The European Parliament’s Industry, Research and Energy committee has approved a set of measures designed to increase EU support for security and defence investments as part of the ReArm Europe Plan. The new legislation aims to strengthen Europe’s defence technological and industrial base by redirecting funding from existing EU programmes toward defence and security initiatives.
Under the proposed changes, “defence and security technologies” will become a fourth strategic sector within the Strategic Technologies for Europe Platform (STEP). The definition of defence technologies will be expanded to include aspects of societal resilience, such as protecting critical infrastructure, disaster response, and safeguarding election integrity.
The committee also endorsed the European Commission’s proposal for Horizon Europe to fund civil applications with potential military uses, known as dual-use technologies. For the European Defence Fund (EDF), funding rates will be increased for small- and medium-sized enterprises (SMEs) and small mid-cap companies, allowing eligible projects to receive up to 100% EU co-financing.
Within the Digital Europe Programme (DEP), MEPs want to facilitate the development of AI factories and gigafactories focused on defence-related artificial intelligence models. They argue that these efforts should also help reinforce societal resilience across the Union and address hybrid digital threats.
Additionally, the committee supports allocating EU funds through the Connecting Europe Facility (CEF) for dual-use transport infrastructure projects, including military mobility corridors, fuel supply chains, and logistics hubs. MEPs propose raising co-financing rates up to 100%, particularly for projects involving hot-spots or cross-border sections of military mobility corridors. Eligibility criteria would also be broadened for dual-use fuel infrastructure.
To reduce reliance on external countries, MEPs recommend prioritizing materials, products, and technologies that decrease strategic dependencies on non-EU nations. They emphasize Ukraine’s importance in European security and suggest exploring ways to integrate Ukraine’s defence industry into relevant EU programmes while supporting its modernization efforts in line with European standards.
“This vote is a clear and unified signal: Europe must act swiftly and decisively to strengthen its defence industrial base, streamline cross-border cooperation, and adapt our key EU programmes to serve our strategic objectives. Parliament has defined a coherent framework consolidating existing instruments – without creating new funding lines – so member states have the flexibility and the tools to deliver,” said lead MEP Rihard Kols (ECR, Latvia).
“Security and defence are now EU citizens’ top concern. It is time to act, enter swift negotiations, and deliver. This is how Europe leads – by turning urgency into unity, and unity into action,” he added.
The draft legislation was adopted with 63 votes in favor, five against, and four abstentions. MEPs also voted by 64 votes to five—with three abstentions—to open negotiations with the Council of Ministers. The full parliamentary plenary must be notified before formal negotiations can begin.
The European Commission presented this proposal on April 22, 2025 as part of efforts under the ReArm Europe Plan in response to growing geopolitical threats. The plan seeks to reinforce the European Defence Technological and Industrial Base using funds from existing budgets rather than new allocations. It builds upon previous policy initiatives aimed at enhancing EU strategic autonomy in defence matters.
