Changes from plenary report to adopted text

(b) point (17) is replaced by the following:

Change 26

Changed‘(17) ‘pre-commercial“pre-commercial procurement’procurement” means the procurement of research and development services involving risk-benefit sharing under market conditions where there is a clear separation of the research and development services procured from the deployment of commercial volumes of end-products;’;

Change 27

Changed(ba)(c) the following point (18a) is inserted:

Change 28

Changed‘(18 a)‘(18a) ‘ex“ex aequo proposals’proposals” means two or more proposals that have obtained the same evaluation score following a call for proposals;’;

Change 29

Removed(1a) in Article 3(2) sub-paragraph 2 is replaced by the following:

Added▌

Removed‘Such collaboration shall be consistent with defence capability priorities commonly agreed by Member States within the framework of the Common Foreign and Security Policy (CFSP) and in particular in the context of the CDP, and shall address the critical capability gaps referred to in the White Paper for European Defence – Readiness 2030, and the Preserving Peace – Defence Readiness Roadmap 2030.’;

Added(2) in Article 4, the following paragraph is added:

Removed(2) in Article 4 the following paragraph 6 is added:

Added‘6. The budgetary commitments relating to the Fund which cover activities extending over more than one financial year may be broken down over several years into annual instalments.’;

Removed‘6. The budgetary commitments relating to the Programme and which cover activities extending over more than one financial year may be broken down over several years into annual instalments. When applying such multiannual budgetary commitments, the Commission shall ensure that equal access for new applicants is maintained and that the participation of projects at earlier stages of development is not prejudiced’;

Added(3) Article 6 is replaced by the following:

Removed(2a) Article 5 is replaced by the following:

Added‘Article 6 Support for disruptive technologies for defence and research and development actions carried out by SMEs

Removed‘The Fund shall be open to the participation of the following third countries (associated countries):

Added1. The Fund shall support actions that are conducive to developing disruptive technologies for defence and research and development actions carried out by SMEs in the areas of intervention defined in the work programmes referred to in Article 24.

Removed(a) Members of the European Free Trade Association, which are members of the EEA, in accordance with the conditions laid down in the Agreement on the European Economic Area;

Added2. The work programmes shall lay down the most appropriate forms of funding, selection and award criteria and procedures and of implementation for disruptive technologies for defence and research and development actions carried out by SMEs.’;

Removed(b) Ukraine, in accordance with the general principles and general terms and conditions for the participation of Ukraine in Union programmes established in the EU-Ukraine Association Agreement.’

Added(4) in Article 8, paragraph 2 is replaced by the following:

Removed(3) in Article 8(2) the second sentence is deleted;

Added‘2. By way of derogation from paragraph 1 of this Article, specific actions may, in substantiated cases, be carried out under indirect management by bodies as referred to in Article 62(1), point (c), of Regulation (EU, Euratom) 2024/2509 of the European Parliament and of the Council*, under the conditions set out in the work programme.

Removed(4) in Article 9(2) the following second sub-paragraph is inserted:

Removed‘By way of derogation from the first subparagraph, infrastructures, facilities, assets and resources used by recipients and subcontractors involved in the action for testing of a defence product, tangible or intangible component or technology, as referred to in Article 10(3), point (f) may be located or held ▌in Ukraine. This shall not contravene the security and defence interests of the Union and its Member States and, shall be consistent with the objectives set out in Article 3 and shall comply with Articles 20 and 23.’;

Removed(4a) in Article 10(3) the following sub-paragraphs are inserted:

Removed‘(j) research and development activities related to an European Defence Project of Common Interest as identified in accordance with Article 21i(4) of Regulation XXX [EDIP];

Removed(k) activities that aim at significantly accelerating the research and development of defence products or components, where the Council activates the measures in Article 52 of Regulation XXX [EDIP].’;

Removed(5) in Article 11(1) the second sub-paragraph is replaced by the following:

Removed‘In certain duly substantiated and exceptional circumstances, Union funding may also be granted without a call for proposals to a research and development action that has previously received Member State or Union funding following competitive calls for proposals, in accordance with Article 198 of Regulation (EU, Euratom) 2024/2509 of the European Parliament and of the Council*▌first subparagraph, point (e) ▌.

________

* Regulation (EU, Euratom) 2024/2509 of the European Parliament and of the Council of 23 September 2024 on the financial rules applicable to the general budget of the Union (OJ L, 2024/2509, 26.9.2024, ELI: http://data.europa.eu/eli/reg/2024/2509/oj).’;

Change 30

Added(5) in Article 9(6), the third subparagraph is replaced by the following:

Added‘The costs related to those activities shall not be eligible for support from the Fund. However, if the recipients and subcontractors involved in the action cooperate with legal entities established in Ukraine, controlled by Ukraine, or controlled by a Ukrainian entity, for the sole purpose of using their infrastructure, facilities, assets and resources for testing activities referred to in Article 10(3), point (f), the related costs shall be eligible for support from the Fund provided that those costs benefit the funded action and are necessary for strengthening the competitiveness, efficiency and innovation capacity of the EDTIB throughout the Union, as laid down in Article 3.’;

Added(6) in Article 11(1), the second subparagraph is replaced by the following:

Added‘In certain duly substantiated and exceptional circumstances, Union funding may also be granted without a call for proposals in accordance with Article 198 of Regulation (EU, Euratom) 2024/2509, including in cases provided for in the first paragraph, point (e), of that Article.’

(7) Article 12 is replaced by the following:

Change 31

Changed‘Article 12 Award criteria

Change 32

RemovedAward criteria

Added1. In accordance with Article 203 of Regulation (EU, Euratom) 2024/2509, each proposal shall be assessed on the basis of the following criteria:

Removed-1. In accordance with Article 203 of Regulation (EU, Euratom) 2024/2509, each proposal shall be assessed on the basis of the following criteria:

(a) its contribution to excellence in the defence domain, in particular by showing that the expected results of the proposed action present significant advantages over existing defence products or technologies;

Change 33

Changed(b) its quality and efficiency of the implementation of the action;action.

Change 34

Changed1.2. In addition to the criteria mentionedreferred to in paragraph -1,1, each proposal shall be assessed on the basis of one or more of the following criteria, as set out in the work programme:programme, on a call-by-call basis:

▌

Change 35

Changed(a) its contribution to the innovation or potential of disruption of the European defence industry, in particular by showing that the proposed action includes ground-breaking or novel concepts and approaches previously not previously applied in the defence sector;

Change 36

Changed(b) its contribution to the competitiveness of the European Defence Technological and Industrial BaseEDTIB by creating new market opportunities across the Union and beyond and accelerating the growth of companies throughout the Union;

Change 37

Changed(c) its contribution to reducing dependency on non-Union sources and strengthening security of supply of defence products throughout the Union in response to identified risks;Union;

Change 38

Changed(d) its contribution to cross-border cooperation between legal entities established in Member States or associated countries, in particular with SMEs and mid-caps that bring substantial added-value to the action, as recipients, as subcontractors involved in the action or as other legal entities in the supply chain;

▌

(e) its contribution to increasing efficiency across the life cycle of defence products and technologies, including cost-effectiveness and the potential for synergies in the procurement, maintenance and disposal processes;

(f) its contribution to the further integration of the European defence industry throughout the Union, in particular regarding joint use, ownership or maintenance of the final product or technology;

Change 39

Changed(g)its(g) its contribution to addressing the needs of the Member States and the associated countries with the highest exposure to the risk of materialisation of conventional military threats.

Change 40

Changed2.3. The work programme shall lay down details concerning the selection procedures, and the application of the award criteria listed in paragraph 1. This shall2, includeincluding any weighting of the criteria, scoring thresholds and, where relevant, rules for dealing with ex aequo proposals, taking into consideration the objectives of the call for proposals. The use of subsets of criteria and their respective weighting shall be clarified in the call for proposal, ensuring full transparency.’;proposals.’;

▸4 unchanged paragraphs

(8) Article 13 is amended as follows:

(a) paragraph 2 is replaced by the following:

‘2. By way of derogation from paragraph 1 of this Article, support from the Fund shall not exceed 20 % of the eligible costs for activities referred to in Article 10(3), point (e), without prejudice to higher funding rates which may apply in accordance with paragraph 3 of this Article.’;

(b) in paragraph 3, points (a) and (b) are replaced by the following:

Change 41

Changed‘(a) an action developed in the context of a project of PESCO, as established by Council Decision (CFSP) 2017/2315,2017/2315*, or in the context of a Structure for European Armament Programme SEAP,(SEAP), as established by Regulation XXX(EU) [EDIP],2025/2643 of the European Parliament and of the Council**, may benefit from a funding rate increased by an additional 10 percentage points;’;points;

Change 42

Changed‘(b)(b) an activity may benefit from an increased funding rate, as referred to in this point, where at least 10 % of the total eligible costs of the activity are allocated to SMEs established in Member States or in associated countries and which participate in the activity as recipients, subcontractors or other legal entities in the supply chain. For SMEs participating as recipients, administrative requirements shall be proportionate to their size and role. The Commission may establish simplified reporting templates and reduced documentation requirements for SMEs.

Change 43

ChangedThe funding rate may be increased by percentage points equivalent to the percentage of the total eligible costs of the activity allocated to SMEs established in Member States or in associated countries in which recipients that are not SMEs or mid-caps are established and which participate in the activity as recipients, subcontractors or other legal entities in the supply chain, up to an additional 510 percentage points.