The package of legislative proposals, forming part of the so-called “Omnibus V” EU simplification measures, is intended to accelerate the approval of permits for defence-related projects and the export of defence equipment between EU countries. It also seeks to simplify security and defence procurement procedures and EU cooperation on defence contracts, ensure that EU chemical regulations adequately reflect defence requirements, and simplify the implementation of the European Defence Fund (EDF).
The proposals are designed to support up to €800 billion in defence investment over the next four years under the ReArm Europe Plan/Readiness 2030 initiative, enabling member states and the defence industry to better respond to growing security challenges.
Acceleration of permit-granting for defence readiness projects
For the acceleration of permit-granting procedures for defence projects, such as the construction of new factories or the expansion of existing facilities, co-legislators agreed on an EU-wide default period for permit decisions of 42 working days (as of the acknowledgement of a completed application). The deal, however, states that national authorities can on a case-by-case basis extend the time limit a maximum of two times by up 60 days in exceptional circumstances, e.g. for complex projects or where there are risks to the environment or the health and safety of workers and additional time is necessary to resolve them. In such cases, the total duration of the permit-granting process shall not exceed 102 working days.
Such extensions will be communicated to the project promoter, accompanied by an explanation and an expected decision date. If national authorities do not follow up by the applicable deadline, the principle of tacit approval should apply. National authorities should then within 8 working days from the expiry of the deadline inform project promoters and specify the requirements which these permits are subject to.
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
Included in the agreement are measure to remove regulatory obstacles to facilitate and accelerate public procurement in defence and intra-EU transfers of defence-related products.
The deal introduces a new general transfer licence for defence-related products that should make it easier for defence companies to operate across EU borders. Member states will be required to publish these licences, giving industry a more predictable framework for intra-EU transfers.
On defence procurement, the agreement updates and raises the threshold for the application of EU procurement rules, extends the maximum duration of framework agreements from seven to ten years, and introduces greater flexibility for member states to conduct occasional joint procurement.
Parliament and Council also adopted a joint statement committing to examine in the future, empowering the Commission to facilitate the intra-EU transfers of defence products, and to consider the EU preference criteria in procurement.
Both institutions acknowledged the urgency of decisively ramping up Europe’s defence capacity by 2030, strengthening the European defence technological and industrial base (EDTIB), supporting SMEs, removing procurement bottlenecks, and ensuring a well-functioning EU market for defence products — including intra-EU access to defence supply chains.
Facilitating defence investments and conditions for defence industry
When it comes to facilitating investments and conditions for defence industry, co-legislators agreed to simplify the management and implementation of the European Defence Fund (EDF). They updated and clarified the list of award criteria that defence projects have to meet to obtain EDF funding, prioritising – as proposed by MEPs – projects that are able to showcase the highest standards of excellence, quality and efficiency.
They also updated the rules related to increased funding under the EDF, both with regard to eligible actions and funding rates, to enable further financial support to activities involving small- and medium size enterprises (SMEs). Moreover, at the request of MEPs, co-legislators agreed to extend the increased funding under the EDF, already applicable to PESCO projects, to actions developed in the context of a Structure for European Armament Programme (SEAP), which was established as part of the European Defence Industry Programme (EDIP). To strengthen cooperation with Ukrainian entities, MEPs and Council negotiators agreed to allow costs related to testing in EU candidate country Ukraine to be eligible for EDF funding.
Finally, the agreement between the Parliament and Council also confirms that EU countries can apply certain exemptions to EU environmental and chemical regulations in the interest of defence. As requested by the MEPs, these exemptions will be allowed only when justified.
Quotes
The rapporteurs’ statements will be available here.
Rapporteurs on acceleration of permit-granting for defence readiness projects: Lucia Yar (Renew Europe, Slovakia) and Henrik Dahl (EPP, Denmark)
Rapporteurs on the simplification of intra-EU transfers of defence-related products and simplified procurement: Pekka Toveri (EPP, Finland) and Anna-Maja Henriksson (Renew Europe, Finland)
Rapporteurs on defence readiness and facilitating defence investments and conditions for defence industry: Sven Mikser (S&D, Estonia), Aura Salla (EPP, Finland) and Pierfrancesco Maran (S&D, Italy)
Next steps
The provisional agreements on the legislative files need to be formally adopted by both the Parliament and Council before they can enter into law.
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