Changes from report parliamentary committee draft to plenary report

DRAFT EUROPEAN PARLIAMENT LEGISLATIVE RESOLUTION

on the proposal for a regulation of the European Parliament and of the Council amending Regulations (EU) 2021/694, (EU) 2021/695, (EU) 2021/697, (EU) 2021/1153, (EU) 2023/1525 and 2024/795, as regards incentivising defence-related investments in the EU budget to implement the ReArm Europe Plan

Changed(COM(2025)0188 – C10-0070/2025C100070/2025 – 2025/0103(COD))

▸6 unchanged paragraphs

(Ordinary legislative procedure: first reading)

The European Parliament,

– having regard to the Commission proposal to Parliament and the Council (COM(2025)0188),

– having regard to Article 294(2) and Articles 114, 164, 172, 173, Article 175, third paragraph, Articles 176, 177 and 178, 182, 183, 188, 192(1) of the Treaty on the Functioning of the European Union, pursuant to which the Commission submitted the proposal to Parliament (C10-0070/2025),

– having regard to Article 294(3) of the Treaty on the Functioning of the European Union,

– having regard to the budgetary assessment by the Committee on Budgets,

Changed– having regard to the opinion of the European Economic and Social Committee of ...,18 September 2025,

Change 1

Changed– having regard to the opinionafter ofconsulting the Committee of the Regions of ...,Regions,

Changed– having regard to Rules 60 and 58 of its Rules of Procedure,

– having regard to the opinions of the Committee on Security and Defence and the Committee on Transport and Tourism,

Changed– having regard to the report of the Committee on Industry, Research and Energy (A100000/2025),(A10-0172/2025),

1. Adopts its position at first reading hereinafter set out;

2. Calls on the Commission to refer the matter to Parliament again if it replaces, substantially amends or intends to substantially amend its proposal;

3. Instructs its President to forward its position to the Council, the Commission and the national parliaments.

Change 2

RemovedRecital 1: (1) The unprecedented geopolitical instability and the rapid deterioration of regional and global threat levels, in particular Russia’s war of aggression against Ukraine, its continued aggression rhetoric toward the Union, and threat of its conventional military attack against the Union’s Eastern Flank, require an urgent and significant step up of the Union spending on research and development, industrial capacity and development of infrastructures connected with security and defence. As identified in the Joint White Paper for European Defence Readiness 2030, the Union should do more to support the urgent need to increase European defence-related investments with the Union budget. Member States must significantly increase their defence spending to strengthen Europe’s deterrence and defence posture not only by modernising armed forces and replenishing military stockpiles, but also by investing in critical infrastructure, joint capabilities, and defence technological innovation. Sustained and increased defence expenditure is indispensable for the safeguarding of European sovereignty, upholding collective security commitments within the North Atlantic Treaty Organization (NATO), and ensuring the Union's capacity to respond swiftly and decisively to the full spectrum of military and hybrid threats.

AddedAMENDMENTS BY THE EUROPEAN PARLIAMENT*

RemovedRecital 1 a (new): (1a) In extending Union funding programmes to cover defence-related projects, robust safeguards must be in place to protect the Union’s strategic security interests, particularly in cooperation with third-country entities, where participation may require strict eligibility controls and exclusions.

Addedto the Commission proposal

RemovedRecital 1 b (new): (1b) The extension of Union funding programmes should be implemented with the full recognition that NATO remains a cornerstone of Europe’s collective defence, while the Union strengthens its role in enhancing resilience, supporting the capacity of the defence industry, and contributing to the security and territorial integrity of its Member States, in full complementarity with NATO. In light of the persistent Russian threat, its full-scale aggression, and the intensifying use of hybrid, cyber and subversive tactics, the Union must strengthen practical cooperation with NATO, NATO members, and trusted, like-minded partners, particularly in defence research, capability development, and military mobility. Closer coordination between the Union and NATO not only avoids duplication and enhances interoperability but also reinforces a united transatlantic response to common security challenges.

Added---------------------------------------------------------

RemovedRecital 3: (3) While support to technologies having defence implications is possible today under the 3 existing strategic sectors identified in STEP, it appears necessary to increase the potentialities of development of research, industry and innovation in the defence area by setting out a fourth strategic sector in STEP focussed on defence technologies and security technologies. This new strategic sector should ensure that the STEP incentives are used to increase Union funding in defence technologies and contribute to European competitiveness in line with STEP objectives. Defence technologies should be understood as those referred to in the Annex to Directive 2009/43/EC and include, in particular, technologies in the areas identified by the European Council on March 6th 2025, namely: air and missile defence, artillery systems, including deep precision strike capabilities, missiles and ammunition, drones and anti-drone systems, strategic enablers, including in relation to space and critical infrastructure protection, military mobility, cyber, artificial intelligence and electronic warfare. Security technologies should be understood to refer to technologies intended to support the prevention of, detection of, protection against, response to, and recovery from, security threats, such as terrorism, hybrid threats, organised crime, and to support border management, critical infrastructure protection, cybersecurity and disaster-resilient societies. The development of such technologies is ess…

AddedProposal for a

RemovedRecital 5: (5) Horizon Europe established by Regulation (EU) 2021/695 of the European Parliament and of the Council4 is the Union’s key funding programme for research and innovation. The European Innovation Council (EIC) Accelerator established by that Regulation provides support, in particular, for innovations with breakthrough potential and of a disruptive nature with scale-up potential that may be too risky for private investors. SMEs operating within the defence sector require financing for the commercialization of innovative products. However, these companies face higher barriers to access finance compared to SMEs in other sectors. Whereas the support to defence research and development is done through the European Defence Fund (EDF), which is a specific programme of Horizon Europe, it is appropriate to open the EIC Accelerator for actions with potential dual-use applications. Support to scale-up under the EIC Accelerator should also be extended to non-bankable SMEs, including start-ups and non-bankable small mid-caps, including entities which have already received support from the Accelerator carrying out breakthrough and disruptive non-bankable innovation with a focus on defence applications. This justifies a targeted exception to the principle set out in Article 7(1) of Regulation (EU) 2021/695 of the European Parliament and of the Council according to which research and innovation activities under Horizon Europe have an exclusive focus on civil applications while not underminin…

AddedREGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL

RemovedRecital 15: (15) Military mobility is also one of the objectives of the CEF programme. The Joint White Paper for European Defence Readiness 2030 recognised military mobility as an essential enabler for European security and defence and stressed the Union added-value in supporting dual-use infrastructure for mobility. The report of 30 October 2024 commissionned by the Commission and the High Representative of the European Union for Foreign Affairs and Security Policy, entitled ‘Safer Together Strengthening Europe’s Civilian and Military Preparedness and Readiness’ (the Niinistö report)9a specifically refers to the need to intensify further work on priority dual-use transport corridors for military movements and the extension of fuel-supply chains for the armed forces along those corridors, as well as stockpiling and strategic reserves of energy. This position is echoed in NATO statements. In this context, the Commissioner for Defence and Space stated in March 2025 that the Union requires an initial investment of at least EUR 70 billion to adapt its transport and logistics infrastructure for the rapid movement of troops and equipment across Union territory in the event of conflict. The Union should therefore give special consideration to the situation regarding fuel pipelines, storage and other critical infrastructure projects that enhance the security and defence of the Union, particularly along its Eastern Flank, where major infrastructure gaps remain. / 9 https://commission.europa.eu/do…

Addedamending Regulations (EU) 2021/694, (EU) 2021/695, (EU) 2021/697, (EU) 2021/1153, (EU) 2023/1525 and 2024/795, as regards incentivising defence-related investments in the EU budget to implement the ReArm Europe Plan

RemovedThe second part of Recital 15 of the Commission proposal, on the ERDF and Cohesion Fund, is moved to Recital 15b (Amendment 8), and changed to include the pre-financing rate raised to 40 %, as proposed in the amendment on Article 4, paragraph 1, point 4.

Added(Text with EEA relevance)

RemovedRecital 15 a (new): (15a) Moreover, the scope of action in the transport section should be extended to include counter-mobility and territorial defence infrastructure, including dual-use obstacles, fortifications, and rapid deployment systems to reinforce border and territorial defence as part of comprehensive military mobility.

AddedTHE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION,

RemovedRecital 15 b (new): (15b) The mid-term review of the European Regional Development Fund (ERDF) and the Cohesion Fund both established by Regulation (EU) 2021/1058 of the European Parliament and of the Council1a introduced the possibility to invest in defence or dual use infrastructure to foster military mobility benefiting from a pre-financing of 40 % of the amounts programmed and the possibility to apply a Union financing of up to 100 %. In cases where Member States transfer resources allocated to them in shared management to CEF they should benefit from the same conditions on pre-financing and co-financing for dual-use transport infrastructure projects as introduced in the ERDF and Cohesion Fund. In such a case, these amounts should be reserved to projects developing the Military Mobility corridors as identified by the Member States in Military Requirements for Military Mobility within and beyond the Union as well as digital connectivity and capacities. / 1a Regulation (EU) 2021/1058 of the European Parliament and of the Council of 24 June 2021 on the European Regional Development Fund and on the Cohesion Fund (OJ L 231 30.6.2021, p. 60, ELI: ).

AddedHaving regard to the Treaty on the Functioning of the European Union, and in particular Articles 114, 164, 172, 173, Article 175, third paragraph, Articles 176, 177 and 178,182 183, 188, 192(1) thereof,

RemovedThe second part of Recital 15 of the Commission proposal is moved here, and changed to include the pre-financing rate raised to 40 %, as proposed in the amendment on Article 4, paragraph 1, point 4.

AddedHaving regard to the proposal from the European Commission,

RemovedRegulation (EU) 2021/694

AddedAfter transmission of the draft legislative act to the national parliaments,

RemovedArticle 1 – paragraph 1 – point 4, Article 12 – paragraph 5 – paragraph 1 a (new): By way of derogation from the first subparagraph, the restricted calls for proposals and calls for tenders shall be open to the participation of legal entities established in, or controlled by, associated countries that are member countries of the North Atlantic Treaty Organization (NATO) or of the European Free Trade Association. The Commission shall conduct a thorough, risk-based screening of those legal entities, aiming to assess potential security risks to the interests of the Union.

AddedHaving regard to the opinion of the European Economic and Social Committee,

RemovedThis amendment aligns participation rules with the EU’s security interests. It allows entities established in or controlled by NATO and EFTA countries to participate in restricted calls, while ensuring the Commission conducts thorough risk-based screenings to safeguard Union security interests.

AddedHaving regard to the opinion of the Committee of the Regions,

RemovedRegulation (EU) 2021/695

AddedActing in accordance with the ordinary legislative procedure,

RemovedArticle 2 – paragraph 1 – point -1 (new), Article 24 – paragraph 2: (-1) In Article 24, paragraph 2 is replaced by the following: / ‘2. If necessary to achieve their objectives, calls for proposals may, in exceptional cases, be restricted in order to develop additional activities, to add additional partners to existing actions or to protect the Union’s security interests, in particular with regard to projects related to dual-use applications. In addition, the work programme may provide for the possibility for legal entities from low R&I performing countries to join already selected collaborative R&I actions, subject to the agreement of the respective consortium and provided that legal entities from such countries are not yet participating in it.’

AddedWhereas:

Removed(02021R0695)

Added(1) The unprecedented geopolitical instability and the rapid deterioration of regional and global threat levels, in particular Russia’s war of aggression against Ukraine launched in 2014, its continued aggressive rhetoric toward the Union, and the threat of its conventional military attack against the Union’s Eastern Flank, as well as the instability in the Middle East and in the Southern Neighbourhood require an urgent and significant step up of the Union spending on research and development, industrial capacity and development of infrastructures connected with resilience, security and defence. As identified in the Joint White Paper for European Defence Readiness 2030, the Union should do more to support the urgent need to increase European defence-related investments with the Union budget.

RemovedThe amendment allows targeted restrictions to protect Union security interests, especially in sensitive dual-use projects, where uncontrolled access could pose security risks. It ensures that Horizon Europe supports research while safeguarding the Union’s strategic and technological assets.

Added(1a) In addition, Member States are to increase their defence spending to strengthen the Union’s deterrence and defence posture not only by modernising armed forces and replenishing military stockpiles, but also by investing in critical infrastructure, joint capabilities, and defence technological innovation. Sustained and increased defence expenditure is indispensable for the safeguarding of European sovereignty, upholding collective security commitments within the North Atlantic Treaty Organization (NATO), and ensuring the Union's capacity to respond swiftly and decisively to the full spectrum of military and hybrid threats.

RemovedRegulation (EU) 2021/1153

Added(1b) As was stated in the reports of Enrico Letta, Mario Draghi and Sauli Niinistö, the lack of an internal market for defence is hindering the ramp-up of much-needed industrial production and innovation regarding military and dual-use products. In order to reduce unnecessary fragmentation, to strengthen the European Defence Technological and Industrial Base (EDTIB), and to enhance European strategic autonomy and readiness the Union should further stimulate the Union-level cooperation of their defence industry and the development of joint projects. The industry would benefit from an inclusive approach within the internal market and its accelerators for research, development and innovation. The leveraging of Union funding programmes to support defence-related technologies and products is therefore intended not only to serve as a stepping-stone towards a genuine Defence Union, but also to enhance civil-military cooperation across Member States in light of mutually beneficial spill-overs.

RemovedArticle 4 – paragraph 1 – point 1 – point -c (new), Article 3 – paragraph 2 – point a – point ii: (-c) in point (a), point (ii) is replaced by the following: / ‘(ii) to adapt parts of the TEN-T for the dual use of the transport infrastructure with a view to improving both civilian and military mobility, including through the development of necessary dual-use energy infrastructure;’

Added(1c) Given the Union’s intention to open existing programmes to provide more support to defence-related investments with the Union budget, the funded projects should be aligned with the Union's strategic security interests and take into account the European security architecture. This encompasses an alignment with the priorities set out by the Joint White Paper for European Defence Readiness 2030 and with the collective commitments within NATO, which remains a cornerstone of Europe’s collective defence. In light of the persistent Russian threat, Russia’s full-scale aggression against Ukraine, and the intensifying use of hybrid, cyber and subversive tactics against the Union, the latter must strengthen practical cooperation with NATO, NATO members, and trusted, like-minded partners, particularly in defence research, capability development, and military mobility. Closer coordination between the Union and NATO not only avoids duplication and enhances interoperability but also reinforces a united transatlantic response to common security challenges.

Removed(02021R1153)

Added(1d) Investing in the development of cutting-edge dual-use capabilities should be promoted as it contributes to the Union’s broader societal resilience, security and competitiveness objectives. While noting the necessity of ensuring equitable geographic distribution of defence-related investments for Union-wide cohesion and resilience, specific consideration should be given to the Union's external border regions due to their unique security challenges, such as Europe’s Eastern flank bordering Russia, Belarus, and Ukraine. These areas are at the frontline of potential conflicts and are vulnerable to external threats, making it crucial to enhance local defence capabilities and foster resilience within communities.

RemovedThe Niinistö report underlines the need to strengthen dual-use transport corridors for military movements and extend fuel supply and energy logistics capacities along these routes, ensuring sufficient energy availability and resilience for military operations under crisis conditions.

Added(1e) Given that Ukraine’s sovereignty, resilience, and industrial capacity are essential to European security, efforts should be undertaken to explore pathways for the future integration of Ukraine’s defence industry into relevant Union programmes, and to support its efforts to modernise, innovate, and align with European standards. Such cooperation would contribute to strengthening Ukraine’s resilience and the Union’s broader security and industrial objectives.

RemovedRegulation (EU) 2021/1153