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Defence industry: Council agrees position on simplification package to boost Europe's defence industry and readiness

European Council / Council of the European Union

Council of the EU
Press release
26 November 2025 19:11

Member states' representatives approved today the Council's position on a set of proposals aiming to simplify certain provisions on security and defence procurement, facilitate defence investments, and improve market conditions for defence industry. The proposals constitute the so-called "Omnibus V" legislative package as part of the EU's simplification agenda.

The simplification drive is crucial for EU's defence readiness and competitiveness. Both are top priorities for the Danish presidency. Therefore, it is very positive that the Council has reached an ambitious position quickly. The defence omnibus is a next step to further boost the EU's defence readiness towards 2030. And an important step towards a Europe that is able to defend itself. Today is a good day for Europe.

Marie Bjerre, Minister for European Affairs of Denmark

The defence readiness omnibus is an important initiative as we work to ramp up Europe's defence readiness. We need simpler regulation and better conditions for the European Defence Technological and Industrial Base. Regulation made in peace time must not be a barrier for member states and industry in our efforts to provide the necessary capabilities that today's security environment calls for. We need more speed across the board: from defence procurement to the initiation of new defence projects, and this is what the omnibus delivers.

Troels Lund Poulsen, Minister for Defence of Denmark

The world has fundamentally changed with war in Europe and tensions across continents. It is crucial that the EU picks up the pace - especially in the area of defence. The regulatory jungle must be cleared so that European defence companies are not hindered in the build-up that the EU needs. Bureaucratic barriers must not stand in the way of our own security. It must become easier to invest in defence and thereby create the much-needed innovation required for us to strengthen and defend ourselves.

Mortin Bødskov, Minister for Industry, Business and Financial Affairs of Denmark

The package removes administrative delay in procurement, permitting, reporting and cross-border cooperation, giving member states and industry a clearer path to act quickly and reinforce Europe's defence capacity. It consists of the following legislative proposals:

• a draft regulation on defence readiness and facilitating defence investments and conditions for defence industry
• a draft regulation on the acceleration of permit-granting for defence readiness projects
• a draft directive on the simplification of EU transfers of defence-related products and the simplification of security and defence procurement

Main amendments introduced by the Council

The Council mandate broadly maintained the general thrust of the Commission proposals while introducing several targeted amendments.

Draft regulation on defence readiness

The proposal simplifies the management and implementation of the European Defence Fund (EDF) and clarifies how the EU's environmental and chemicals legislation apply to defence readiness activities. The Council mandate narrows the eligibility of costs for testing outside of the EU or EDF-associated countries to testing activities in Ukraine, while also clarifying that the eligibility of such costs must benefit the funded actions and strengthen the competitiveness ofthe network of European defence companies and research institutions aiming to provide the EU with military capabilities and technology, the so-called 'European Defence Technological and Industrial Base' (EDTIB).

Moreover, the text introduces additional incentives to reinforce the participation of SMEs in EDF projects, notably by increasing the funding rate bonus for projects involving SMEs.

Moreover, the mandate reflects the call by many member states to grant co-financing member states the right to access the results of development projects on fair terms.

The Council mandate reiterates the aim of providing a high level of protection of human health and the environment. It therefore retains the amendments proposed by the Commission to the environmental and chemicals legislation, regarding exemptionsavailable for use of chemical substances for defence readiness purposes.

Draft regulation on the acceleration of permit granting

The Council mandate maintains the default time limit for permit decision at 60 days. However, the mandate simplifies the possibility to extend the time limit by up to 90 additional days and makes it more flexible. The mandate also retains the proposal that a permit request would be tacitly approved if the competent authority has not taken a decision before the expiration of the time limit. However, the mandate introduces an obligation to inform the project promoter within 10 days about such approval and clarifies that the decision can be challenged by affected parties. It also highlights that it is up to member states to decide, whether a project located on its territory qualifies as a defence readiness project. Finally, the mandate gives member states the opportunity to introduce in national law a derogation to the general rule of tacit approval in duly justified cases where substantiated evidence demonstrates the existence of a credible and grave risk to human health, the safety of workers, national security or the environment.

Draft directive on simplification of intra-EU transfers and defence procurement

The Council mandate increase the thresholds to ease the administrative burden and give authorities more time to focus on the major defence projects that really matter. Furthermore, it retains the Commission proposal allowing the use of a simpler, so-called 'negotiated', procedure for certain common procurements and innovative products and services. The Council further simplifies the conditions for the use of this expedited procedure to enable member states to quickly address their urgent capability needs. This simpler procedure is not subject to certain conditions, as these are deemed to increase the administrative burden. Discussions regarding the so-called 'European preference' clause will wait until the revision of the procurement directives next year. For now, the focus is on simplification, to which this mandate has delivered.

Next steps

Following today's approval of the Council's mandate, the presidency will start negotiations with the European Parliament.

Background

On 17 June 2025, the Commission adopted its fifth Omnibus package on defence readiness, comprising simplification proposals in defence-specific, as well as non-defence-specific legislation and programmes. The package includes proposals for two regulations and one directive, as well as drafts of delegated regulations aiming to facilitate defence investments and conditions for defence industry and simplify security and defence procurement. The defence readiness Omnibus reflects the priorities set out in the White Paper for European Defence Readiness 2030.

This initiative follows from a broader political objective of enhancing EU competitiveness, by reducing businesses' administrative burdens and creating more favourable conditions for them to operate in the EU. Notably, on 6 March 2025, the European Council called on the Commission and the co-legislators to "swiftly take work forward on simplifying the legal and administrative framework, in particular for public procurement, industry cooperation, permitting and reporting requirements, in order to address all obstacles and bottlenecks hindering a rapid ramping up of the defence industry, including for SMEs and mid-caps."