EU Accelerates Defence Readiness with €800 Billion Investment and Simplified Permitting

Dr Steven Brennan
Dr Steven Brennan
3 min readAI-drafted, expert reviewed
Fighter jet

On 15 December 2025, Members of the European Parliament (MEPs) endorsed a sweeping package of proposals to strengthen Europe’s defence readiness. The measures aim to mobilise up to €800 billion in defence investments over four years, streamline permitting for defence projects, and simplify cross-border transfers and procurement of defence-related products.

Key Insights

The initiative is designed to improve the EU’s ability to respond rapidly to security challenges by reducing administrative delays, particularly those linked to permitting and compliance with EU chemical and environmental regulations.

Streamlined Permits and EU-Wide Timelines

Central to the “Omnibus V” legislative package is the introduction of a standardised 50-day time limit for issuing permits on defence projects across the EU. In exceptional cases—such as health, safety, or national security—extensions of up to 25 or 50 days are permitted.

To ensure transparency, member states must justify any delays. MEPs have also pushed for the creation of national contact points, improved digital reporting, and closer monitoring of permit approvals.

Simplified Transfers and Procurement Within the EU

The proposals call for the wider use of general transfer licences to ease intra-EU movement of defence equipment. This includes exemptions from complex licensing for intra-company transfers and projects using disruptive technologies.

Additionally, a shift towards the “negotiated procedure” for urgent or innovative procurement could allow faster restocking of critical defence supplies. MEPs also want to cap the use of non-EU components in EU-funded projects to 35% of the product’s estimated cost.

Implications for Chemicals Regulation and Industry Funding

MEPs clarified that existing EU chemicals and environmental rules—including REACH—can be applied flexibly for defence activities. This provides important leeway for manufacturers who must adapt production lines for dual civil-defence use.

The text also mandates clearer reporting and access to funding for SMEs via the European Defence Fund. Projects and actions under this fund may also be tested in Ukraine, enhancing operational readiness in a live conflict context.

Vote Outcomes and Next Steps

The proposals received strong parliamentary backing:

  • Permit-granting acceleration: 62 in favour, 6 against, 11 abstentions
  • Intra-EU transfers and procurement: 59 in favour, 13 against, 7 abstentions
  • Defence investments and industry conditions: 137 in favour, 30 against, 21 abstentions

The European Parliament plenary must still formally approve the legislation, after which negotiations with the incoming Cypriot Presidency of the Council will commence.

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