Home » Commission moves towards ‘Military Schengen' and transformation of defence industry

Commission moves towards ‘Military Schengen’ and transformation of defence industry

November 20, 2025 by Leave a Comment
Facebook X LinkedIn WhatsApp Objective is to facilitate up to €800 billion in defence investment over four years EU-wide time limit for the issuing of permits for defence projects Easier procedures for intra-EU transfers and procurement Simplified eligibility procedures for the European Defence Fund and specific measures for testing projects and actions in Ukraine On Monday, MEPs from four committees approved new proposals to accelerate defence investment and improve the EU’s responsiveness in the face of security challenges. The set of legislative files, part of the so-called “Omnibus V” package of EU simplification measures, aims to speed up the approval of permits for defence projects and the export of defence equipment between EU countries, simplify security and defence procurement and EU cooperation on defence contracts, ensure that EU chemical regulations accommodate defence needs, and simplify the implementation of the European Defence Fund. These proposals also aim to facilitate up to €800 billion in defence investment over the next four years under the ReArm Europe Plan/Readiness 2030, allowing member states and the industry to react more effectively in response to escalating security challenges. Acceleration of permit-granting for defence readiness projects Agreeing on the need to accelerate permit-granting procedures for defence projects, such as the construction of new industry plants or expansion of existing facilities, MEPs want an EU-wide default time limit for permit decisions to be set at 50 working days. They say, however, that member states must be able to grant extensions of up to 25 working days for large projects and by 50 working days if a project is of exceptional complexity, raises exceptional risks for health, safety or environment, or specific national security clearance is required. Such extensions will be communicated to the project promoter, accompanied by an explanation of their reasoning and an expected decision date. If national authorities do not follow up by the applicable deadlines, the principle of tacit approval should apply, MEPs argue. The report also calls on EU countries to establish single points of contact for defence project promoters, with the digital tracking of applications, annual reporting to the Commission on permit activity and SME support, and EU monitoring of tacit approvals to ensure transparency and consistent implementation. Intra-EU transfers of defence-related products and simplified procurement MEPs back the Commission's approach to simplify intra-EU transfers and procurement of defence-related products. To speed up intra-EU transfers of defence products, EU countries should introduce more exemptions to often complex transfer licensing schemes, in particular transfers concerning the same company, and use simpler licensing arrangements (so-called general transfer licenses) to support innovation and the emergence of disruptive technologies. MEPs also stress the importance of facilitating transfers of defence products needed to implement EU funded projects. Members support a proposal to use the simpler so-called negotiated procedure (direct talks with suppliers, often bypassing open tenders, for urgent needs) for certain common procurements and innovative products and services, e.g. replenishing depleted stocks more quickly. When it comes to this procedure, MEPs want the use of components originating outside EU, EEA EFTA countries, Ukraine and countries that are part of a security and defence partnership with the EU to be limited to 35% of the estimated cost of the final product They also favour changing the rules so that only larger contracts are subject to existing EU procurement rules, allowing countries to focus their resources on the most critical contracts, and of relaxing the rules so that a contracting authority from one EU member state can join the procurement process of another. Facilitating defence investments and conditions for defence industry In the text, MEPs agree with proposals to simplify the management and implementation of the European Defence Fund (EDF). The committees backed reducing reporting and documentation requirements to boost the participation of SMEs and mid-sized businesses in the fund. They also propose simplifying the list of actions which can be eligible for EU funding and clarify that projects and actions funded by the EDF can be tested in Ukraine. MEPs further clarify how EU’s environmental and chemicals legislation, such as REACH, can apply to defence activities, saying that EU countries already enjoy flexibility in the use of existing exemptions to achieve defence readiness objectives. The have also added provisions for projects where production lines are used for both defence and civilian purposes. Quotes Quotes from committee chairs and co-rapporteurs are available here. Votes results The text on the acceleration of permit-granting for defence readiness projects was approved by 62 votes in favour, 6 against with 11 abstentions. The text on intra-EU transfers of defence-related products and simplified procurement was approved by 59 votes in favour, 13 against with 7 abstentions. The text on facilitating defence investments and conditions for defence industry was approved by 137 votes in favour, 30 against with 21 abstentions. Next steps Parliament’s plenary will have to endorse the adopted positions during a forthcoming session before negotiations with the incoming Cypriot Presidency of the Council can start on the final shape of the legislations. Background The EU’s Defence Readiness Omnibus package of proposals was presented by the Commission in June 2025. It is designed to simplify regulations and remove administrative hurdles to boost the European defence industry. It aims to speed up defence investments, enhance cooperation, and strengthen the European defence technological and industrial base (EDTIB) by making rules for procurement, financing, cross-border collaboration and permitting more flexible and efficient. It includes proposals for two regulations and one directive, as well as drafts of delegated regulations.

This article is brought to you in association with the European Commission. To make it easier for troops, equipment and military assets to move quickly and smoothly across Europe, the European Commission and the High Representative step up defence readiness, focusing on preparedness, with a military mobility package: new Regulation on military mobility and Joint Communication. […]

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