Brussels: Negotiators from the EU Council and the European Parliament have reached a provisional agreement on a comprehensive package of measures designed to strengthen Europe's defense industry and enhance military readiness. This agreement aims to achieve these objectives by cutting red tape and accelerating investment.
According to Anadolu Agency, the new legislation is set to simplify defense procurement processes, expedite permit approvals, and facilitate cross-border transfers of defense-related products. This initiative will also make it easier for companies to access EU defense funding, as highlighted in a statement by the EU Council.
The agreement introduces streamlined procedures under the European Defense Fund (EDF), aiming to reduce administrative burdens for applicants while increasing support for small and medium-sized enterprises (SMEs). Lawmakers have also agreed to increase funding incentives for projects involving SMEs and to maintain access rights for member states that co-finance EDF projects, all while safeguarding companies' intellectual property.
A significant component of the package is the establishment of a harmonized permit-granting framework for defense readiness projects. Under the new agreement, authorities will generally have 102 working days to process permits. Applications could be automatically approved if no decision is made within this timeframe, although exceptions may apply in cases involving serious risks to public health or national security.
The deal also aims to reduce delays in defense procurement and intra-EU transfers of military equipment. It raises procurement thresholds to reduce administrative burdens and introduces new flexibility for joint procurement and framework agreements. Additionally, two new mandatory general transfer licenses will be created to facilitate transfers between certified defense suppliers and recipients, as well as within industrial partnerships across the EU.
The provisional agreement will require formal approval from both the Council and the European Parliament before it can become law.