NEWS & INSIGHTS

Up-to-date.

June 2025 – As part of the European Commission’s ReArm Europe Plan/ Readiness 2030, European Union (“EU”) Member States will mobilise EUR 800 billion over the next four years to finance a massive ramp-up of their defence spending. On 17 June 2025, the Commission adopted the Defence Readiness Omnibus (“Omnibus”) to facilitate these defence investments.

The Omnibus is the response to the call of the European Council from March this year[1] for the Commission to enable the simplification of both legal and administrative frameworks relevant to defence readiness, in line with the 2022 Versailles declaration by EU leaders calling for Member States to bolster their defence capabilities following the Russian invasion of Ukraine.

In its March 2025 memorandum, the European Council emphasised that Europe must become more sovereign, more responsible for its own defence, and also better equipped to be able to act and deal autonomously with existing and future challenges. To that end, the EU must reduce its strategic dependencies and address its critical capability gaps as well as strengthen its defence technological and industrial base to better supply equipment, both in terms of quantity and pace. These goals necessitate a substantial increase in expenditure on security and defence.

The Omnibus reflects the priorities set out in the White Paper for European Defence-Readiness 2030.[2] The three key areas of action are:

• supporting the defence industry, among others, by simplifying regulations and streamlining industrial programmes;
• deepening the single defence market and accelerating the transformation of defence through disruptive innovations such as AI and quantum technology;
• enhancing the EU’s readiness for worst-case scenarios by improving military mobility, stockpiling, and fostering operational cooperation across the EU.

Apart from spending more on defence, the Member States need to spend better, work together, and prioritise European companies in their investments. The EU supports this by helping Member States to coordinate their defence investments and their defence equipment development.

Measures of the ReArm Europe Plan/Readiness 2030 include:

• activating the national escape clause of the Stability and Growth Pact, allowing Member States to increase defence spending;
• launching a EUR 150 billion loan instrument – Security Action for Europe (“SAFE”);
• supporting the European Investment Bank in widening the scope of its lending to defence and security projects and accelerating the Savings and Investment Union to mobilise private capital.

The Omnibus proposes different amendments and measures in relation to defence and non-defence legislation:

• European Defence Fund (“EDF”) – simplification, faster granting process, predictability.
• Defence Procurement – joint procurement of at least three Member States, off-the-shelf purchases to restock, flexibility in framework agreements, and doubled thresholds for supply and service contacts.
• Intra-EU Transfers of Defence Products – easier authorisation for transfers.
• Fast-track system for permitting for defence-related infrastructure projects.
• Clarifications in relation to exemptions / derogations under environmental and chemicals legislation.
• Adjustments to eligibility criteria under InvestEU and dedicated guidance on aligning defence readiness with sustainable finance principles.

The Omnibus has been submitted to the European Parliament and the Council for examination under the ordinary legislative procedure. On 23 June 2025, the Council indicated that it is ready to start negotiations with the European Parliament regarding the establishment of the European Defence Industry Programme (“EDIP”) based on the Omnibus proposed by the Commission.[3]

The Council emphasised that its position aligns with the Commission proposal for a voluntary legal framework to foster long-term cooperation between Member States throughout the entire lifecycle of a defence product (Structure for European Armament Programme – “SEAP”). Regarding the Security of Supply (“SOS”) framework, the Council supports solidarity between Member States, with consideration of the specific characteristics of the defence sector and national prerogatives. For the governance process of the SOS framework, the Council proposes to set up a Defence Security of Supply Board composed of Member States, the Commission, the High Representative and the European Defence Agency.

The agreement on the Council's negotiating mandate allows the presidency to start negotiations with the European Parliament. Considering the urgency, we can expect an accelerated legislative process.