On Wednesday (10 June), negotiators from the European Parliament and the Council reached an agreement on a package of new rules designed to speed up defence investment across the bloc. The deal forms part of the EU’s “Omnibus V” simplification initiative, which seeks to reduce red tape around defence projects, procurement and funding, while helping unlock up to €800 billion in defence spending over the next four years through the Readiness 2030 initiative.
Faster permits for defence projects
One of the most significant elements of the deal concerns how quickly defence-related building projects, such as new weapons factories or the expansion of existing sites, can get the green light. Under the new rules, national authorities will generally have 42 working days to decide on a permit application once it is deemed complete. In exceptional cases (including environmental or worker safety concerns), the deadline may be extended twice by up to 60 days. However, the permit process must still be completed within 102 working days in total.
Importantly, if authorities miss these deadlines, the project will usually be treated as approved by default, a principle known as “tacit approval”. Countries will also need to set up single points of contact so that companies applying for permits have one place to go for information, and progress will be tracked digitally to ensure consistency across the EU.
Making it easier to buy and move defence equipment
A second strand of the agreement focuses on how EU countries and companies buy defence equipment and move it across borders. At present, transferring defence-related products, such as components for military vehicles or weapons systems, from one EU country to another can involve lengthy licensing procedures. The new deal introduces general transfer licences that simplify this process, with countries required to publish details so that companies have a clearer, more predictable framework to work within.
On procurement, the rules raise the financial thresholds above which formal EU procurement procedures apply, giving authorities more flexibility for smaller contracts. They also extend the maximum length of framework agreements, long-term contracts between a buyer and supplier, from seven to ten years, and make it easier for countries to club together for joint purchases.
Supporting funding and smaller businesses
The agreement also reforms the European Defence Fund (EDF), the EU’s main financial instrument for supporting defence research and development. The changes simplify the application process and clarify the criteria projects must meet to receive funding, with priority given to those demonstrating high standards of quality and efficiency. SMEs stand to benefit particularly, with increased funding rates designed to encourage their participation in EU defence projects. In a further development, costs linked to testing equipment in Ukraine will now be eligible for EDF funding, reflecting closer cooperation with Ukrainian defence entities.
The deal also addresses how EU environmental and chemical regulations apply to defence activities, allowing limited exemptions where justified, while stating that protections for human health and the environment remain a priority, with derogations from tacit approval possible where there is a serious risk to health or national security.
Next steps
This agreement is provisional and must still be formally approved by both the European Parliament and the Council before it becomes law, a process expected to take some months. Once adopted, the rules are likely to shape how quickly new defence facilities can be built, how easily equipment can move between EU countries, and how effectively Europe can meet its goal of significantly boosting defence readiness by 2030.
