Sittings · Document

Adopted text 2026-09-16

Defence readiness and facilitating defence investments and conditions for the defence industry (Omnibus V)

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Parliament's position at first reading on a regulation amending five EU laws on chemicals and the European Defence Fund (EDF) to support defence readiness and defence investment. It lets member states grant wider exemptions from chemicals rules where necessary in the interests of defence, and lets them withhold sensitive information from reporting under the persistent organic pollutants regulation. It amends the EDF regulation to simplify award criteria, allow annual or multiannual work programmes, more flexible indirect management and direct awards, and make testing costs in Ukraine eligible from 1 January 2025. It adds funding-rate increases for small and medium-sized enterprises (SMEs) and cross-border SMEs, and gives co-financing member states access rights to development results on fair terms.

Key points

  1. Member states may allow exemptions from Regulation (EC) No 1907/2006 for substances where necessary in the interests of defence.
  2. Member states may allow exemptions from Regulation (EC) No 1272/2008 for substances, mixtures and certain articles where necessary in the interests of defence.
  3. Member states may allow exemptions from Regulation (EU) No 528/2012 for biocidal products where necessary in the interests of defence.
  4. Regulation (EU) 2019/1021 adds a definition of 'defence readiness' and requires defence readiness and defence-sector specificities to be taken into account in risk management evaluation information.
  5. Member states may exempt themselves from reporting under Article 13 of Regulation (EU) 2019/1021 to protect sensitive information, provided this does not undermine compliance with Convention reporting obligations.
  6. The EDF regulation gains definitions of cross-border SMEs, pre-commercial procurement and ex aequo proposals, and budgetary commitments may be broken down into annual instalments.
  7. The EDF supports disruptive defence technologies and research and development by SMEs, with work programmes setting funding forms, criteria and procedures.
  8. Specific EDF actions may be carried out under indirect management in substantiated cases, and in exceptional circumstances funding may be granted without a call for proposals.
  9. Costs of testing activities in Ukraine are eligible for EDF support if they benefit the action and strengthen the competitiveness, efficiency and innovation capacity of the European Defence Technological and Industrial Base (EDTIB).
  10. Award criteria are simplified: proposals are assessed on excellence in the defence domain and quality and efficiency of implementation, plus one or more optional criteria set per call.
  11. EDF support for activities under Article 10(3), point (e), is capped at 20% of eligible costs, with funding-rate increases for PESCO or SEAP projects and for SME participation.
  12. Only a coordinator's financial capacity is verified, multiple sourcing may be authorised, and the EDF is implemented through annual or multiannual work programmes.

Who is affected

  • Member states, which may grant defence exemptions from chemicals rules and withhold sensitive reporting information.
  • The defence industry, especially SMEs and cross-border SMEs, which gain simplified procedures and higher funding rates.
  • Recipients of EDF funding, who must notify transfers of ownership to non-associated third countries and may reimburse support.
  • National authorities co-financing EDF actions, which may negotiate access rights to development results for defence planning.
  • Ukrainian entities, whose testing infrastructure may be used for EDF-funded testing activities.

Figures and deadlines

  • 20% of eligible costs: maximum EDF support for activities referred to in Article 10(3), point (e).
  • 10 percentage points: additional funding rate for actions in a PESCO project or a Structure for European Armament Programme (SEAP).
  • 10% of total eligible costs allocated to SMEs: threshold for an increased funding rate.
  • Up to an additional 10 percentage points: increase based on the share of costs allocated to SMEs.
  • Twice the percentage of total eligible costs allocated to cross-border SMEs: possible funding-rate increase.
  • Three years of the final payment of the action: period within which transfers of ownership to non-associated third countries must be notified.
  • 1 January 2025: date from which the amended Article 9(6), third subparagraph, applies.
  • Twentieth day following publication: entry into force of the regulation.

Legal basis: Article 114, Article 173(3), Article 182(4), Article 183, Article 188, second paragraph, and Article 192(1) of the Treaty on the Functioning of the European Union.

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