MEPs call for common defence market and action on flagship EU defence projects 

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• Parliament sets out its vision for a stronger and more integrated EU single market for defence 
• “Buy European” approach recommended to strengthen Europe’s defence industry 
• Clearer objectives, governance, timelines and financing of European Readiness Flagship projects necessary 

On Wednesday, Parliament adopted its proposals to build a genuine EU single market for defence and close critical EU defence capability gaps.

In a first report, MEPs set out a vision for a stronger and more integrated EU single market for defence, to build credible deterrence and strengthen the European defence technological and industrial base (EDTIB). They call for increased and long-term EU funding, common procurement and life-cycle management, simplified regulations, and incentives for cross-border integration to reduce dependence on non-EU suppliers. The report argues that this would result in more efficient use of defence spending, stronger competitiveness and improved strategic sovereignty and resilience.

To break down market barriers, MEPs favour a “buy European” approach to defence procurement to strengthen the EDTIB, make demand more predictable, boost research and development (R&D) investment, and scale up production. Ukraine should be treated as an integral part of the EU defence market. The report also highlights the need to reform defence procurement rules, improve the implementation of existing directives, and simplify intra-EU transfers of defence products through harmonised licensing, certification, and mutual recognition of security clearances. MEPs stress the need to safeguard fair competition and avoid excessive national subsidies that could fragment the single market, especially harming small and medium-sized enterprises and smaller EU member states.

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“In a new world order dominated by great powers, a European single market for defence is not an ambitious ideal – it is an urgent necessity. Only by fully exploiting the potential of the single market can we create a defence system in which every euro invested delivers maximum innovation, security and cost-effectiveness. Europe’s autonomy begins with a single market for defence. ”, said rapporteur Tobias Cremer (S&D, Germany)

The report was adopted by 393 votes in favour and 169 against, with 67 abstentions.

Recommendations for flagship European defence projects of common interest

In a second report, Parliament stresses that EU member states are facing serious and persistent defence capability gaps – particularly in air and missile defence, artillery, missiles and ammunition, drones and counter-drone systems, strategic enablers (including for space and critical infrastructure), military mobility, cyber, artificial intelligence, electronic warfare, and ground and maritime combat. These gaps, MEPs say, significantly weaken the EU’s ability to deter threats and sustain large-scale, prolonged military operations amid growing risks of hybrid and conventional warfare. Critical capability shortfalls should be addressed, for instance, through enhanced European cooperation on strategic and industrial matters, coordinated planning, and targeted investment to ensure defence readiness. The report meanwhile acknowledges the efforts already made by stakeholders within the European defence technological and industrial base.

MEPs also call on participating EU member states to move swiftly to launch European readiness flagship projects under the Defence Readiness Roadmap 2030. On the European Commission’s flagship initiative proposals – the European Drone Defence Initiative, the Eastern Flank Watch, the Air Defence Shield, and the Defence Space Shield – they urge the Commission to clarify the objectives, governance, timelines and financing. These flagship projects are presented as key tools to close capability gaps, strengthen the EDTIB, align national efforts with EU and NATO priorities, and advance towards a genuine European defence union.

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“ Conflicts today present an entirely new face and entirely new threats. New technologies are transforming strategies, leading towards the miniaturization and decentralization of systems, as drones, AI-enabled weapons, smart mines, and portable missile systems are proving. Even the role of human power is changing. What Europe can do rapidly, and shared by all Member States, is to strengthen the development of technologies in order to create a common architecture—an integrated system of command, control, communication, intelligence, surveillance, and reconnaissance—capable of enabling European forces to act together efficiently and coherently, creating joint operations among all states and with NATO”, said rapporteur Lucia Annunziata (S&D, Italy).

The report was adopted by 448 votes in favour and 122 against, with 38 abstentions.

Background

Both reports were prepared by MEPs on the Committee on Security and Defence.