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DRAFT REPORT (2025/2144(INI))

On flagship European defence projects of common interest

SEDE-PR-776841

Committee on Security and Defence · Rapporteur: Lucia Annunziata

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This draft report concerns flagship European defence projects of common interest. It acknowledges increased defence spending, notes persistent capability gaps, and stresses the need for strategic enablers and a managed transition from dependency on non-EU countries to strategic autonomy. It calls for clear objectives for the four initial European Readiness Flagships, a definition of flagship projects, alignment with EU defence objectives, inclusion of a wide range of industrial actors, and prevention of technology transfers to destinations of concern. It recommends a supporting role for the Commission, the High Representative and the EDA, commits Parliament to scrutiny, and calls for long-term financing, including a specific fund under the next multiannual financial framework and co-financing commitments from Member States.

Committee position. The rapporteur proposes a resolution that acknowledges increased defence spending, stresses the need for strategic enablers and a managed transition to strategic autonomy, and calls for clear objectives, governance, and long-term financing for flagship projects.

Key points

  1. Acknowledges the significant increase in defence expenditure among EU Member States and stresses the need for greater coordination, efficiency and integration in defence policies.
  2. Notes persistent shortfalls in strategic collective capabilities and calls for urgent measures to address them through enhanced cooperation and targeted investments.
  3. Recommends developing autonomous Strategic Enablers, including a common architecture for command, control, communications, intelligence, surveillance, target acquisition and reconnaissance, and capabilities in space, strategic airlift, air-to-air refuelling and CBRN risk prevention.
  4. Stresses the need for a managed transition from dependency on non-EU countries to strategic autonomy and strengthening the European Defence Technological and Industrial Base.
  5. Urges the Commission, Member States and the EDA to clearly identify specific objectives, timelines, technological scope and expected size for the four initial European Readiness Flagships.
  6. Recognises the need to establish a definition of flagship projects as large-scale, pan-European collaborative initiatives, and stresses that their objectives must align with agreed EU defence objectives and address innovative technological areas.
  7. Emphasises that flagship projects should foster cooperation and innovation in governance, building on existing cooperation within PESCO and EDF projects.
  8. Calls for the inclusion of the widest range of industrial actors, including mid-caps and SMEs, in flagship projects.
  9. Urges Member States to prevent transfer of sensitive technologies to destinations of concern and to agree on a common strategy for export licenses.
  10. Calls on the Commission and Member States to present further proposals for flagship projects and recommends a supporting role for the Commission, the High Representative and the EDA.
  11. Commits Parliament to exercising scrutiny and legislative and budgetary roles based on regular information from the Commission.
  12. Calls on the Commission to explore a specific fund under the next multiannual financial framework and stresses that Member States must commit to co-financing flagship projects for their entire duration.

Who is affected

  • EU Member States: must align national efforts, co-finance flagship projects, and consider earmarking defence budgets for partnership initiatives.
  • Defence industry, including mid-caps and SMEs: to be included in flagship projects to spread innovation.
  • Commission, High Representative, and EDA: to support implementation of flagship projects.

Figures and deadlines

  • 18 % of total equipment spending by EU Member States was devoted to EU collaborative defence equipment procurement in 2022.
  • 35 % collective benchmark set by Member States at the EDA Ministerial Steering Board in 2007.
  • Two-year implementation period provided for by the EDIP.

Legal basis: Articles 42(2) and 42(3) TEU; Articles 2, 107(3)(b) and 346 TFEU