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OPINION (COM(2025)0555 – C10-0165/2025 – 2025/0555(COD))

On the proposal for a regulation of the European Parliament and of the Council on establishing the European Competitiveness Fund ('ECF’), including the specific programme for defence research and innovation activities, repealing Regulations (EU) 2021/522, (EU) 2021/694, (EU) 2021/697, (EU) 2021/783, and amending Regulations (EU) 2021/696, (EU) 2023/588, (EU) [EDIP]

SEDE-AD-782450

Committee on Security and Defence · Rapporteur: Riho Terras

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The Committee on Security and Defence proposes amendments to the proposed regulation establishing the European Competitiveness Fund (ECF), including its defence research and innovation programme. The amendments add defence, security, space and cybersecurity priorities, and set rules for defence funding, common procurement and eligibility. They require that a larger share of the Resilience and Security, Defence industry and Space policy window go to defence industry actions, and that the ECF support the European Defence Technological and Industrial Base (EDTIB). They create European Defence Projects of Common Interest (EDPCIs), set their criteria and governance, and allow the Council to adopt implementing acts identifying them. They set funding rates for defence actions, including up to 75% for development actions and up to 15% for common procurement, with increases for small and medium-sized enterprises (SMEs) and certain cooperations. They strengthen security of supply rules, including a mechanism to redirect ECF funding in case of aggression against a Member State, and tighten eligibility conditions for recipients and subcontractors. They also amend space, civil security and military mobility provisions, and repeal parts of Regulation (EU) 2025/2643.

Committee position. The Committee on Security and Defence proposes amendments to the ECF regulation to strengthen defence, security, space and cybersecurity provisions, and to set rules for defence funding, common procurement and eligibility.

Key points

  1. The committee proposes amendments to the Commission proposal for the ECF regulation, including the specific programme for defence research and innovation.
  2. It adds new recitals on emerging technologies, eastern border regions, cybersecurity, defence readiness and NATO compatibility.
  3. It requires that the larger share of the indicative envelope of the Resilience and Security, Defence industry and Space policy window be dedicated to defence industry actions.
  4. It adds objectives to strengthen the EDTIB, protect critical infrastructure, reduce dependencies and support defence industrial readiness.
  5. It creates European Defence Projects of Common Interest (EDPCIs) with criteria, and allows the Council to adopt implementing acts identifying them by qualified majority.
  6. It sets rules for EDPCIs, including participation of at least four Member States, eligibility for Union funding, and possible establishment in a Structure for European Armament Programme (SEAP).
  7. It adds a mechanism to redirect ECF funding to the EDTIB in case of aggression against a Member State or activation of the mutual defence clause.
  8. It sets funding rates: up to 75% for defence development actions, up to 35% for disruptive technologies, and up to 15% for common procurement, with increases for SMEs and certain cooperations.
  9. It tightens eligibility rules for recipients and subcontractors, including location, control by non-associated third countries, and security guarantees.
  10. It adds provisions on military mobility, including support for dual-use assets, military bases and protection of strategic infrastructure.
  11. It amends space provisions to include defence readiness, security and resilience needs in Copernicus and the Earth Observation Governmental Service (EOGS).
  12. It amends Article 87 to repeal Chapters I, II (except section 4 on Procurement) and IV of Regulation (EU) 2025/2643 with effect from 1 January 2028.

Who is affected

  • Defence industry, including SMEs, start-ups and scale-ups, which gain access to ECF funding and new schemes such as EUDIS.
  • Member States, which must coordinate on EDPCIs, common procurement and defence industrial readiness pools.
  • Associated countries, which may participate in EDPCIs and the Defence Industrial Steering Board without voting rights.
  • Space and cybersecurity sectors, which receive support for defence readiness, resilience and critical infrastructure protection.
  • Ukraine and Moldova, which may benefit from common procurement of additional defence products.

Figures and deadlines

  • EUR 125 204 000 000 for the specific objectives referred to in Article 3(2), point (d).
  • At least four Member States must be involved in an EDPCI.
  • Union support may cover up to 75% of eligible costs for defence development actions.
  • Union support may cover up to 35% of eligible costs for disruptive technology actions.
  • Union support may cover up to 15% of the estimated value of common procurement.
  • Indirect costs may be funded at 25% of total eligible direct costs.
  • The estimated cost of components originating outside the Union and associated countries shall not be higher than 35% of the estimated cost of the components of the end product.
  • Chapters I, II (except section 4) and IV of Regulation (EU) 2025/2643 shall be repealed with effect from 1 January 2028.