EU reaches provisional agreement to simplify defence procurement and support industry

Brussels, Belgium. The Council of the European Union said on Wednesday it reached a provisional agreement with European Parliament negotiators on new legislation to simplify defence and security procurement procedures, facilitate defence investments and strengthen Europe’s defence industry.

The agreement introduces measures to reduce administrative delays in defence procurement, licensing procedures, reporting obligations and cross-border cooperation, according to the council.

Measures in the agreement

The provisional agreement includes measures to simplify the management and implementation of the European Defence Fund (EDF), while clarifying how EU environmental and chemicals legislation applies to activities linked to defence preparedness.

Under the agreed text, administrative requirements for applying for EDF funding will be reduced, support for small and medium-sized enterprises will be strengthened and greater predictability will be introduced in the fund’s implementation.

The agreement also preserves the ability of European public bodies, including the European Defence Agency, to act as central purchasing authorities.

Access rights and industry support

The council said member states that co-finance EDF projects will gain access rights to project results, while intellectual property rights belonging to industrial partners will continue to be protected.

Additional incentives will be introduced to encourage SME participation in EDF projects through higher funding rates for projects involving smaller companies.

Cypriot presidency reaction

In a statement, Deputy Minister for European Affairs Marilena Raouna said the agreement simplifies rules for defence-related projects and boosts support for the European defence industry.

She described the deal as an important development in two key priorities of the Cypriot presidency of the Council of the EU: strengthening Europe’s defence readiness and enhancing competitiveness.

“Defence readiness and competitiveness go hand in hand for a strategically autonomous Europe,” she said.