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

PA_Legam

SHORT JUSTIFICATION

The EU’s ability to move military assets swiftly and effectively across its territory has become a strategic imperative amid growing geopolitical instability. Military mobility is central not only to security and defence but also to economic resilience and civilian transport development. Upgrading critical cross-border infrastructure is essential to enhance dual-use capabilities, enabling both military deployments and civilian use.

Despite the adoption of the EU Action Plan on Military Mobility 2.0, the current 2021–2027 Multiannual Financial Framework (MFF) allocates only €790 million to military mobility under the Connecting Europe Facility (CEF), far short of what is needed to address bottlenecks and priority corridors.

While the European Regional Development Fund (ERDF) and the Cohesion Fund play a vital role in supporting transport infrastructure, their decentralised, shared-management structure limits their ability to prioritise strategic, cross-border military mobility projects.

To address this shortfall, the European Commission proposes a temporary, voluntary mechanism allowing Member States to transfer Cohesion Fund resources to the CEF. This would be accompanied by amendments to the CEF Regulation, ensuring that transferred resources benefit from the same pre-financing and co-financing conditions as under cohesion policy. This reallocation would allow the CEF to enhance governance, streamline implementation, and ensure strategic alignment with EU defence and transport priorities.

The rapporteur supports this targeted measure as a necessary interim solution for the 2025–2027 period. It would preserve progress made under the Military Mobility Action Plan, maintain investment momentum, and prepare the ground for a more ambitious, dedicated funding approach in the next MFF.

The CEF’s direct management model offers clear governance advantages over shared-management instruments. It ensures effective project selection, central coordination, and EU-level transparency. Moreover, investment in dual-use infrastructure benefits both military readiness and civilian connectivity, particularly in peripheral and cross-border regions. These projects support cohesion policy goals while delivering clear EU added value.

Lastly, the rapporteur stresses the importance of transparency and oversight in the implementation of this mechanism. All projects financed through transferred funds must adhere to CEF’s monitoring and reporting standards. Regular Commission updates on the use of reallocated resources will be crucial to ensure the efficiency and accountability of this approach.

AMENDMENTS

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

Amendment 1

Proposal for a regulation

Recital 6 a (new)

Text proposed by the Commission

Amendment

(6a) The Union's transport Joint Undertakings can serve as important instruments under Horizon Europe to develop key technology and robust infrastructure for the sector. In this regard, they are also fit for supporting dual-use infrastructure, adapting the transport system to meet dual-use requirements and facilitating civil-military coordination. The Joint Undertakings contribute to advancing transport policy as a pillar of both economic cohesion and strategic autonomy.

Amendment 2

Proposal for a regulation

Recital 15

Text proposed by the Commission

Amendment

(15) Military mobility is also one of the objectives of the CEF programme. The Joint White Paper for European Defence Readiness 2030 recognised military mobility as an essential enabler for European security and defence and stressed the Union added-value in supporting dual-use infrastructure for mobility. The mid-term review of the European Regional Development Fund (ERDF) and the Cohesion Fund both established by Regulation (EU) 2021/1058 of the European Parliament and of the Council9 introduced the possibility to invest in defence or dual use infrastructure to foster military mobility benefiting from a pre-financing of 30% of the amounts programmed and the possibility to apply a Union financing of up to 100%. In cases where Member States transfer resources allocated to them in shared management to CEF they should benefit from the same conditions on pre-financing and co-financing for dual-use transport infrastructure projects as introduced in the ERDF and Cohesion Fund. In such a case, these amounts should be reserved to projects developing the Military Mobility corridors as identified by the Member States in Military Requirements for Military Mobility within and beyond the Union as well as digital connectivity and capacities..

(15) Military mobility is also one of the objectives of the CEF programme. The Joint White Paper for European Defence Readiness 2030 recognised military mobility as an essential enabler for European security and defence and stressed the Union added-value in supporting dual-use infrastructure for mobility. The Trans-European Transport Network (TEN-T) policy serves as a key strategic instrument in building the Union’s cross-border transport infrastructure. Although originally intended for civilian purposes it also holds a remarkable potential for dual use, military and civilian. In line with the Strategic Compass, the Union aims to strengthen the dual-use transport infrastructure of the Trans-European Transport Network (TEN-T) in close cooperation with NATO and other like-minded partners. The objective to complete the TEN-T core network by 2030 remains unchanged.

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9 Regulation (EU) 2021/1058 of the European Parliament and of the Council of 24 June 2021 on the European Regional Development Fund and on the Cohesion Fund (OJ L 231 30.6.2021, p. 60, ELI: http://data.europa.eu/eli/reg/2021/1058/2024-12-24)

Amendment 3

Proposal for a regulation

Recital 15 a (new)

Text proposed by the Commission

Amendment

(15a) The Niinisto report specifically mentions the necessity to intensify further work on priority dual-use transport corridors for military movements and the extension of fuel supply chains for the armed forces along these corridors, as well as stockpiling and strategic reserves of energy. This position is echoed in NATO statements. Estimates show that the Union requires an initial investment of at least EUR 70 billion to adapt its transport and logistics infrastructure for the rapid movement of troops and equipment across Union territory in the event of conflict.

Amendment 4

Proposal for a regulation

Recital 15 b (new)

Text proposed by the Commission

Amendment

(15b) Actions financed under CEF should contribute to the improvement and acceleration of the Trans-European Transport Network (TEN-T) and be designed for interoperability and compatibility with civilian use. Investment in dual-use infrastructure benefits both military readiness and civilian connectivity. Given the 94% overlap between the military mobility corridors and TEN-T dual use infrastructure, funding of military mobility will benefit civilian use.

Amendment 5

Proposal for a regulation

Recital 15 c (new)

Text proposed by the Commission

Amendment

(15c) The mid-term review of the European Regional Development Fund (ERDF) and the Cohesion Fund both established by Regulation (EU) 2021/1058 of the European Parliament and of the Council1a introduced the possibility to invest in defence or dual use infrastructure to foster military mobility benefiting from a pre-financing of 30% of the amounts programmed and the possibility to apply a Union financing of up to 100%. In cases where Member States transfer resources allocated to them in shared management to CEF they should benefit from the same conditions on pre-financing and co-financing for dual-use transport infrastructure projects as introduced in the ERDF and Cohesion Fund, provided that transparent and objective criteria are applied, taking into account the strategic importance of the project, regional disparities, and the need to strengthen cohesion within the Union.

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1a Regulation (EU) 2021/1058 of the European Parliament and of the Council of 24 June 2021 on the European Regional Development Fund and on the Cohesion Fund (OJ L 231 30.6.2021, p. 60, ELI: http://data.europa.eu/eli/reg/2021/1058/2024-12-24)

Amendment 6

Proposal for a regulation

Recital 15 d (new)

Text proposed by the Commission

Amendment

(15d) Where Member States transfer resources allocated to them in shared management to CEF, those amounts should be reserved to projects developing the Military Mobility corridors identified by the Member States in the Military Requirements for Military Mobility within and beyond the Union, as well as digital connectivity and capacities, including the availability of appropriate logistics hubs for the deployment and subsequent redeployment of forces to and from the Union.

Amendment 7

Proposal for a regulation

Recital 15 e (new)

Text proposed by the Commission

Amendment

(15e) 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 “hot spots” infrastructure within the four military mobility corridors, and particularly focus on the cross-border sections of these corridors, which have an impact in the short term. Priority investments on these corridors, their cross-border sections and the hot spots identified by the Commission shall be led in cooperation with NATO and driven by its requirements.

Amendment 8

Proposal for a regulation

Recital 15 f (new)

Text proposed by the Commission

Amendment

(15f) The expertise of European industry, in particular SMEs, in the defence, security and dual-use technology sectors should be fostered and their access to cooperation networks, supply chains and markets facilitated. When establishing the work programmes in accordance with Article 20, the Commission should give consideration to projects ensuring resource efficiency, fostering circularity and using materials and technologies available in the Union in order to contribute to its strategic autonomy.

Amendment 9

Proposal for a regulation

Recital 15 g (new)

Text proposed by the Commission

Amendment

(15g) Notwithstanding the prioritisation provided in this Regulation to specific transport objectives related to military mobility through a higher co-financing rate, the outcome of such prioritisation should be without prejudice to the forthcoming Multiannual Financial Framework.

Amendment 10

Proposal for a regulation

Article 4 – paragraph 1 – point 1 – point c

Regulation (EU) 2021/1153

Article 3 – paragraph 2 – point c

Text proposed by the Commission

Amendment

(c) in the digital sector: to contribute to the development of projects of common interest relating to the deployment of and access to safe and secure very high capacity networks, including 5G systems, to the set-up and deployment of digital capacities such as cloud, AI and AI Gigafactories, to the increased resilience and capacity of digital backbone networks on Union territories by linking them to neighbouring territories, as well as to the digitalisation of transport and energy networks.;

(c) in the digital sector: to contribute to the development of projects of common interest relating to the deployment of and access to safe and secure very high capacity networks, including 5G systems, to the set-up and deployment of digital capacities such as cloud, AI and AI Gigafactories, to the increased resilience and capacity of digital backbone networks on Union territories by linking them to neighbouring territories, as well as to secure digitalisation of transport and energy networks.;

Amendment 11

Proposal for a regulation

Article 4 – paragraph 1 – point 4

Regulation (EU) 2021/1153

Article 15 – paragraph 2 – point ba – point i

Text proposed by the Commission

Amendment

(i) co-financing rates may be increased to a maximum of 100%;

(i) co-financing rates may be increased to a maximum of 100%, namely for projects related to the hot spots and cross-border sections within the four priority Military Mobility Corridors identified by the Commission;

Amendment 12

Proposal for a regulation

Article 4 – paragraph 1 – point 4

Regulation (EU) 2021/1153

Article 15 – paragraph 2 – point ba – point iii

Text proposed by the Commission

Amendment

(iii) actions shall be located on one or more of the four EU Priority Military Mobility Corridors identified by Member States in Annex II to the Military Requirements for Military Mobility within and beyond the Union, as adopted by the Council on [18 March 2025 and with reference ST 6728/25 ADD1] and shall comply with the infrastructure requirements as set out in Commission Implementing Regulation (EU) 2021/1328.

(iii) actions shall be located on one or more of the four EU Priority Military Mobility Corridors identified by Member States in Annex II to the Military Requirements for Military Mobility within and beyond the Union, as adopted by the Council on [18 March 2025 and with reference ST 6728/25 ADD1], including logistics hubs, and prioritising actions applying to the hot spots and cross-border sections of these corridors, which have a short-term impact, and shall comply with the infrastructure requirements as set out in Commission Implementing Regulation (EU) 2021/1328. Preference shall be given to the use of materials and technologies available in the Union, where appropriate.

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

TRAN

16.6.2025

Rapporteur for the opinion

Date appointed

Marjan Šarec

3.6.2025

Discussed in committee

24.6.2025

Date adopted

16.7.2025

Result of final vote

+:

–:

0:

30

5

4

Members present for the final vote

Daniel Attard, Adrian-George Axinia, Tom Berendsen, Rachel Blom, Nina Carberry, Benoit Cassart, Vivien Costanzo, Johan Danielsson, Valérie Devaux, Jens Gieseke, Sérgio Gonçalves, Roman Haider, Sérgio Humberto, Dariusz Joński, François Kalfon, Sophia Kircher, Merja Kyllönen, Julien Leonardelli, Milan Mazurek, Alexandra Mehnert, Ştefan Muşoiu, Jan-Christoph Oetjen, Philippe Olivier, Arash Saeidi, Marjan Šarec, Andreas Schieder, Volker Schnurrbusch, Rosa Serrano Sierra, Virginijus Sinkevičius, Stanislav Stoyanov, Kai Tegethoff, Elissavet Vozemberg-Vrionidi, Kosma Złotowski

Substitutes present for the final vote

Markus Ferber, Mircea-Gheorghe Hava, Lena Schilling, Kathleen Van Brempt, Ana Vasconcelos

Members under Rule 216(7) present for the final vote

Isabel Wiseler-Lima

FINAL VOTE BY ROLL CALL BY THE COMMITTEE ASKED FOR OPINION

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