Boosting EU’s Defense Capabilities

In a significant development on November 5, 2025, the European Parliament and the Council reached an informal agreement to enhance EU support for security and defense investments, marking a pivotal step in strengthening Europe’s defense technological and industrial base. This agreement, part of the broader ReArm Europe Plan, aims to amend major EU funding programs to facilitate increased spending on defense projects, including the participation of Ukraine’s defense industry in the European Defence Fund.

The legislation targets several existing EU programs such as the Strategic Technologies for Europe Platform (STEP), Horizon Europe, the European Defence Fund (EDF), the Digital Europe program (DEP), and the Connecting Europe Facility (CEF). These amendments will channel EU funding towards defense, focusing on areas like resilience, critical infrastructure protection, disaster response, and election integrity. Furthermore, the measures extend support to non-bankable small and mid-sized enterprises (SMEs), including startups engaged in defense technology.

Lead MEP Rihard Kols (ECR, Latvia) emphasized the significance of the agreement, stating, “This mini-omnibus is more than a legislative fix – it’s a clear signal that the EU is finally starting to treat defence investment with the seriousness the times demand.” The legislation also includes provisions for dual-use transport infrastructure, supporting both civilian and military applications, which will be crucial for enhancing military mobility across the EU.

The next steps involve the endorsement of this agreement by both the Parliament and the Council to become law. The Industry, Research and Energy committee is scheduled to vote on the text on November 20, 2025, with a subsequent submission to the whole House anticipated before the year’s end. This legislative move follows the European Commission’s proposal presented on April 22, 2025, aimed at boosting defense-related investments in response to escalating geopolitical threats and enhancing the EU’s strategic autonomy and competitiveness in defense.