Parliament backs measures to boost EU support for defence investment

Major EU funding programmes to be amended to facilitate spending on defence projects

Ukraine’s defence industry to benefit from European Defence Fund

Horizon Europe amendment without prejudice to outcome of upcoming negotiations on the EU’s long-term budget

Part of the ReArm Europe plan, the measures aim to strengthen Europe’s defence technological and industrial base by channelling EU funding to defence.

The legislation adopted on Tuesday, already agreed with Council, will allow more EU funding to be directed towards defence-related investment by amending the rules for existing EU programmes, such as the Strategic Technologies for Europe Platform, Horizon Europe, the European Defence Fund, the Digital Europe programme and the Connecting Europe Facility.

During negotiations with Council over the bill, Parliament widened the scope of the measures to include the objective of enhancing resilience in the face of ongoing hybrid attacks and foreign interference. MEPs also advocated for the legislation to allow for more support for Ukraine’s defence industry, and secured the country’s participation in the European Defence Fund.

The Horizon Europe programme for research will support civil applications with potential military applications (dual use), while also advancing civilian applications. “Defence technologies” will be added as a fourth strategic sector under the Strategic Technologies for Europe Platform (STEP). Support should be extended to small and medium-sized companies, including start-ups and small mid-caps that would otherwise struggle to secure financing. The legislation will also allow EU funding for dual-use transport infrastructure under the Connecting Europe Facility (CEF), including military mobility corridors, where the Commission will be able to set conditions relating to the country of origin of the equipment, goods, supplies or service to be used.

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“The EU is finally adapting its tools to today’s security reality. This is not about new budgets, but about using existing programmes in a smarter, more strategic way. Parliament secured key priorities - including Ukraine’s participation in the European Defence Fund and stronger support for defence-relevant innovation - while safeguarding core principles. This sets an important precedent for how Europe should approach defence investment going forward. The tools are now in place; delivery must follow”, said lead MEP Rihard Kols (ECR, Latvia).

Next steps

The text was adopted in Parliament by 519 votes to 119, with 25 abstentions. It must now be formally endorsed by Council, before publication in the Official Journal and entry into force.

Background

The European Commission’s proposal, presented on 22 April 2025, aimed to boost defence-related investment within the EU budget as part of the ReArm Europe plan. Responding to escalating geopolitical threats, the text sought to strengthen Europe’s defence technological and industrial base with funding from existing budgets. It followed the joint white paper “European Defence - Readiness 2030”, which was about enhancing the EU’s strategic autonomy and competitiveness in defence.