The European Parliament and the Council have reached an informal agreement to amend several major EU funding programs in order to increase support for defence investments. The changes are part of the ReArm Europe Plan, which aims to strengthen Europe’s defence technological and industrial base by directing more EU funding toward defence projects.
Under the agreement, existing EU programmes such as the Strategic Technologies for Europe Platform (STEP), Horizon Europe, the European Defence Fund (EDF), the Digital Europe programme (DEP), and the Connecting Europe Facility (CEF) will be updated to allow for increased spending on defence-related activities. These amendments will enable a broader range of investments, including measures aimed at protecting critical infrastructure, improving disaster response capabilities, ensuring election integrity, and enhancing resilience against cyber threats targeting digital infrastructure.
Negotiators from the European Parliament also secured provisions that will allow Ukraine’s defence industry to participate in the European Defence Fund. The Horizon Europe programme will continue to support civilian applications with potential military uses under a targeted exemption within this Multiannual Financial Framework (MFF). This arrangement does not affect ongoing negotiations about future MFFs.
A new focus on “defence technologies” will be introduced as a fourth strategic sector under STEP. The legislation is designed to extend support not only to established companies but also to non-bankable small- and medium-sized enterprises (SMEs), including start-ups and small mid-cap firms.
Additionally, amendments will make it possible for dual-use transport infrastructure—such as military mobility corridors—to receive EU funding through CEF. The European Commission may set conditions related to the country of origin for equipment or services used in these projects.
Lead MEP Rihard Kols (ECR, Latvia) commented: “With this agreement, Parliament and Council have done their job. Now it’s over to the Member States and the Commission to act – the tools are on the table, and the opportunities can be used.”
He added: “This mini-omnibus is more than a legislative fix – it’s a clear signal that the EU is finally starting to treat defence investment with the seriousness the times demand. The outcome reflects much of what Parliament fought for, and it sets a precedent. We expect to build on this in the future – with bolder, more far-reaching proposals next time. Parliament has shown it is ready. We shall use that momentum.”
The next step requires formal endorsement of this informal agreement by both Parliament and Council before it becomes law. A vote by Parliament’s Industry, Research and Energy committee is scheduled for November 20th; if approved there, it will go before all Members of Parliament before year-end.
The proposal was originally presented by the European Commission on April 22nd as part of efforts responding to growing geopolitical challenges facing Europe. It follows recommendations from recent policy documents aiming at boosting strategic autonomy and competitiveness within Europe’s defence sector.
