 100 % of the eligible costs.

3d. Where the Commission has not entered into a legal commitment under direct or indirect management for resources transferred in accordance with paragraph 3 and at the latest by 30 September 2027, the corresponding uncommitted resources may be transferred back to one or more respective source programmes, at the request of the Member State concerned, in accordance with the conditions set out in the relevant provisions of Regulation (EU) 2021/1060.’

Amendment 49

Proposal for a regulation

Article 5 – paragraph 1 – point 2

Regulation (EU) 2023/1525

Article 24 – paragraph 2 – subparagraph 2

Text proposed by the Commission

Amendment

(2) in Article 24, the second paragraph is replaced by the following:

deleted

‘This Regulation shall apply until 31 December 2026. That shall not affect the continuation or modification of actions initiated pursuant to this Regulation or any actions necessary to protect the financial interests of the Union.’

Amendment 50

Proposal for a regulation

Article 6 – paragraph 1

Regulation (EU) 2024/795

Article 2 – paragraph 1 – point a – point iv

Text proposed by the Commission

Amendment

(iv) defence technologies;

(iv) defence and security technologies;

ANNEX: DECLARATION OF INPUT

The rapporteur for opinion declares under his exclusive responsibility that he did not include in his opinion input from interest representatives falling within the scope of the Interinstitutional Agreement on a mandatory transparency register, or from representatives of public authorities of third countries, including their diplomatic missions and embassies, to be listed in this Annex pursuant to Article 8 of Annex I to the Rules of Procedure.

PROCEDURE – COMMITTEE ASKED FOR OPINION

Title

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

References

COM(2025)0188 – C10-0070/2025 – 2025/0103(COD)

Committee(s) responsible

Date announced in plenary

ITRE

16.6.2025

Opinion by

Date announced in plenary

SEDE

16.6.2025

Rapporteur for the opinion

Date appointed

Thijs Reuten

15.5.2025

Date adopted

16.7.2025

Result of final vote

–:

Members present for the final vote

Petras Auštrevičius, Wouter Beke, Marc Botenga, Tobias Cremer, Elio Di Rupo, Elena Donazzan, Christophe Gomart, Niclas Herbst, Nathalie Loiseau, Javi López, Costas Mavrides, Ana Catarina Mendes, Sven Mikser, Hannah Neumann, Andrey Novakov, Nicolás Pascual de la Parte, Jaroslava Pokorná Jermanová, Reinis Pozņaks, Mārtiņš Staķis, Sebastiaan Stöteler, Marie-Agnes Strack-Zimmermann, Michał Szczerba, Pierre-Romain Thionnet, Pekka Toveri, Michael von der Schulenburg, Alexandr Vondra, Lucia Yar

Substitutes present for the final vote

José Cepeda, Siegbert Frank Droese, Michael Gahler, Rasa Juknevičienė, Villy Søvndal, Petra Steger, Marta Wcisło, Željana Zovko

FINAL VOTE BY ROLL CALL BY THE COMMITTEE ASKED FOR OPINION

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