The European Commission has proposed targeted amendments to existing EU funding programmes to enable faster, more flexible and coordinated investments in Europe's defence technological and industrial base (EDTIB). These changes are part of a broader effort to enhance EU defence readiness through the new Readiness 2030 strategy and the ReArm Europe plan.

Key changes to EU funding instruments include:

• The proposal broadens the scope of the Strategic Technologies for Europe Platform (STEP) to cover defence-related technologies and products. This extension allows defence-focused projects to benefit from STEP support, particularly those identified as priorities in the recent White Paper for European Defence – Readiness 2030. Projects selected under the European Defence Fund (EDF), Horizon Europe, and the Digital Europe Programme will now be eligible for a new STEP Seal, making it easier to access funding. This approach ensures that STEP effectively supports the development of cutting-edge technologies essential for the EU's defence preparedness.
• Horizon Europe will expand the role of the European Innovation Council (EIC) to include support for start-ups developing dual-use and defence innovations, such as artificial intelligence and cybersecurity technologies. This change aims to foster a dynamic innovation ecosystem and accelerate the deployment of next-generation technologies with military and civilian relevance.
• The Digital Europe Programme (DEP) will also be broadened to fund dual-use applications, particularly focusing on the creation of AI Gigafactories. These factories are vital for scaling up the production of advanced technologies with dual-use capabilities that are relevant to both civilian and defence sectors.  
• Under the EU Cohesion Policy, new flexibilities are introduced, including a 'landing clause' that enables Member States to voluntarily reallocate cohesion funds to the EDF and the Act in Support of Ammunition Production (ASAP). Additionally, the lifespan of ASAP will be extended until 31 December 2026 to support continued scaling of ammunition production in the EU.
• Connecting Europe Facility (CEF) rules will be adjusted to reinforce military mobility and dual-use infrastructure. Member States will be encouraged to redirect cohesion funds toward dual-use transport projects. At the same time, the CEF Digital programme will be expanded to support digital defence infrastructure such as secure cloud services, AI systems, and 5G networks.

This package of proposed amendments will complement the Omnibus Defence Simplification Package, expected to be presented by the Commission in June 2025. It will further streamline EU regulations and processes to enable faster and more efficient defence investment and cooperation across Member States. 

These proposed open new pathways to access EU funding in the rapidly evolving defence and dual-use technology landscape. Keep an eye on our website and LinkedIn page to stay up to date with the latest news.