The Council of the European Union adopted new legislative instruments and financial support to boost defence capabilities, industry and readiness on 9 October 2026. This follows the European Commission’s Readiness 2030 White Paper, published earlier this year, on which we previously reported.
Context
Several comprehensive (omnibus) legislative packages are making their way to bolster EU competitiveness across various fields. Omnibus V aims to increase defence readiness, capabilities and investment across the EU in response to the evolving global security landscape and its challenges.
The main objective is to strengthen European security by enhancing defence production, supporting innovative technologies, simplifying related procurement and speeding up the necessary investments.
Major developments
- Fast-tracking permitting for defence-related projects (such as new manufacturing facilities or expanded training areas), including a reduced permit-granting process (42 working days, which may be extended to a maximum of 102 working days in certain specific circumstances), tacit approval if no decision is taken within the applicable time limit (subject to certain limited exceptions), and a single point of contact to streamline the process and ensure prompt action.
- Enhancing production to support defence readiness, strengthening the defence industry and relation to environmental and chemicals legislation, with possible exemptions.
- Easing intra-EU transfers of defence-related products (with possible exemptions from prior authorisation, notably for purchases by public authorities) and simplifying security and defence procurement (in particular through substantially raised thresholds for the application of the Defence Procurement Directive or for modifications to existing contracts), alongside the pending broader reform of the general public procurement directives.
Separately, the Council adopted a new financial support instrument for agile and rapid defence innovation (AGILE): the €115 million funding allocation is designed to provide swift and targeted financial support to SMEs developing emerging and disruptive defence products.
What next?
Permitting, production and financial aid are covered by a regulation and will enter into force shortly, 20 days after their publication in the Official Journal on 21 October 2026. A call for proposals for AGILE financial support is also expected in early 2027.
The amending directive on intra-EU transfers and security and defence procurement is to be implemented by 24 November 2027.
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