The European Parliament and EU member states have reached a provisional agreement on a package of measures aimed at accelerating defence investment, simplifying
procurement rules and strengthening Europe’s military readiness amid growing security concerns.
The agreement, concluded on Wednesday, forms part of the EU’s “Omnibus V” simplification initiative and is designed to support up to €800 billion in defence spending over the next four years under the ReArm Europe Plan/Readiness 2030 strategy.
Under the deal, permit approvals for defence-related projects such as new manufacturing facilities and factory expansions will be significantly accelerated. National authorities will generally be required to issue permit decisions within 42 working days after receiving a complete application. In exceptional cases involving complex projects or environmental and workplace safety concerns, authorities may extend the process by up to 60 additional working days, bringing the maximum approval period to 102 working days.
The legislation also introduces a tacit approval mechanism. If authorities fail to meet the applicable deadline, permits will be deemed approved automatically, with authorities required to notify project developers within eight working days and outline any conditions attached to the approval.
To improve transparency and efficiency, member states will establish single points of contact for defence project promoters, implement digital permit-tracking systems and provide annual reports to the European Commission. The Commission will also monitor the use of tacit approvals across the bloc.
The agreement seeks to remove regulatory barriers that have slowed defence procurement and cross-border cooperation. A new general transfer licence for defence-related products will simplify the movement of military equipment within the EU, providing companies with a more predictable framework for operating across member states.
Procurement rules will also be updated. The threshold for applying EU procurement requirements will be increased, while the maximum duration of framework agreements will be extended from seven to ten years. The changes are intended to provide greater flexibility for joint defence purchases by member states.
In a joint statement, Parliament and Council committed to exploring additional measures to facilitate intra-EU transfers of defence products and assess the potential introduction of EU preference criteria in defence procurement.
The two institutions stressed the need to rapidly expand Europe’s defence capabilities by 2030, strengthen the European defence technological and industrial base, support small and medium-sized enterprises (SMEs), reduce procurement bottlenecks and improve access to defence supply chains across the bloc.
Negotiators also agreed to simplify the management of the European Defence Fund (EDF). Funding criteria have been revised to prioritise projects demonstrating high levels of excellence, quality and efficiency. The agreement expands opportunities for SMEs to benefit from increased EDF support and extends enhanced funding provisions to projects developed under the Structure for European Armament Programme (SEAP).
In a move aimed at deepening cooperation with Kyiv, costs associated with testing activities in Ukraine will become eligible for EDF funding, despite the country not yet being an EU member.
The agreement further confirms that member states may apply exemptions from certain EU environmental and chemical regulations when justified by defence requirements. Lawmakers insisted that such exemptions must be used only in clearly justified cases.
The provisional deal must now receive formal approval from both the European Parliament and the Council before it can enter into force.