REPORT on European Defence Readiness 2030: assessment of needs

3.12.2025 - (2025/2142(INI))

Committee on Security and Defence
Rapporteur: Christophe Gomart
PR_INI

Errata/Addenda

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MOTION FOR A EUROPEAN PARLIAMENT RESOLUTION

on European Defence Readiness 2030: assessment of needs

(2025/2142(INI))

The European Parliament,

– having regard to the Treaty on the Functioning of the European Union (TFEU),

– having regard to Title V of the Treaty on European Union, in particular Chapter 2, Section 2 thereof on the common security and defence policy,

– having regard to the white paper entitled ‘White Paper for European Defence – Readiness 2030’, presented by the Commission and the High Representative for the Union for Foreign Affairs and Security Policy on 19 March 2025, and its five-pillar financing plan entitled ‘ReArm Europe’,

– having regard to the joint communication from the Commission and the High Representative of the Union for Foreign Affairs and Security Policy of 18 May 2022 on the Defence Investment Gaps Analysis and Way Forward (JOIN(2022)0024),

– having regard to the study published on 11 January 2024 entitled ‘Access to equity financing for European defence SMEs’[1],

– having regard to the joint communication from the Commission and the High Representative of the Union for Foreign Affairs and Security Policy of 5 March 2024 entitled ‘A new European Defence Industrial Strategy: Achieving EU readiness through a responsive and resilient European Defence Industry’ (JOIN(2022)0024),

– having regard to the report of 9 September 2024 by Mario Draghi on the future of European competitiveness (Draghi report),

– having regard to the European Investment Bank (EIB) Activity Report 2024,

– having regard to its position at first reading of 25 November 2025 on the proposal for a regulation of the European Parliament and of the Council establishing the European Defence Industry Programme and a framework of measures to ensure the timely availability and supply of defence products[2],

– having regard to the joint communiqué issued on 6 June 2025 by France, Germany, Spain, Estonia, Luxembourg, the Netherlands and Portugal on the launch of the ‘Finance Europe’ label,

– having regard to the Commission communication of 17 June 2025 on the Defence Readiness Omnibus (COM(2025)0820), aimed at simplifying the relevant legal and administrative frameworks to strengthen the EU’s defence readiness,

– having regard to the 10th progress report of June 2025 on the implementation of the common set of proposals endorsed by EU and NATO Councils on 6 December 2016 and 5 December 2017,

– having regard to Council Regulation (EU) 2025/1106 of 27 May 2025 establishing the Security Action for Europe (SAFE) through the Reinforcement of the European Defence Industry Instrument[3],

– having regard to the report of 10 April 2024 by Enrico Letta on the future of the European single market (Letta report),

– having regard to the report of 30 October 2014 by Sauli Niinistö entitled ‘Safer Together –Strengthening Europe’s Civilian and Military Preparedness and Readiness’ (Niinistö report),

– having regard to its resolution of 12 March 2025 on the white paper on the future of European defence[4],

– having regard to its resolution of 8 July 2025 on the financial activities of the European Investment Bank – annual report 2024[5],

– having regard to the Commission notice of 28 August 2025 on the application of the sustainable finance framework and the Corporate Sustainability Due Diligence Directive to the defence sector (C(2025)3800),

– having regard to the opinions of the Committee on Economic and Monetary Affairs, the Committee on Industry, Research and Energy, and the Committee on Budgets,

– having regard to Rule 55 of its Rules of Procedure,

– having regard to the report of the Committee on Security and Defence (A10-0234/2025),

A. whereas according to the European Defence Agency (EDA), after a decline in 2014, Member States’ defence expenditure reached EUR 343 billion in 2024, corresponding to 1.9 % of GDP and representing a 19 % increase compared to 2023; whereas according to the EDA, Member States’ defence expenditure may exceed the 2 % NATO guideline in 2025;

B. whereas the current level of investment in security and defence in the EU is insufficient to meet the capability targets for every Member State; whereas the cost of isolated action is much higher than the cost of joint action; whereas the cost of non-preparedness and any potential military defeat and the consequent loss of autonomy is much higher than the cost of acting decisively now; whereas increasing national defence spending without addressing coordination issues, redundant efforts and misaligned strategies could be counterproductive as it may exacerbate force integration challenges and drive up procurement costs for all Member States by intensifying competition between them;

C. whereas the Niinistö report emphasises that increasing the available funding for defence cooperation is vital to overcome endemic fragmentation and decades of underinvestment; whereas the Commission identified a defence capability investment gap of EUR 800 billion for Member States to be closed by 2030 under the ReArm Europe plan, involving an annual increase of 10 % in spending, to reach around EUR 575 billion in 2030, or 3.15 % of combined GDP; whereas this is aligned with the Draghi report on the future of European competitiveness;

D. whereas in its proposal for the multiannual financial framework (MFF) 2028-2034, the Commission is allocating EUR 115.7 billion (in 2025 prices) to defence and space under the European Competitiveness Fund, five times more than in the previous MFF period, as well as EUR 15.7 billion (in 2025 prices) for military mobility under the Connecting Europe Facility, a tenfold increase compared to the previous period, aiming at supporting the development of transport infrastructure that can be used for both civilian and military purposes;

E. whereas EU citizens rightly expect more from the EU and its budget, including the capacity to respond quickly and effectively to evolving threats and to provide the necessary support to bolster defence capabilities, especially in times of crisis; whereas the next MFF should support a comprehensive security approach and appropriately fund measures that strengthen defence readiness and resilience;

F. whereas according to the EDA, 31 % of Member States’ defence expenditure in 2024 was devoted to investment, of which 88.2 % was for the acquisition of new equipment and 11.8 % for research and development (R&D); whereas expenditure on defence equipment procurement reached EUR 88 billion in 2024, growing by 39 % compared to 2023; whereas under the ReArm Europe plan, this increase is expected to generate at least EUR 240 billion in additional investment by 2030; whereas expenditure on defence R&D in the Member States also rose by 20 % in 2024, reaching EUR 13 billion;

G. whereas according to the Commission, 78 % of Member States’ defence procurement between February 2022 and June 2023 was from non-EU countries, with the United States accounting for two thirds of this figure, and 70 % of the turnover of the European defence technological and industrial base (EDTIB) depends on European public procurement;

H. whereas according to the Aerospace, Security and Defence Industries Association of Europe, the EDTIB, which in 2023 accounted for around 580 000 direct jobs, 1.4 million indirect jobs and a turnover of EUR 160 billion (one third of which came from exports), faces a triple challenge: recruitment, procurement and financing;

I. whereas small and medium-sized enterprises (SMEs) represent a vital component of the EDTIB, providing innovation, flexibility and resilience across the entire value chain; whereas the Commission’s 2024 study on access to equity financing highlights, however, that SMEs in the EDTIB face greater difficulties than those in other sectors in obtaining credit and equity financing because of: (i) irregular public procurement and payment delays between subcontractors, which reduce cash flow visibility, (ii) the exclusion of defence activities by some investors for image reasons, and (iii) limited exit opportunities for defence assets on European capital markets; whereas addressing such financing obstacles is essential to give defence-related SMEs fair access to capital markets and private investment, thus improving competitiveness and economic resilience;

J. whereas additional financing needs for the EDTIB for the 2025-2030 period are estimated, at a minimum, at EUR 30 billion to EUR 40 billion, of which EUR 6 billion to EUR 18 billion is estimated to be met through equity; whereas this highlights the relevance of the EU’s savings and investments union (SIU) in mobilising long-term private capital and attracting institutional investors;

K. whereas the defence sector remains highly fragmented, structured around major buyers, fragile subcontracting chains and underdeveloped pan-European value chains, limiting the cash flow of small businesses, which are often forced to finance their working capital requirements with long-term resources; whereas this hampers the strengthening of the EDTIB, which is essential for building up defence capabilities;

L. whereas the EIB prioritised the security and defence sector, adapted its lending criteria and internal processes and created a one-stop shop for financial support on security and defence, namely its Security and Defence Office; whereas the EIB mobilised nearly EUR 1 billion in 2024 and was aiming to mobilise EUR 2 billion in 2025 but has actually already reached EUR 3 billion; whereas it has already allocated EUR 13 billion to defence since 2017 and plans to allocate an additional EUR 6 billion by 2027, while expanding its activities to include dual-use projects and new financial instruments; whereas improving access to EIB instruments for SMEs and mid-caps in the defence and security ecosystem is key to ensuring inclusive and innovative growth across the EU;

M. whereas the EIB plays a key role in promoting economic cohesion, sustainable development and competitiveness in the EU; whereas the establishment of a defence, security and resilience bank was proposed in the white paper on the future of European defence; whereas formally extending the EIB’s mandate to include support for the EDTIB would be a more effective and proportionate solution than creating a new defence, security and resilience bank;

N. whereas any extension of the EIB’s lending policy and eligibility criteria to include defence-related equipment must be assessed against the need to preserve the EIB’s financial stability and its AAA credit rating, which remain essential safeguards for its ability to deliver on EU policy priorities, including defence readiness and the EU’s overall political independence;

O. whereas in 2023, approximately 39 notified foreign direct investment (FDI) cases underwent an in-depth review under the EU FDI screening cooperation mechanism, with the defence and aeronautics sectors being particularly affected[6];

P. whereas despite the establishment of specialised funds in Europe, only around 30 European funds specialising in defence existed in 2024, of which four had assets exceeding EUR 500 million, compared with more than 50 such funds in the United States, including 30 of that size, and this situation leads to a less attractive secondary market, lower valuations during exit transactions and a risk of takeover by foreign investors;

Q. whereas the deteriorating security environment and growing hybrid and conventional threats throughout the EU underscore the need for sustained investment in defence readiness, resilience and military mobility; whereas the eastern flank constitutes a strategic area for Europe’s overall security, requiring enhanced infrastructure, surveillance capabilities and rapid reinforcement mechanisms; whereas strengthening border management, improving counter-drone and air defence systems, and developing regional industrial capacities for defence production and innovation are essential to ensure the EU’s preparedness; whereas these measures, including the implementation of key initiatives such as the European Drone Defence Initiative, the Eastern Flank Watch, the European Air Shield and the European Space Shield, should be supported by adequate EU funding; whereas such efforts are crucial to protect the most exposed Member States, preserve the EU’s territorial integrity and uphold collective deterrence and stability across the continent;

Providing a stable foundation and long-term vision for private defence investment

Supporting and better directing Member States’ public investment in defence

1. Believes that the time has come for a renewed political commitment to make the EU a credible security provider by strengthening its defence readiness through fostering deeper cooperation among Member States, their armed forces and industries; calls on the Member States to pool efforts to achieve a coherent, ambitious and integrated European framework for defence; underlines, in this context, the need for the Commission and the Member States to prepare emergency procedures for projects established in response to major crises or wars, including faster allocation of public funds and private capital, as an integral element in ensuring readiness and the EU’s capacity to respond rapidly and effectively to emerging security threats;

2. Expresses concern that, despite the objectives of the ReArm Europe plan, by the end of July 2025 only 10 out of 27 Member States had announced a clear target to increase their defence spending to at least 3 % of GDP by 2030; calls on each Member State to draw up a detailed strategic vision for its military expenditure up to 2030, with a clear division between hard defence capabilities and dual-use infrastructure, including capability milestones, stockpile metrics, SME participation figures, and a target for the share of collaborative procurement; stresses the need for national defence budgets to close capability gaps, restore deterrence and ensure adequate support for Ukraine; underlines that future investment must prioritise cooperation, interoperability and joint procurement, making EU-level collaboration the norm within the European defence industrial sector; stresses, in this regard, the need to align Readiness 2030 with the concrete numerical targets set out in the European defence industrial strategy (EDIS), in particular by ensuring that at least 40 % of defence equipment is procured jointly by 2030, that at least 35 % of defence trade is intra-EU trade by 2030, and that at least 50 % of defence procurement is of EU-made products by 2030, and 60 % by 2035; commends those Member States that consistently allocate more than 3 % of GDP to defence; recalls that the Member States should regularly update their capability targets and military doctrines to address new and emerging threats;

3. Acknowledges the stark deterioration in the EU’s security context, resulting in growing threats to the EU’s external borders; calls, consequently, for the EU and its Member States to adopt a comprehensive approach to defence, recognising that security extends beyond military assets and also encompasses defence against hybrid threats; stresses that internal political stability is a prerequisite for credible military strength, and that without citizens’ trust in institutions and democracy, the EU’s overall security and cohesion would remain fragile; calls for the swift and solidarity-based mobilisation of EU financial support, in particular for those Member States most exposed to conventional military threats;

4. Welcomes the proposals set out in the ReArm Europe plan to offer Member States greater budgetary flexibility and to encourage increased defence spending in order to strengthen the EDTIB; notes, in particular, the loan facility under the EUR 150 billion SAFE instrument and that 19 Member States will make use of SAFE loans; regrets, however, that the Commission has based this instrument on Article 122 TFEU, thereby ruling out consultation with Parliament, which prevents monitoring and control of the funds and risks exacerbating disparities between Member States; stresses its function of budgetary control in line with Article 314 TFEU and, therefore, calls strongly on the Commission to refrain from applying Article 122 to any other initiative related to the defence industry, or to other issues related to defence financing in the future; considers, in this regard, that it is crucial for projects under SAFE to reflect the EU’s capability priorities as identified in the white paper on European defence, the capability development plan and the Defence Readiness Roadmap 2030; regrets, however, the fact that procurements carried out by one Member State are eligible for support under SAFE, where a procurement contract is signed no later than 30 May 2026, since this fails to incentivise common procurement and market defragmentation, and ultimately risks exacerbating disparities between Member States; stresses, in this regard, that financing should also be based on facilitated access to private capital, national contributions, existing budgetary margins or alternative mechanisms that ensure fiscal responsibility; calls on the Commission, to that end, to promote multi-year block purchases to lower unit costs and reduce the fragmentation of weapon systems currently in use across the EU;

5. Notes that Europe’s defence ecosystem remains fragmented across industrial, financial and governance dimensions; stresses that the EU budget remains an effective instrument to improve integrated planning, stable long-term financing and effective implementation in the area of defence, thereby overcoming that fragmentation; reiterates that increased national defence budgets should be accompanied by increased coordination and joint action at EU level; recalls the importance of ensuring broad support for public investment in defence and thus the need for a fair distribution of the costs; regrets the lack of a strong EU preference clause in the ReArm Europe plan, especially regarding the SAFE instrument, which would reinforce the EDTIB, create new jobs in the EU, increase the interoperability and interchangeability of defence products in the EU and reduce dependence on non-EU countries, thus strengthening Europe’s deterrence and increasing its security of supply; stresses that, for the SAFE instrument to be financially efficient, it should primarily be a vehicle for jointly procuring, maintaining and operating strategic enablers, especially those providing intelligence surveillance and reconnaissance; calls on the Commission to use its role fully, in particular through the SAFE task force, to ensure that Member States’ national defence plans respect SAFE’s objective of promoting joint procurement to address capability gaps efficiently and to use all available instruments, including European Defence Projects of Common Interest and the Structure for European Armament Programme;

6. Observes the limited and uneven use of the national escape clause and notes that, despite such flexibility, several Member States continue to face constraints in their fiscal capacity to meet the demands and respond effectively to shared priorities, and that other Member States have refrained from applying for the national escape clause out of concern about the financial markets’ reaction; recognises that the national escape clause is a temporary instrument for country-specific emergencies, while sustained investment planning requires long-term predictability; highlights the fact that predictable fiscal and regulatory conditions are essential to attract private investment and to ensure the efficient use of public resources across the EU; believes that this framework, where appropriate, should be strengthened by EU-level investment instruments and tools designed to minimise the cost for EU taxpayers and maximise efficiency in the provision of EU public goods;

7. Welcomes the Commission’s proposals to simplify, facilitate and speed up defence procurement; calls for the strengthening of the EU preference principle, ensuring that beneficiaries have the ability to decide on the definition, adaptation and evolution of designs and systems throughout their life cycles, and that no component is sourced from non-EU countries or entities that contravene the security and defence interests of the EU and its Member States; calls, furthermore, for the eligibility criteria under the ReArm Europe plan to be fully aligned with those set out in the European defence industry programme (EDIP), in order to reduce fragmentation, save costs and increase efficiency, foster interoperability and interchangeability, and boost the competitiveness of the EDTIB; stresses that procurement and participation rules should be proportionate and SME-friendly and calls for the introduction of a minimum mandatory share of project value to be allocated to SME participation in the supply chain, ensuring equal access for start-ups and smaller suppliers alongside prime contractors, and avoiding administrative burdens that deter SME participation; calls, moreover, for European supply chain resilience to be strengthened by promoting common standards and mixed supply chains that reduce critical dependencies; acknowledges the need for strong transatlantic cooperation as a foundation for European defence but raises concern over the announcement of a substantial increase in the procurement of defence products from the United States, as this will counteract the ambition defined in EDIS and causes uncertainty for investment in the EDTIB; calls for transatlantic defence industrial cooperation based on a level playing field that will benefit both sides; underlines that participation in EU defence programmes must be fully consistent with the EU’s fundamental values, security interests and the objectives of the common foreign and security policy (CFSP) and the common security and defence policy (CSDP);

8. Underlines that the EU defence industry needs predictable, multi-year demand and common requirements to deliver speed, scale and value; stresses that interoperability and standardisation must be embedded from the outset in defence procurement and investment in the EU, via joint testing and certification, and cross-border acceptance, in order to curb variant proliferation and market fragmentation, in line with the Draghi, Letta and Niinistö reports; encourages Member States to complement their budgetary commitments with transparent medium-term defence investment outlooks covering capability targets, procurement timetables and the share of spending earmarked for cooperative programmes; invites the EDA to compile these national outlooks into an annual comparative overview to facilitate coordination and identify opportunities for joint projects;

9. Stresses the need to strengthen the EDTIB by aggregating demand, simplifying and harmonising the rules, and promoting open and fair competition among European industries, resulting in a more cost-effective and more competitive European defence industry and improved access to defence equipment across the EU; regrets the lack of comprehensive data on EU collaborative equipment procurement, making it impossible to provide a comprehensive analysis of EU collaborative procurement of defence equipment and to adequately assess the state of the EU defence landscape in this area; urges the Commission and the Council to address persistent obstacles to intra-EU trade in defence products, including licensing and certification barriers, and calls on the co-legislators to prioritise the adoption and effective implementation of the Commission’s defence omnibus proposal to streamline transfers and procurement across the EU in support of a more resilient and competitive EDTIB;

10. Underlines that synergies with civilian innovation programmes such as Horizon Europe and the European Innovation Council should be strengthened to maximise impact and avoid duplication; stresses, at the same time, that technological progress must be matched by the necessary human capabilities; expresses concern that the number of active personnel grew only marginally in 2024 and warns that rising investment without parallel recruitment and retention efforts risks creating capability gaps in operating and maintaining new equipment; calls on the Member States to prioritise recruitment and retention policies in the defence sector, including EU-supported exchange and training programmes, to ensure that increased spending translates into real operational readiness;

Adapting the EU budget and financing tools to meet security challenges and the needs of businesses

11. Repeats its previous calls on the Commission to explore all options to support Member States’ defence investment and to maximise the synergies in existing mechanisms to support the EU’s defence readiness; recalls its call to ensure that the next MFF supports a comprehensive security approach through adequate and coordinated investment; welcomes the consolidation of the defence envelope proposed in the 2028-2034 MFF; regrets, however, that the Commission did not provide a sufficiently detailed breakdown of this envelope in its proposal for the 2028-2034 MFF; recalls that a detailed budgetary breakdown is necessary to enable the budgetary authority to take meaningful and informed decisions; stresses that commensurate EU-level investment in defence in the next MFF, underpinned by transparent governance, can reduce duplication, deliver economies of scale, and enhance interoperability; recalls the specific nature of the defence sector, and considers that the next MFF must retain all the criteria and procedures of the financing instruments of the European defence industry, in particular the criteria relating to the European Defence Fund and EDIP;

12. Considers, in this regard, that all options should be explored to support Member States’ defence investment, in particular through existing mechanisms, without increasing national contributions or the overall tax burden on citizens; stresses that such instruments must not rely solely on the issuance of EU-backed loans, for instance through SAFE;

13. Stresses that EU funding should complement, and not replace, the efforts of Member States to increase their national defence spending; underlines that EU instruments should provide added value by fostering cooperation, interoperability and efficiency, while capability planning and requirements must remain within the appropriate institutional frameworks; reiterates that, in order to meet urgent CSDP needs, additional resources for defence priorities must be secured; reiterates, therefore, its call on the Commission and the Council to ensure that the EU is equipped to cover its overall higher spending needs, including through the adoption of new own resources;

14. Recalls that the EIB’s objective is to foster EU integration, promote the development of the EU and support EU policies in line with Article 309 TFEU; welcomes the EIB’s proactive approach in stepping up financing for European security and defence; takes notes, however, of the fact that its investment policy still excludes ‘arms and munitions’ and that its interventions so far have been insufficient in speed, risk appetite and scale to meet urgent defence readiness needs; takes note of the progress made in opening up its criteria, but considers that these remain insufficient to achieve the goals of Defence Readiness 2030 as expressed by industry stakeholders through studies and public consultations; calls, in the interests of consistency with the ReArm Europe plan, on the Member States, as governing body of the EIB, to adapt the EIB’s mandate in order to strengthen its capacity to support the European defence industry and to revise its investment guidelines so as to allow financing for legitimate arms and munitions projects that are in line with international law and the EU’s security interests; calls for the EIB Group to increase its risk appetite and ambition to achieve the crowding-in of investment; warns, however, that any adjustment to the EIB Group’s eligibility criteria or funding to align with new priorities must safeguard the EIB Group’s financial position and ensure effective financing of other strategic EU priorities; calls on the EIB to conduct, and provide Parliament with, a thorough quantitative assessment of its investor policy on defence investment, without, where applicable, compromising its confidentiality agreements with its investors;

15. Suggests that the EIB should continuously reflect on and evaluate its role, as well as the scope of eligible investments, in the light of the pressing need to scale up the European defence sector and ensure long-term security and strategic autonomy; suggests formally extending the EIB’s mandate to include support for the EDTIB within a specialised subsidiary, backed by Commission guarantees and supported by a network of experts; believes that such a structure would be a more effective solution than the creation of a new defence, security and resilience bank;

16. Stresses the importance of improving the accessibility and consistency of EU investment support funds for EDTIB companies, in particular start-ups and SMEs, by progressively adjusting and tailoring eligibility criteria with regard to the ambition laid out in EDIS and EDIP, simplifying application procedures and harmonising the objectives of work programmes; highlights the importance of adjusting the timelines and requirements of such funds to the different innovation cycles and paces of different types of capability domains; calls on Member States and regions to strengthen the role of their chambers of commerce and industry in supporting SMEs in the EDTIB in their research and in gaining access to EU funding;

17. Calls on the Commission to provide clear guidance and templates on new types of agreements, coordination and co-deployment among competitors in the defence sector, in order to facilitate stronger R&D investment by EDTIB companies;

18. Calls for the development of an instrument to support public and private investment in defence on the basis of guarantees from the EU budget, following the example of InvestEU; welcomes, in the short term, the Commission proposal for a delegated act to the InvestEU Fund investment guidelines on strategic investments in the field of defence[7], which calls for the removal of unnecessary administrative burdens in relation to the use of budgetary guarantees and financial instruments to support defence investment, thereby offering additional simplification while respecting the need to protect the security of the EU and the Member States; considers that, taken together, these measures would ensure both the rapid mobilisation of financing and the establishment of a stable and scalable investment framework for the European defence industry;

19. Considers the deployment of banking funds in loans, guarantees and high-quality liquidity portfolios to be essential for long-term maturities in defence spending that will provide predictability and stability; reiterates that accelerating the completion of the SIU would help mobilise private capital and improve access to financing;

Removing disincentives to private investment in defence

Simplifying access to short-term finance for EDTIB companies

20. Calls on the EU Payment Observatory to carry out a study on compliance with payment deadlines in the EDTIB compared to other branches of industry, and to rank the most rigorous companies in this regard;

21. Calls on the EIB, with the support of Member States, to achieve a figure of EUR 4 billion for short-term loans with risk guarantees of up to 50 %, and calls for the relaxation and simplification of the EIB’s defence commitment criteria, as well as the extension of eligibility to indirect subcontractors;

Increasing the capacity of private investors to finance defence by ensuring compatibility with sustainable financing

22. Notes that, despite the efforts made since the start of the war in Ukraine, many investors remain reluctant to finance defence, including owing to uncertainties about the application of environmental, social and governance standards, and that the EDTIB remains discriminated against in the financial markets on the grounds of an erroneously perceived risk to image; recalls that many defence technologies are dual-use in nature and thus generate significant spillover benefits for civilian innovation and the broader EU economy; stresses the need to address persistent negative perceptions surrounding defence financing, particularly in the banking sector; urges the Commission and the Member States to enhance information and awareness-raising efforts regarding EDTIB financing, so as to enable financial actors to improve their proficiency in analysing and processing defence-related financing; urges the Commission to step up its information and awareness-raising efforts regarding EDTIB financing;

23. Acknowledges the Commission Delegated Regulation of 3 November 2025 amending Delegated Regulation (EU) 2020/1818 as regards the definition of prohibited weapons[8], which replaces the concept of ‘controversial weapons’ with that of ‘prohibited weapons’ and was adopted as part of the defence readiness omnibus; highlights the fact that this definition is limited to those weapons expressly prohibited under binding international conventions; welcomes the legal clarifications included in the defence readiness omnibus and acknowledges their importance in achieving the EU’s goals in defence financing; calls on private financial actors to restrict their exclusions to this consolidated list and to publish their investment policies; proposes that the inclusion in EU financing of actors whose investment policies go beyond this exclusion be reviewed on a case-by-case basis;

24. Recalls that the EU sustainable finance framework is designed to direct capital flows towards sustainable activities without limiting the financing of the defence sector, as reaffirmed by the Commission in its notice of 18 August 2025, which confirms that the exclusion of defence-related activities from the EU taxonomy does not prevent private or public investors from investing in the defence sector; calls on the Commission to publicly and unequivocally reaffirm that the EU green taxonomy does not prohibit, restrict or discourage investment in defence; stresses that defence and security are prerequisites for sustainable development;

Opening up exit opportunities on financial markets for defence assets by mobilising private capital

25. Considers it essential to support a European market of specialised investors offering a continuum of financing (credit, private debt and equity) to companies, especially start-ups, SMEs and mid-caps, in the EDTIB and in the Ukrainian DTIB; welcomes the Commission and the EIB’s initiative to establish the Defence Equity Facility, with a budget of EUR 175 million for the 2024-2027 period; considers, however, that this fund is entirely insufficient in view of the financing needs and calls on the EIB to comply with the wishes of the Member States, as reiterated in Council conclusions, by increasing this budget to EUR 1 billion, in order to better meet the equity needs of the EDTIB and its value chain, with particular attention on smaller actors facing the greatest financing gap; encourages the EIB to extend this instrument to the Ukrainian DTIB, and to design it so that it fosters partnerships and joint ventures between EDTIB and Ukrainian DTIB companies;

26. Calls on the Commission and the EIB Group to operationalise support for dual-use projects by improving access to such support for early-stage ventures and SMEs, simplifying procedures, providing clear guidance to investors, and reporting regularly on uptake and geographical distribution; calls for effective implementation through targeted calls and clear guidance for managing authorities, so that regions with less developed defence ecosystems can access these opportunities; invites the Member States to reflect these possibilities in programme design and to coordinate with the Commission and the EIB to develop regional investment platforms, ensuring complementarity and avoiding double funding;

27. Calls on the Commission to consider, in its competition policy, defence readiness, security of supply, innovation-enhancing potential and the reduction of dependencies on non-EU countries; calls, at the same time, on the Member States to ensure that their procurement of defence products is open and competitive for the EDTIB as a whole; calls on the Member States to strengthen their controls on direct investment by third-country actors;

28. Calls on the Commission to strengthen industrial cooperation programmes and transnational partnerships, including supply-chain platforms and co-development projects, with a view to integrating production chains, leveraging national expertise, promoting economies of scale and enhancing the global competitiveness of the EDTIB;

29. Highlights the significance of well-functioning capital markets for defence financing; calls on the Commission and the Member States to accelerate progress on the capital markets union and the SIU, specifically by improving access to equity, venture capital and financing for defence sector SMEs; underlines that the capital markets union and the SIU are instrumental in scaling up defence financing;

30. Stresses the importance of accelerating progress on the completion of the SIU, aiming to support a deeper, more liquid and integrated EU financial system that channels savings more efficiently into productive investments such as those in the EU defence industry; emphasises that the EU defence industry needs to substantially increase its capacity to meet the huge rise in demand for military products;

31. Welcomes the launch of the ‘Finance Europe’ label; notes that this label, which aims to channel private savings towards investments in Europe’s real economy, promotes the equity financing of companies; encourages the Commission to support this initiative by proposing a European label as part of the SIU, while ensuring that it does not create an additional administrative burden;

32. Welcomes the Commission recommendation on savings and investment accounts (SIAs)[9]; highlights the fact that SIAs aim to boost retail participation in EU capital markets, thus contributing to strengthening the markets and facilitating an increase in the EU investor base that would help finance EU strategic priorities, including defence; encourages the Commission to continue supporting this initiative; calls on the Member States to follow the Commission recommendation on increasing the availability of savings and investment accounts;

33. Welcomes the ongoing work aiming at using frozen Russian assets to finance Ukraine’s defence efforts, while addressing financial stability and litigation concerns;

34. Calls for a unified commitment among the Member States to boost defence spending in line with the outcomes of the 2025 NATO The Hague Summit, where NATO allies made a commitment to invest 5 % of GDP annually on core defence requirements and defence- and security-related spending by 2035; urges the Member States to foster European defence initiatives, enhance interoperability and invest in joint procurement aligned with common strategic priorities, including munitions production;

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35. Instructs its President to forward this resolution to the Council and the Commission.

EXPLANATORY STATEMENT

Europe, faced with a resurgence of geopolitical threats, must invest heavily to upgrade its defence system. For thirty years, the European Union has underinvested in its defence, with dire consequences for its military capabilities and industrial base. The number of battle tanks in Europe has fallen from 16 851 in 1992 to 3 383 in 2021 (a drop of 80%)[10]. Taking into account the ‘accumulated backlog’, the European Commission estimates that an additional EUR 800 billion will be needed to renew and modernise Europe’s arsenal. Despite increased financial efforts since 2022, the effective build-up of European armed forces remains hampered by divergences in national budget planning, administrative inertia, the fragmentation of markets and the difficulty of pooling industrial efforts.

In order to meet these needs, on 5 March 2025, the President of the European Commission presented her ‘ReArm Europe’ plan. This plan, which is intended to raise an additional EUR 800 billion for EU defence, is based on five proposals, each of which is set out in Chapter 4 (‘Funding options’) of the White Paper on the Future of European Defence.

However, the ‘ReArm Europe’ plan focuses mainly on the budgetary facilities that could be granted to Member States to finance their increased defence spending, and does not address the issue of how defence industrial companies can gain access to debt and capital financing. According to a study conducted by the European Commission in January 2024, during the period 2021-2022, two-thirds of defence companies did not seek equity financing, and nearly 50% did not seek debt financing (compared to an average of 6.6% for EU SMEs during the same period)[11]. The main reasons identified by the Commission for these difficulties are:

1. The length and complexity of procurement procedures and payment delays between main contractors and subcontractors in the defence sector, limiting visibility of market potential and cash flow;

2. The overly strict and cautious interpretation of ESG criteria, leading banks and investment funds in the EU to adopt exclusion policies;

3. The screening of foreign direct investment in defence assets, combined with a limited market of late-stage investors in the EU, constraining exit opportunities.

The objectives of this own-initiative report are:

• to enable Parliament to take a position on each of the proposals in the ‘ReArm Europe’ plan;

• to add further proposals. To this end, around 40 interviews were conducted between November 2024 and June 2025 with various institutional and private actors in the defence sector to identify the current obstacles to defence financing in Europe and the proposals that could be supported to remove them.

 

ANNEX: DECLARATION OF INPUT

Pursuant to Article 8 of Annex I to the Rules of Procedure, the rapporteur declares that he included in his report input on matters pertaining to the subject of the file that he received, in the preparation of the draft report, from the following interest representatives falling within the scope of the Interinstitutional Agreement on a mandatory transparency register[12], or from the following representatives of public authorities of third countries, including their diplomatic missions and embassies:

Interest representatives falling within the scope of the Interinstitutional Agreement on a mandatory transparency register

Institutional actors:

Banque européenne d’investissement (BEI) – M. Grégoire Chauvière Le Drian, directeur du bureau France, et Mme Alice Terracol, directrice de cabinet.

Direction générale de l’armement (DGA) - M. Emmanuel Chiva, délégué général pour l’armement.

Bpifrance - M. Nicolas Dufourcq, directeur général, M. Pascal Largade, directeur exécutif en charge de l’international, de la stratégie, des études et du développement.

Defence manufacturers:

Association des industries aérospatiales et de défense de l'Europe (ASD) - M. Burkard Schmitt, directeur défense.

Groupement des Industries Françaises de Défense et de Sécurité Terrestre (GICAT) - Général (2S) Jean-Marc Duquesne, délégué général.

Groupement des Industries Françaises Aéronautiques et Spatiales (GIFAS) - M. le général Frédéric Parisot, délégué général, Delphine Miramont, responsable des affaires européennes.

Groupement des Industries de Construction et Activités Navales (GICAN) - M. Philippe Missoffe, délégué général.

Financial actors:

Banking sector:

Fédération bancaire européenne - M. Mateusz Marciniak, public affairs advisor.

Deutsche Bank - M. Malte Kilian, Head of EU Government & Public Affairs.

European Associations of Coopérative Banks (EACB), Mme Priscille Szeradzki, présidente.

Société Générale - M. Eric Allain des Beauvais, responsable du financement des exportations de défense et spatiales, M. Stéphane Giordano, responsable des affaires publiques et président de l’AMAFI (Association française des marchés financiers).

Groupe BPCE - M. Benoît de La Chapelle-Bizot, conseiller du président du directoire du Groupe BPCE, directeur des Affaires Publiques.

Fédération Bancaire Française - M. François Lefebvre, directeur général adjoint, et M. Benjamin Quatre, responsable des affaires publiques.

Financial markets:

Association pour les marchés financiers en Europe (AFME) - M. Rémi Kireche, directeur général, Mme. Carolina Cazzarolli, avocate en charge de la finance durable et de la simplification.

German Investment Funds Association BVI - M. Rudolf Siebel, Managing Director.

Finance Denmark - Mme Pi Wegefelt, Head of EU Affairs, Investment and Sustainability.

Fonds d’investissement Défense Angels - M. Guy Gourevitch, président, M. François Mattens, co-fondateur vice-président.

Fonds d’investissement AllStrat - M. Eric Gaillat, associé co-fondateur, M. Rainier Brunet-Guilly, associé co-fondateur, M. Adrien Ramesan, associé co-fondateur.

Fonds d’investissement Tikehau - M. Grégoire Lucas, directeur des relations stratégiques.

Fonds d’investissement Weinberg Capital - M. Lionel Mestre, partenaire, responsable du fonds d'investissement Eiréné dédié aux PME et ETI de la défense.

Fonds d’investissements Sienna Investment Managers - M. Paul de Leusse, président, M. Thibault de Saint Priest, secrétaire général, Mme. Olivia Noirot-Nérin, directrice dette d’entreprises et future directrice du fonds défense Hephaïstos.

Insurers:

Generali - M. Fabio Marchetti, Group Head of International Public Affairs and Regulatory Advocacy.

Munich RE - M. Gartside, Nicholas, Member of the Board of Management

Allianz - M. Fabien Wathle, directeur général d’Allianz France, M. Christophe Gauer, directeur des affaires publiques, M. Nicolas Boulet, Chief Investment Officer.

France Assureurs - M. Hugues Ribière, responsable des affaires européennes.

AXA - M. Jean-Baptiste Tricot, directeur des investissements du groupe.

Matmut - M. Leovic Lecluze, directeur des investissements, M. Nicolas Gomart, directeur général.

Others:

Incubateur HexaBlock, créateur de la plateforme de financement collaboratif d’entreprises de la défense SouvTech Invest - M. Thomas Léger, co-fondateur de SouvTechInvest, M. Pierre-Elie Froissard, co-fondateur et directeur de SouvTech Invest, Mme Nadège Monneron, co-fondatrice de SouvTechInvest, directrice d’HexaBlock.

Defacto, société de financement à court terme des entreprises, Mme Charlotte Gounot, présidente fondatrice.

 

The list above is drawn up under the exclusive responsibility of the rapporteur.

Where natural persons are identified in the list by their name, by their function or by both, the rapporteur declares that he has submitted to the natural persons concerned the European Parliament’s Data Protection Notice No 484 (https://www.europarl.europa.eu/data-protect/index.do), which sets out the conditions applicable to the processing of their personal data and the rights linked to that processing.

 

OPINION OF THE COMMITTEE ON BUDGETS (06.11.2025)

for the Committee on Security and Defence

on European Defence Readiness 2030: assessment of needs

(2025/2142(INI))

Rapporteur for opinion: Lucia Yar

 

AMENDMENTS

The Committee on Budgets submits the following to the Committee on Security and Defence, as the committee responsible:

Amendment  1

Motion for a resolution

Citation 11 a (new)

Motion for a resolution	Amendment
	– having regard to the European Parliament report of 8 July 2025 on the Financial activities of the European Investment Bank – annual report 20241a, _______________________________ 1a Texts adopted, P10_TA(2025)0145.

Amendment  2

Motion for a resolution

Recital A a (new)

Motion for a resolution	Amendment
	Aa. whereas there is an urgent need to increase European defence-related investments, in particular to enhance Europe’s resilience and security by supporting the development and deployment of dual-use technologies and capabilities that strengthen the protection of critical infrastructure against hybrid threats, cyberattacks and other risks to societal and economic stability, through the Union budget, while also complementing and stimulating the increasing defence spending by the Member States;

 

Amendment  3

Motion for a resolution

Recital B

Motion for a resolution	Amendment
B. whereas the Commission estimates that Member States will need to invest an additional EUR 800 billion in defence by 2030 under the ‘ReArm Europe’ plan, involving an annual increase of 10% in spending to reach around EUR 575 billion in 2030, or 3.15% of combined GDP; whereas, in its proposal for the Multiannual Financial Framework (MFF) 2028-2034, the Commission allocates EUR 131 billion to defence and space, five times more than in the previous period;	B. whereas European defence capabilities suffer from decades of under-investment and whereas the Commission estimates that Member States will need to invest an additional EUR 800 billion in defence by 2030 under the ‘ReArm Europe’ plan, involving an annual increase of 10 % in spending to reach around EUR 575 billion in 2030, or 3.15 % of combined GDP;

Amendment  4

Motion for a resolution

Recital B a (new)

Motion for a resolution	Amendment
	Ba. whereas, in its proposal for the multiannual financial framework (MFF) 2028-2034, the Commission allocates EUR 115.7 billion1a to defence and space under the European Competitiveness Fund, five times more than in the previous period, as well as EUR 15.7 billion1b for military mobility under the Connecting Europe Facility, a tenfold increase compared to the previous period aiming at supporting the development of transport infrastructure that can be used for both civilian and military purposes;
	1a in 2025 constant prices.
	1b in 2025 constant prices.

 

Amendment  5

Motion for a resolution

Recital B b (new)

Motion for a resolution	Amendment
	Bb. whereas EU citizens rightly expect more from the Union and its budget, including the capacity to respond quickly and effectively to evolving threats and to provide the necessary support to bolster defence capabilities, especially in times of crisis; whereas the next MFF should support a comprehensive security approach and appropriately fund measures that strengthen defence readiness and resilience; whereas this is especially relevant in Member States with external borders and especially in those with a land border with Russia and/or Belarus as well as at other directly exposed frontiers; whereas continued support to Ukraine remains a primary pillar of the Union’s security posture;

Amendment  6

Motion for a resolution

Recital I

Motion for a resolution	Amendment
I. whereas the EIB mobilised nearly EUR 1 billion in 2024 to support short-term loans to SMEs and is aiming to mobilise EUR 2 billion in 2025; whereas it has already allocated EUR 13 billion to defence since 2017 and plans to allocate an additional EUR 6 billion by 2027, while expanding its activities to include dual-use projects and developing new financial instruments;	I. whereas the EIB mobilised nearly EUR 1 billion in 2024 to support short-term loans to SMEs and is aiming to mobilise EUR 2 billion in 2025; whereas it has already allocated EUR 13 billion to defence since 2017 and plans to allocate an additional EUR 6 billion by 2027, while expanding its activities to include dual-use projects and developing new financial instruments; whereas improving access to EIB instruments for SMEs and mid-caps in the defence and security ecosystem is key to ensuring inclusive and innovative growth across the Union;

Amendment  7

Motion for a resolution

Paragraph 1

Motion for a resolution	Amendment
1. Expresses concern that, despite the objectives of the ‘ReArm Europe’ plan, by the end of July 2025 only 10 out of 27 Member States had announced a clear target to increase their defence spending to at least 3% of GDP by 2030; encourages each Member State to publish a detailed strategic vision for its military expenditure until 2030, including its capability targets;	1. Expresses concern that, despite the objectives of the ‘ReArm Europe’ plan, by the end of July 2025 only 10 out of 27 Member States had announced a clear target to increase their defence spending to at least 3 % of GDP by 2030; underlines that by analogy NATO targets also contribute to European security; encourages each Member State to publish a detailed strategic vision for its military expenditure until 2030, including its capability targets;

Amendment  8

Motion for a resolution

Paragraph 2

Motion for a resolution	Amendment
2. Welcomes the proposals set out in the ‘ReArm Europe’ plan to offer Member States greater budgetary flexibility, in particular the loan facility under the EUR 150 billion ‘Security Action for Europe’ instrument; regrets, however, that the Commission has based this instrument on Article 122 TFEU, thereby ruling out consultation with Parliament, which prevents monitoring and control of the funds and risks exacerbating disparities between Member States; calls on the Commission to refrain from applying this article to other components of the ‘ReArm Europe’ plan, as well as to other issues related to defence financing;	2. Welcomes the objectives of the ‘ReArm Europe’ plan, including increasing defence funding, fostering joint procurement, stimulating private investment and establishing a truly European defence market to achieve strategic autonomy, while offering Member States greater budgetary flexibility; regrets, however, that the financing identified by the Commission under ReArm Europe consists mostly of national expenditure and therefore does not contribute optimally to cooperation among Member States, synergies or economies of scale, and therefore does not provide European added-value nor an increase of the effectiveness of public spending as would have been the case for a programme funded through the EU budget; strongly condemns the fact that the legislative act establishing the loan facility under the EUR 150 billion ‘Security Action for Europe’ (SAFE) instrument is based on Article 122 TFEU without proper justification, thereby undermining Parliament’s legislative and scrutiny functions and putting at risk democratic legitimacy; calls on the Commission to refrain from applying this article to other components of the ‘ReArm Europe’ plan, as well as to any future proposal related to defence financing; firmly criticises the fact that procurements carried out by one Member State are eligible for support under SAFE, where the contract is signed no later than 30 May 2026, since that fails to incentivise common procurement and market defragmentation, ultimately risking exacerbating disparities between Member States; calls on the Member States to ensure that the use of Union funds and defence instruments such as SAFE is consistent with shared strategic objectives; stresses that access to EU financial instruments in the field of security and defence should be in line with common defence policy frameworks and principles, following clear conditions safeguarding policy coherence and compliance with Union rules, including rule of law conditionality; stresses that financing should be based on facilitated access to private capital, national contributions, existing budgetary margins, or alternative mechanisms while ensuring the protection of the EU budget and EU financial interests;

Amendment  9

Motion for a resolution

Paragraph 3 a (new)

Motion for a resolution	Amendment
	3a. Notes that Europe’s defence ecosystem remains fragmented across industrial, financial and governance dimensions, undermining competitiveness, demand aggregation and efficient resource use; stresses that achieving a genuine internal market for defence requires regulatory streamlining, pooled procurement, and coordinated innovation under a coherent framework; stresses that the EU budget remains the most effective instrument to improve integrated planning, stable long-term financing and effective implementation in the area of defence, thereby overcoming the fragmentation of and the limitations on both Europe’s industrial resilience and strategic autonomy; emphasises that defence investment must go hand in hand with other policy priorities;

Amendment  10

Motion for a resolution

Subheading 2

Motion for a resolution	Amendment
Adapting the Union’s budget and financing tools to meet security challenges and the needs of businesses	Financing tools to meet security challenges and the needs of businesses

Amendment  11

Motion for a resolution

Paragraph 4

Motion for a resolution	Amendment
4. Calls on the Commission to consolidate and clarify the ‘defence’ envelope provided for in the 2028-2034 MFF, exploring all options to support Member States’ defence investments without increasing their contributions or taxation, in particular through existing mechanisms;	deleted.

 

Amendment  12

Motion for a resolution

Paragraph 4 a (new)

Motion for a resolution	Amendment
	4a. Underlines the value of the defence programmes and instruments launched under the current MFF, which create a solid basis for future Union action; reiterates Parliament’s previous calls on the Commission to explore all options to support Member States’ defence investments and to maximise the synergies in existing mechanisms to support the Union’s defence readiness; recalls Parliament’s call to advance towards a genuine European Defence Union and to ensure that the next MFF supports a comprehensive security approach through adequate and coordinated investment, without undermining long-term economic, social and territorial cohesion;

 

Amendment  13

Motion for a resolution

Paragraph 4 b (new)

Motion for a resolution	Amendment
	4b. Criticises the Commission for not providing a sufficiently detailed breakdown of the defence envelope in its proposal for the 2028–2034 MFF; recalls that a detailed budgetary breakdown is needed to ensure that the budgetary authority is equipped to make meaningful and informed decisions;

 

Amendment  14

Motion for a resolution

Paragraph 4 c (new)

Motion for a resolution	Amendment
	4c. Highlights the need for a competitive and resilient EDTIB; stresses that commensurate EU-level investment in defence in the next MFF underpinned by transparent governance, can reduce duplication, deliver economies of scale, and enhance interoperability; underscores the importance of investing in modern defence systems, research, drones and anti-drone technologies, unmanned systems for the Union’s defence and surveillance capabilities, cyber-defence, cybersecurity, and dual-use technologies, and of supporting the Union’s defence industry to strengthen strategic autonomy, foster innovation, create quality jobs and to create cross-border opportunities for EU businesses, including SMEs;

Amendment  15

Motion for a resolution

Paragraph 4 d (new)

Motion for a resolution	Amendment
	4d. Emphasises the importance of reinforcing regional cooperation and cross-border partnerships to enhance Europe’s defence preparedness, industrial interconnectivity and innovation capacity; stresses that investment in transport, energy, and digital corridors contributes both to the Union’s economic cohesion and to its strategic readiness; calls on the Commission to support the Member States by dedicating specific funding to enhance national and regional industrial capabilities, including SMEs and innovative start-ups developing dual-use and cybersecurity technologies; calls furthermore for the strengthening of both the EU’s eastern and southern borders equally, with particular attention to strategic regions such as the Black Sea;

Amendment  16

Motion for a resolution

Paragraph 4 e (new)

Motion for a resolution	Amendment
	4e. Encourages the Commission, the Member States and the European Defence Agency to develop coordinated frameworks to support and facilitate more integrated and less fragmented cross-border defence cooperation in the EU; notes that existing long-standing partnerships demonstrate the economic and operational benefits of shared capability development; underlines that supporting such bottom-up cooperation would strengthen industrial interoperability, reduce duplication, and contribute to a more efficient internal market for defence;

Amendment  17

Motion for a resolution

Paragraph 4 f (new)

Motion for a resolution	Amendment
	4f. Reiterates Parliament’s call to secure sufficient resources for these priorities, including through the adoption of new own resources and, where necessary, joint borrowing to meet common security and defence challenges; calls on the Council to adopt new own resources as a matter of urgency, considering that they are essential to meet the Union’s higher spending needs; considers the adoption of new, genuine own resources crucial in this regard;

Amendment  18

Motion for a resolution

Paragraph 5

Motion for a resolution	Amendment
5. Regrets that the EIB’s investment policy still excludes ‘arms and munitions’; calls, in the interests of consistency with the ‘ReArm Europe’ plan, for the EIB to strengthen its commitment to the European defence industry; suggests formally extending its mandate to include support for the EDTIB within a specialised subsidiary, backed by Commission guarantees and supported by a network of experts; believes that such a structure would be a more effective solution than the creation of a new ‘defence, security and resilience bank’, as proposed in the resolution on the White Paper on the future of European defence;	5. Stresses the need to continue strengthening the role of the EIB in supporting Europe’s defence and security objectives; welcomes the fact that the EIB formally integrated defence and security as a cross-cutting public policy goal, points out that the EIB’s investment policy still excludes some defence-related investments despite repeated calls by the European Parliament for change; calls, in the interests of consistency with the ‘ReArm Europe’ plan, for the EIB to further strengthen its commitment to the European defence industry and encourages it to explore ways to finance industries and companies, and help start-ups to scale up in the security and defence sector in Europe; takes note of the progress made in opening up its criteria, but considers that these remain insufficient in the light of the needs and the expectations expressed by European defence companies; suggests that the EIB should continuously reflect on and evaluate its role, as well as the scope of eligible investments, in the light of the pressing need to scale up the European defence sector and ensure long-term security and strategic autonomy;

Amendment  19

Motion for a resolution

Paragraph 5 a (new)

Motion for a resolution	Amendment
	5a. Highlights the fact that EIB investment in the area of security and defence doubled in 2024 to EUR 1 billion, with the EIB’s 2025 plan set to double it again to a record EUR 2 billion; recalls, however, that the EIB’s operations are by nature limited and can only play a supporting role in addressing the significant investment gap;

 

Amendment  20

Motion for a resolution

Paragraph 5 b (new)

Motion for a resolution	Amendment
	5b. Welcomes the EIB’s lending for start-ups in the defence and security sector and dual-use infrastructure projects; suggests that the EIB could also develop a dedicated framework for dual-use financing that supports projects in areas such as cybersecurity, drone technologies, and resilient transport infrastructure; underlines that such instruments should be compatible with the EU’s sustainable finance principles and accessible to SMEs throughout the Union;

Amendment  21

Motion for a resolution

Paragraph 5 c (new)

Motion for a resolution	Amendment
	5c. Insists that more must be done to maximise the potential of the role of the EIB Group – together with other international and national financial institutions – in lending and de-risking in strategic policy areas, such as security and defence projects; calls for an increased risk appetite and ambition from the EIB Group to crowd in investment, while maintaining a strong capital position and safeguarding the Group’s triple-A rating; calls in addition for a reinforced investment partnership to ensure that every euro spent at Union level is used effectively;

Amendment  22

Motion for a resolution

Paragraph 6

Motion for a resolution	Amendment
6. Stresses the importance of improving the accessibility and consistency of European investment support funds for EDTIB companies by adjusting eligibility criteria, simplifying application procedures and harmonising the objectives of work programmes; calls on Member States to strengthen the role of their chambers of commerce and industry in supporting SMEs in the EDTIB in their research and in gaining access to EU funding;	6. Stresses the importance of improving the accessibility and consistency of European investment support funds for EDTIB companies by adjusting eligibility criteria, simplifying application procedures and harmonising the objectives of work programmes, with particular consideration given to the specific needs, scale and administrative capacities of small and medium-sized enterprises and start-ups; calls on Member States to strengthen the role of their chambers of commerce and industry in supporting SMEs in the EDTIB in their research and in gaining access to EU funding;

Amendment  23

Motion for a resolution

Paragraph 8

Motion for a resolution	Amendment
8. Calls on the EIB, with the support of Member States, to attain a figure of EUR 4 billion for short-term loans with risk guarantees of up to 50%, and calls for the relaxation and simplification of the EIB’s defence commitment criteria, as well as the extension of eligibility to indirect subcontractors;	deleted.

Amendment  24

Motion for a resolution

Paragraph 9

Motion for a resolution	Amendment
9. Notes that, despite the efforts made since the start of the war in Ukraine, many investors remain reluctant to finance defence due to a strict interpretation of environmental, social and governance (ESG) standards, as well as image risk; calls on financial actors to improve their proficiency in analysing and processing defence-related financing; urges the Commission to step up its information and awareness-raising efforts regarding EDTIB financing;	9. Notes that, despite the efforts made since the start of the war in Ukraine, many investors remain reluctant to finance defence due to ethical, legal, regulatory as well as financial concerns; calls on financial actors to improve their proficiency in analysing and processing defence-related financing; urges the Commission to step up its information and awareness-raising efforts regarding EDTIB financing;

 

 

Amendment  25

Motion for a resolution

Paragraph 12

Motion for a resolution	Amendment
12. Considers it essential to support a European market of specialised investors offering a continuum of financing (credit, private debt and equity) to companies in the EDTIB at all stages (start-ups, SMEs and mid-cap companies); welcomes the Commission and the EIB’s initiative to establish the Defence Equity Facility, with a budget of EUR 175 million for the period 2024-2027; encourages the EIB to increase this budget to EUR 1 billion in order to better meet the equity needs of the EDTIB and its value chain;	12. Considers it essential to support a European market of specialised investors offering a continuum of financing (credit, private debt and equity) to companies in the EDTIB at all stages (start-ups, SMEs and mid-cap companies) and to ensure equitable access for SMEs and start-ups from all Member States to such investment, through simplified procedures, technical assistance, and regional innovation hubs supported by the EIB; welcomes the Commission and the EIB’s initiative to establish the Defence Equity Facility, with a budget of EUR 175 million for the period 2024-2027; calls on the EIB to increase this budget to EUR 1 billion in order to better meet the equity needs of the EDTIB and its value chain, with particular attention to smaller actors, which face the greatest financing gap;

 

 

Amendment  26

Motion for a resolution

Paragraph 12 a (new)

Motion for a resolution	Amendment
	12a. Welcomes the Commission proposal1a for a delegated act to the InvestEU Fund investment guidelines on strategic investments in the field of defence, which calls for the removal of unnecessary administrative burdens in relation to the use of budgetary guarantees and financial instruments to support defence investment, thereby offering additional simplification while respecting the need to protect the security of the EU and its Member States;
	__________________
	1a https://defence-industry-space.ec.europa.eu/document/download/bde304e1-5ae4-4a16-9309-1a193483572a_en?filename=Delegated-Regulation-amending-Delegated-Regulation-EU20211078-InvestEU.pdf.

 

 

Amendment  27

Motion for a resolution

Paragraph 12 b (new)

Motion for a resolution	Amendment
	12b. Underlines the need to ensure adequate and predictable support for disruptive and dual-use innovation with civil and military applications; calls on the Commission and the EIB Group to operationalise this support by improving access for early-stage ventures and SMEs, simplifying procedures, clear guidance to investors, and reporting regularly on uptake and geographical distribution; calls for effective implementation through targeted calls and clear guidance to managing authorities so that regions with less-developed defence ecosystems can access these opportunities; invites Member States to reflect these possibilities in programme design and to coordinate with the Commission and the EIB to develop regional investment platforms, ensuring complementarity and avoiding double funding;

Amendment  28

Motion for a resolution

Paragraph 12 c (new)

Motion for a resolution	Amendment
	12c. Highlights the need to ensure adequate financial support to Member States with external EU borders and especially those with a land border with Russia and/or Belarus, to ensure they have the resources for adequate defence spending as well as to maintain facilities and installations necessary to secure the external borders of the EU, including electronic border security enhancements and other tools for border monitoring and surveillance;

 

 

ANNEX: DECLARATION OF INPUT

The rapporteur for opinion declares under her exclusive responsibility that she did not include in her opinion input from interest representatives falling within the scope of the Interinstitutional Agreement on a mandatory transparency register[13], or from representatives of public authorities of third countries, including their diplomatic missions and embassies, to be listed in this Annex pursuant to Article 8 of Annex I to the Rules of Procedure.

 

INFORMATION ON ADOPTION BY THE COMMITTEE ASKED FOR OPINION

Date adopted	5.11.2025
Result of final vote	+: –: 0:	22 5 5
Members present for the final vote	Georgios Aftias, Rasmus Andresen, Isabel Benjumea Benjumea, Olivier Chastel, Tamás Deutsch, Angéline Furet, Thomas Geisel, Jean-Marc Germain, Sandra Gómez López, Andrzej Halicki, Monika Hohlmeier, Alexander Jungbluth, Fabienne Keller, Janusz Lewandowski, Giuseppe Lupo, Siegfried Mureşan, Jana Nagyová, Fernando Navarrete Rojas, Victor Negrescu, Danuše Nerudová, Younous Omarjee, Karlo Ressler, Bogdan Rzońca, Julien Sanchez, Hélder Sousa Silva, Carla Tavares, Nils Ušakovs
Substitutes present for the final vote	Damian Boeselager, Mohammed Chahim, Kai Tegethoff, Roberts Zīle
Members under Rule 216(7) present for the final vote	Vivien Costanzo

 

FINAL VOTE BY ROLL CALL
BY THE COMMITTEE ASKED FOR OPINION

22	+
ECR	Roberts Zīle
PPE	Georgios Aftias, Isabel Benjumea Benjumea, Andrzej Halicki, Monika Hohlmeier, Janusz Lewandowski, Siegfried Mureşan, Fernando Navarrete Rojas, Danuše Nerudová, Karlo Ressler, Hélder Sousa Silva
Renew	Olivier Chastel, Fabienne Keller
S&D	Mohammed Chahim, Vivien Costanzo, Jean-Marc Germain, Sandra Gómez López, Giuseppe Lupo, Victor Negrescu, Carla Tavares, Nils Ušakovs
The Left	Younous Omarjee

 

5	-
ESN	Alexander Jungbluth
NI	Thomas Geisel
PfE	Tamás Deutsch, Angéline Furet, Julien Sanchez

 

5	0
ECR	Bogdan Rzońca
PfE	Jana Nagyová
Verts/ALE	Rasmus Andresen, Damian Boeselager, Kai Tegethoff

 

Key to symbols:

+ : in favour

- : against

0 : abstention

OPINION OF THE COMMITTEE ON ECONOMIC AND MONETARY AFFAIRS (7.11.2025)

for the Committee on Security and Defence

on European Defence Readiness 2030: assessment of needs

(2025/2142(INI))

Rapporteur for opinion: Katri Kulmuni

 

 

AMENDMENTS

The Committee on Economic and Monetary Affairs submits the following to the Committee on Security and Defence, as the committee responsible :

Amendment  1

Motion for a resolution

Citation 3 a (new)

Motion for a resolution	Amendment
	– having regard to the tenth progress report on the implementation of the common set of proposals endorsed by the EU and NATO Councils on 6 December 2016 and 5 December 2017 and published in June 2025,

Amendment  2

Motion for a resolution

Citation 7 a (new)

Motion for a resolution	Amendment
	– having regard to the report of 17 April 2024 by Enrico Letta entitled ‘Much more than a market’ (Letta report),

Amendment  3

Motion for a resolution

Citation 7 b (new)

Motion for a resolution	Amendment
	– having regard to the report of 30 October 2024 by Sauli Niinistö entitled ‘Safer Together – Strengthening Europe’s Civilian and Military Preparedness and Readiness’ (Niinistö report),

Amendment  4

Motion for a resolution

Citation 9 a (new)

Motion for a resolution	Amendment
	– having regard to the European Parliament resolution of 8 July 2025 on the financial activities of the European Investment Bank – annual report 20241a,
	_________________
	1a Texts adopted, P10_TA(2025)0145.

Amendment  5

Motion for a resolution

Citation 11 a (new)

Motion for a resolution	Amendment
	– having regard to the Commission notice of 23 June 2025 on the application of the sustainable finance framework and the Corporate Sustainability Due Diligence Directive to the defence sector,

Amendment  6

Motion for a resolution

Citation 11 b (new)

Motion for a resolution	Amendment
	– having regard to the European Court of Auditors special report 04/2025 of 5 February 2025 entitled ‘EU military mobility – Full speed not reached due to design weaknesses and obstacles en route’,

Amendment  7

Motion for a resolution

Recital A

Motion for a resolution	Amendment
A. whereas, according to the European Defence Agency (EDA), after a decline in 2014, Member States’ defence expenditure reached EUR 326 billion in 2024, or 1.9 % of their GDP;	A. whereas, according to the European Defence Agency (EDA), Member States’ defence expenditure, after a decline in 2014, reached EUR 343 billion in 2024, corresponding to 1.9 % of their GDP, an increase of 19 % compared to 2023, thus constituting the tenth consecutive year of growth and gradually bringing the Union closer to NATO’s former target of 2 % of GDP; whereas, according to the EDA, Member States may exceed the 2 % NATO guideline in 2025;

Amendment  8

Motion for a resolution

Recital B

Motion for a resolution	Amendment
B. whereas the Commission estimates that Member States will need to invest an additional EUR 800 billion in defence by 2030 under the ‘ReArm Europe’ plan, involving an annual increase of 10% in spending to reach around EUR 575 billion in 2030, or 3.15% of combined GDP; whereas, in its proposal for the Multiannual Financial Framework (MFF) 2028-2034, the Commission allocates EUR 131 billion to defence and space, five times more than in the previous period;	B. whereas the Niinistö report emphasises that increasing the available funding for defence cooperation is vital to overcome endemic fragmentation and decades of underinvestment; whereas the Draghi report highlights the need for coordinated European approaches to strategic investment in defence; whereas the Commission is supporting the Member States in their defence investment efforts with up to EUR 800 billion in defence spending until 2030 through different measures under the ‘ReArm Europe’ plan, involving an annual increase of up to 10 % in spending to reach up to EUR 575 billion in 2030, or 3.15 % of combined GDP;

Amendment  9

Motion for a resolution

Recital B a (new)

Motion for a resolution	Amendment
	B a. whereas, in its proposal for the multiannual financial framework (MFF) for 2028-2034, the Commission allocates EUR 131 billion to defence and space, five times more than in the previous period, with implications for EU budgetary discipline and the design of financing mechanisms related to defence;

Amendment  10

Motion for a resolution

Recital B b (new)

Motion for a resolution	Amendment
	B b. whereas, as of August 2025, 16 Member States have requested the use of national escape clauses and 19 Member States have requested loans under the SAFE instrument1a;
	_________________
	1a https://defence-industry-space.ec.europa.eu/document/download/704924ae-3aa2-4bd3-9675-e9cf1e5dfb96_en?filename=communication-to-the-college.pdf.

Amendment  11

Motion for a resolution

Recital C

Motion for a resolution	Amendment
C. whereas, according to the EDA, 30% of Member States’ defence expenditure in 2024 was devoted to investment, of which 88.2% was for the acquisition of new equipment and 11.8% for research and development; whereas, under the ‘ReArm Europe’ plan, this increase is expected to generate at least EUR 240 billion in additional investment by 2030;	C. whereas, according to the EDA, 31 % of Member States’ defence expenditure in 2024 was devoted to investment, of which 88.2 % was for the acquisition of new equipment and 11.8 % for research and development (R&D); whereas expenditure on the procurement of defence equipment reached EUR 88 billion in 2024, 39 % more than in 2023; whereas, under the ‘ReArm Europe’ plan, this increase is expected to generate at least EUR 240 billion in additional investment by 2030; whereas, according to the EDA, while spending on defence R&D in the Member States was 20 % higher in 2024 than in 2023, reaching EUR 13 billion, ‘defence research & technology’, a subset of R&D, still falls short; whereas expansion of procurement and R&D, including ‘defence research & technology’, is significant as it is expected to mobilise European supply chains, stimulate technological innovation and support industrial growth, thus, strengthening Europe’s strategic autonomy;

Amendment  12

Motion for a resolution

Recital F

Motion for a resolution	Amendment
F. whereas, according to a Commission study, SMEs in the EDTIB face greater difficulties than those in other sectors in obtaining credit and equity financing due to: (i) irregular public procurement and payment delays between subcontractors, which reduces cash flow visibility; (ii) the exclusion of defence activities by some investors for image reasons; and (iii) limited exit opportunities for defence assets on European capital markets;	F. whereas small and medium-sized enterprises (SMEs) represent a vital component of the European Defence Technological and Industrial Base (EDTIB), providing innovation, flexibility and specialised expertise; whereas, according to a Commission study, SMEs in the EDTIB face greater difficulties than those in other sectors in obtaining credit and equity financing due to: (i) irregular public procurement and payment delays between subcontractors, which reduces cash flow visibility; (ii) the exclusion of defence activities by some investors for image reasons; and (iii) limited exit opportunities for defence assets on European capital markets; whereas addressing such financing obstacles is essential to give defence-related SMEs fair access to capital markets and private investment, thus, improving competitiveness and improving economic resilience;

Amendment  13

Motion for a resolution

Recital G

Motion for a resolution	Amendment
G. whereas additional financing needs for the EDTIB for the period 2025-2030 are estimated at between at least EUR 30 billion and EUR 40 billion, of which EUR 6 billion to EUR 18 billion will be in equity;	G. whereas additional financing needs for the EDTIB for the period 2025-2030 are estimated at between at least EUR 30 billion and EUR 40 billion, of which EUR 6 billion to EUR 18 billion will need to be financed through equity; whereas this highlights the relevance of the EU’s Savings and Investment Union (SIU) in mobilising long-term private capital and attracting institutional investors;

Amendment  14

Motion for a resolution

Recital H

Motion for a resolution	Amendment
H. whereas the defence sector remains highly fragmented, structured around major buyers and fragile subcontracting chains, which limits the cash flow of small businesses, which are often forced to finance their working capital requirements with long-term resources;	H. whereas the defence sector remains highly fragmented, structured around major buyers and fragile subcontracting chains, and underdeveloped pan-European value chains, which limits the cash flow of small businesses, which are often forced to finance their working capital requirements with long-term resources;

Amendment  15

Motion for a resolution

Recital H a (new)

Motion for a resolution	Amendment
	H a. whereas the strengthening of the European Defence Technological and Industrial Base requires a progressive trajectory that values the productive and industrial specificities of the Member States, in order to safeguard investment, employment, and competitiveness, and to avoid excessive imbalances that could undermine the equilibrium of national markets and the internal market;

Amendment  16

Motion for a resolution

Recital I

Motion for a resolution	Amendment
I. whereas the EIB mobilised nearly EUR 1 billion in 2024 to support short-term loans to SMEs and is aiming to mobilise EUR 2 billion in 2025; whereas it has already allocated EUR 13 billion to defence since 2017 and plans to allocate an additional EUR 6 billion by 2027, while expanding its activities to include dual-use projects and developing new financial instruments;	I. whereas the European Investment Bank (EIB) prioritised the security and defence sector, adapted its lending criteria and its internal processes, and created a one-stop shop for financial support on security and defence – the Security and Defence Office; whereas the EIB mobilised nearly EUR 1 billion in 2024 and was aiming to mobilise a record EUR 2 billion in 2025 but has actually already reached EUR 3 billion; whereas it has already allocated EUR 13 billion to defence since 2017 and plans to allocate an additional EUR 6 billion by 2027, while expanding its activities to include dual-use projects and developing new financial instruments; whereas the need to strengthen dual-use cooperation at EU level has been highlighted by the Niinistö report;

Amendment  17

Motion for a resolution

Recital J

Motion for a resolution	Amendment
J. whereas in 2023, among the foreign direct investments (FDI) notified under the European FDI screening cooperation mechanism, approximately 39 cases were subject to in-depth review, which particularly affected the defence and aeronautics sectors4 ;	J. whereas in 2023, approximately 39 notified foreign direct investment (FDI) cases underwent an in-depth review under the European FDI screening cooperation mechanism, with the defence and aeronautics sectors being especially affected4;
_________________	_________________
4 https://circabc.europa.eu/ui/group/be8b568f-73f3-409c-b4a4-30acfcec5283/library/a27a9d61-a090-4637-99e0-1d2673b7d719/details?download=true	4 https://circabc.europa.eu/ui/group/be8b568f-73f3-409c-b4a4-30acfcec5283/library/a27a9d61-a090-4637-99e0-1d2673b7d719/details?download=true.

Amendment  18

Motion for a resolution

Recital K a (new)

Motion for a resolution	Amendment
	K a. whereas there is an urgent need to increase European defence-related investment, in particular to enhance Europe’s resilience and security by supporting the development and deployment of dual-use technologies and capabilities that strengthen the protection of critical infrastructure against hybrid threats, cyberattacks and other risks to societal and economic stability, through the Union budget, while also complementing and stimulating the increasing defence spending of the Member States;

Amendment  19

Motion for a resolution

Subheading 2

Motion for a resolution	Amendment
Supporting and better directing Member States’ public investment in defence	Supporting Member States’ national efforts and public investment in defence

Amendment  20

Motion for a resolution

Paragraph 2

Motion for a resolution	Amendment
2. Welcomes the proposals set out in the ‘ReArm Europe’ plan to offer Member States greater budgetary flexibility, in particular the loan facility under the EUR 150 billion ‘Security Action for Europe’ instrument; regrets, however, that the Commission has based this instrument on Article 122 TFEU, thereby ruling out consultation with Parliament, which prevents monitoring and control of the funds and risks exacerbating disparities between Member States; calls on the Commission to refrain from applying this article to other components of the ‘ReArm Europe’ plan, as well as to other issues related to defence financing;	2. Welcomes the proposals set out in the ‘ReArm Europe’ plan to offer Member States greater budgetary flexibility, including the ‘Security Action for Europe’ instrument to encourage increased defence spending and strengthen the EDTIB; considers, however, that more needs to be done in order to meet the financing needs identified by the Draghi report, and that massive additional investment efforts will be required to enable the EU to achieve strategic autonomy; stresses that financing should be based on facilitated access to private capital, national contributions, existing budgetary margins, or alternative mechanisms that respect fiscal responsibility, and that eligibility conditions to access such financing protect the security and defence interests of the Union and its Member States; highlights, in this regard, that any involvement of entities that have  ultimate beneficial owners from third countries or candidate countries should be in line with the defence capability priorities jointly agreed by Member States within the framework of the Common Foreign and Security Policy (CFSP);

Amendment  21

Motion for a resolution

Paragraph 2 a (new)

Motion for a resolution	Amendment
	2 a. Regrets the Commission’s frequent application of Article 122 TFEU on matters of common European Union debt, such as the ‘Security Action for Europe’, which ruled out consultation with Parliament, thereby, preventing monitoring and control of the funds and risking exacerbating disparities between Member States; stresses that all defence-related financial instruments and spending programmes, including those under the ‘ReArm Europe’ plan, must remain subject to full budgetary scrutiny by Parliament in line with Article 314 TFEU; insists that the Commission refrain from applying Article 122 TFEU to other components of the ‘ReArm Europe’ plan, as well as in other matters of defence financing;

Amendment  22

Motion for a resolution

Paragraph 2 b (new)

Motion for a resolution	Amendment
	2 b. Emphasises the importance of a coordinated European approach that supports investment in common priorities, follows a broader concept of security, which encompasses both defence and resilience-related objectives, and that include the effective mobilisation of national budgets and private capital; underlines that flexibility in the fiscal framework should be applied in a manner consistent with sound public finances and long-term debt sustainability; observes the limited and uneven use of the national escape clause (NEC) and notes that, despite such flexibility, several Member States continue to face constraints in their fiscal capacity to meet the demands and respond effectively to shared priorities and that other Member States have refrained from applying for the NEC out of concern for the financial markets’ reaction; recognises that the NEC is a temporary instrument for country-specific emergencies, while sustained investment planning requires long-term predictability; highlights that predictable fiscal and regulatory conditions are essential to attract private investment and to ensure the efficient use of public resources across the Union; believes that this framework, where appropriate, should be strengthened by EU-level investment instruments and tools designed to minimise the cost for EU taxpayers and maximise efficiency in the provision of European public goods;

Amendment  23

Motion for a resolution

Paragraph 3 a (new)

Motion for a resolution	Amendment
	3 a. Stresses that although spending on defence R&D in the EU reached EUR 13 billion in 2024, it still represents a modest share of total expenditure compared to global competitors; calls on the Commission to devote a greater proportion of the European Defence Fund and related instruments to disruptive and dual-use technologies (e.g. AI, cyber, quantum and space technologies), ensuring that results are scalable for operational use; underlines that synergies with civilian innovation programmes such as Horizon Europe and the European Innovation Council should be strengthened to maximise impact and avoid duplication;

Amendment  24

Motion for a resolution

Paragraph 3 b (new)

Motion for a resolution	Amendment
	3 b. Calls for the extension of funding opportunities from European funds, including through the Integrated Border Management Fund, to support the engineering preparation of border areas in countries threatened by hybrid activities and conventional armed aggression by third countries, particularly in Member States located in the eastern and Mediterranean parts of the European Union; underlines in this context that the ‘Eastern Shield’ initiative constitutes a flagship project to strengthen the security and resilience of the Union’s eastern border and calls for its adequate financing through Union instruments as a key element of the Union’s overall defence posture;

Amendment  25

Motion for a resolution

Paragraph 4

Motion for a resolution	Amendment
4. Calls on the Commission to consolidate and clarify the ‘defence’ envelope provided for in the 2028-2034 MFF, exploring all options to support Member States’ defence investments without increasing their contributions or taxation, in particular through existing mechanisms;	4. Calls on the Commission to consolidate and clarify the ‘defence’ envelope provided for in the 2028-2034 MFF, exploring all options to support Member States’ defence investments, including strengthening NATO’s eastern border, the Mediterranean and the Black Sea region;

Amendment  26

Motion for a resolution

Paragraph 5

Motion for a resolution	Amendment
5. Regrets that the EIB’s investment policy still excludes ‘arms and munitions’; calls, in the interests of consistency with the ‘ReArm Europe’ plan, for the EIB to strengthen its commitment to the European defence industry; suggests formally extending its mandate to include support for the EDTIB within a specialised subsidiary, backed by Commission guarantees and supported by a network of experts; believes that such a structure would be a more effective solution than the creation of a new ‘defence, security and resilience bank’, as proposed in the resolution on the White Paper on the future of European defence;	5. Recalls that the EIB’s objective is to foster European integration, promote the development of the EU and support EU policies in line with Article 309 TFEU; welcomes the EIB’s proactive approach in stepping up financing for European security and defence; however, notes that its investment policy still excludes ‘arms and munitions’ and that its interventions so far have not yet met the needs and expectations expressed by European defence companies; calls in this respect and for the interests of consistency with the ‘ReArm Europe’ plan, on the EIB to further strengthen its commitment to the European defence industry and to revise its investment guidelines so as to allow financing for legitimate defence procurement projects that are in line with international law and the Union’s security interests; notes that possible reservations towards a further extension of the EIB’s lending policy and eligibility criteria for military equipment, due to a perceived risk of withdrawal by investors endangering the EIB’s financial stability, must be supported by a comprehensive justification given that enhancing the defence readiness of the Union and its Member States is an EU policy priority; calls on the EIB to conduct and provide the European Parliament with a detailed assessment of its investors’ policy towards defence investments and the impact of a possible withdrawal of these investments on the EIB’s financial stability without, where applicable, compromising its confidentiality agreements with its investors;

Amendment  27

Motion for a resolution

Paragraph 5 a (new)

Motion for a resolution	Amendment
	5 a. Suggests that the EIB should continuously reflect on and evaluate its role, as well as the scope of eligible investments, in the light of the pressing need to scale up the European defence sector and ensure long-term security and strategic autonomy; warns that any adjustment to the EIB Group’s eligibility criteria or funding to align with new priorities must safeguard the group’s financial position and ensure effective financing of other strategic EU priorities;

Amendment  28

Motion for a resolution

Paragraph 6

Motion for a resolution	Amendment
6. Stresses the importance of improving the accessibility and consistency of European investment support funds for EDTIB companies by adjusting eligibility criteria, simplifying application procedures and harmonising the objectives of work programmes; calls on Member States to strengthen the role of their chambers of commerce and industry in supporting SMEs in the EDTIB in their research and in gaining access to EU funding;	6. Stresses the importance of improving the accessibility and consistency of European investment support funds for EDTIB companies, in particular start-ups and SMEs, by progressively adjusting eligibility criteria with regard to the ambition laid out in the European Defence Industry Strategy, simplifying application procedures, encouraging multi-year block purchases to give industry predictable demand and lower unit costs, and harmonising the objectives of work programmes, with particular consideration given to the specific needs, scale and administrative capacities of SMEs and start-ups; calls on Member States to significantly strengthen the role of their chambers of commerce and industry in supporting start-ups and SMEs in the EDTIB in their research and in gaining access to EU funding;

Amendment  29

Motion for a resolution

Paragraph 6 a (new)

Motion for a resolution	Amendment
	6 a. Proposes to develop an instrument to support public and private investment in defence on the basis of guarantees from the EU budget following the example of InvestEU;

Amendment  30

Motion for a resolution

Paragraph 6 b (new)

Motion for a resolution	Amendment
	6 b. Underlines the importance of developing comprehensive support frameworks enabling SMEs operating in the defence industry to scale up more rapidly, with particular attention to facilitating access to growth capital, supporting product development, testing and evaluation; recognises the importance of strengthening the capacity of SMEs to evolve into prime contractors by improving their ability to source components, enhance manufacturing engineering and integrate advanced automation in order to ramp up production;

Amendment  31

Motion for a resolution

Paragraph 6 c (new)

Motion for a resolution	Amendment
	6 c. Considers banking funds deployed into loans, guarantees and high-quality liquidity portfolios as essential for long term maturities in defence spending that will provide predictability and stability; reiterates that accelerating the completion of the SIU would help to mobilise private capital and improve access to financing;

Amendment  32

Motion for a resolution

Paragraph 7

Motion for a resolution	Amendment
7. Calls on the EU Payment Observatory to carry out a study on compliance with payment deadlines in the EDTIB compared to other branches of industry, and to rank the most rigorous companies in this regard;	deleted

Amendment  33

Motion for a resolution

Paragraph 8

Motion for a resolution	Amendment
8. Calls on the EIB, with the support of Member States, to attain a figure of EUR 4 billion for short-term loans with risk guarantees of up to 50 %, and calls for the relaxation and simplification of the EIB’s defence commitment criteria, as well as the extension of eligibility to indirect subcontractors;	8. Calls on the EIB, with the support of Member States, to attain a figure of EUR 4 billion for short-term loans with risk guarantees of up to 50 %, and calls for the relaxation and simplification of the EIB’s defence commitment criteria, as well as the extension of eligibility to indirect subcontractors, while ensuring that any such financing does not contradict the defence capability priorities jointly agreed by Member States within the framework of CFSP, including good neighbourly relations, to maintain strategic alignment;

Amendment  34

Motion for a resolution

Paragraph 8 a (new)

Motion for a resolution	Amendment
	8 a. Calls on the Commission to ensure full legal clarity and certainty for investors, eliminating interpretative ambiguities and ensuring a level playing field for the defence sector;

Amendment  35

Motion for a resolution

Subheading 6

Motion for a resolution	Amendment
Increasing the capacity of private investors to finance defence by ensuring its compatibility with sustainable financing	Increasing the capacity of private investors to finance defence

Amendment  36

Motion for a resolution

Paragraph 9

Motion for a resolution	Amendment
9. Notes that, despite the efforts made since the start of the war in Ukraine, many investors remain reluctant to finance defence due to a strict interpretation of environmental, social and governance (ESG) standards, as well as image risk; calls on financial actors to improve their proficiency in analysing and processing defence-related financing; urges the Commission to step up its information and awareness-raising efforts regarding EDTIB financing;	9. Notes that, despite the efforts made since the start of the war in Ukraine, many investors remain reluctant to finance defence, including due to uncertainties over the application of environmental, social and governance standards and the EDTIB remains discriminated against in the financial markets due to image risk; recalls that many defence technologies are dual-use in nature and thus generate significant spillover benefits for civilian innovation and the broader European economy; stresses the need to address persistent negative perceptions surrounding defence financing, particularly in the banking sector; urges the Commission and the Member States to enhance information and awareness-raising efforts regarding EDTIB financing, so as to help financial actors improve their proficiency in analysing and processing defence-related financing;

Amendment  37

Motion for a resolution

Paragraph 10

Motion for a resolution	Amendment
10. Calls on the Commission and the European Securities and Markets Authority to replace the concept of ‘controversial weapons’ with that of ‘prohibited weapons’, in line with the definition set out in the Annex to Delegated Regulation (EU) 2025/[…], adopted as part of the Defence Readiness Omnibus; stresses that this definition is limited to those weapons expressly prohibited under binding international conventions; calls on private financial actors to restrict their exclusions to this consolidated list and to publish their investment policies; proposes that the inclusion in European financing of actors whose investment policies go beyond this exclusion be reviewed on a case-by-case basis;	10. Acknowledges the Commission delegated regulation (...) amending delegated Regulation (EU) 2020/1818 as regards the definition of controversial weapons replacing the concept of ‘controversial weapons’ with that of ‘prohibited weapons’ adopted as part of the Defence Readiness Omnibus; highlights that this definition is limited to those weapons expressly prohibited under binding international conventions; welcomes the importance of the legal clarifications in achieving the Union’s goals in defence financing, included in the Defence Readiness Omnibus;

Amendment  38

Motion for a resolution

Paragraph 10 a (new)

Motion for a resolution	Amendment
	10 a. Recalls that the sustainable finance framework aims at directing capital flows towards sustainable activities while not imposing limitations on the financing of the defence sector as publicly reaffirmed by the Commission; takes note in this regard of the Commission Notice of 17 June 2025 on the application of the sustainable finance framework and the Corporate Sustainability Due Diligence Directive to the defence sector confirming that the EU sustainable finance framework is compatible with investment in the defence sector and underlining that sustainability disclosures apply horizontally across all industries;

Amendment  39

Motion for a resolution

Paragraph 12

Motion for a resolution	Amendment
12. Considers it essential to support a European market of specialised investors offering a continuum of financing (credit, private debt and equity) to companies in the EDTIB at all stages (start-ups, SMEs and mid-cap companies); welcomes the Commission and the EIB’s initiative to establish the Defence Equity Facility, with a budget of EUR 175 million for the period 2024-2027; encourages the EIB to increase this budget to EUR 1 billion in order to better meet the equity needs of the EDTIB and its value chain;	12. Considers it essential to support a European market of specialised investors offering a continuum of financing (credit, private debt and equity) to companies in the EDTIB and in the Ukrainian defence technological and industrial base (DTIB) at all stages (start-ups, SMEs and mid-cap companies); welcomes the Commission and the EIB’s initiative to establish the Defence Equity Facility, with a budget of EUR 175 million for the period 2024-2027; considers this fund entirely insufficient in view of financing needs and calls on the EIB to comply with the wishes of the Member States, as reiterated in Council conclusions, by increasing this budget to EUR 1 billion in order to better meet the equity needs of the EDTIB and its value chain, with particular attention to smaller actors facing the biggest financing gap; encourages the EIB to extend this instrument to the Ukrainian DTIB, as well as to design it so that it fosters partnerships and joint ventures between EDTIB and Ukrainian DTIB companies; underlines that eligibility conditions to access such financing protect the security and defence interests of the Union and its Member States;

Amendment  40

Motion for a resolution

Paragraph 13

Motion for a resolution	Amendment
13. Calls on the Commission to consider relaxing antitrust rules in order to facilitate intra-European consolidation in cases where strategic defence companies are brought under European control; calls, at the same time, on Member States to strengthen their controls on direct investments by foreign actors;	13. Calls on the Commission to consider defence readiness, security of supply, EU strategic autonomy, innovation-enhancing potential and reduction of dependencies on third countries in its competition policy; calls, simultaneously, on Member States to strengthen their controls on direct investments by third-country actors;

Amendment  41

Motion for a resolution

Paragraph 13 a (new)

Motion for a resolution	Amendment
	13 a. Highlights the significance of well-functioning capital markets for defence financing; calls on the Commission and Member States to accelerate progress on the Capital Markets Union/SIU agenda, specifically by improving access to equity, venture capital and financing for defence-sector SMEs; underlines that the Capital Markets Union/SIU is instrumental to scaling up defence financing;

Amendment  42

Motion for a resolution

Paragraph 13 b (new)

Motion for a resolution	Amendment
	13 b. Stresses the importance of accelerating progress on the completion of the SIU and supporting a deeper, more liquid and integrated EU financial system that channels savings more efficiently into productive investments, such as the EU defence industry; highlights that the EU defence industry needs to substantially increase its capacity to meet the huge rise in demand for military products;

Amendment  43

Motion for a resolution

Paragraph 14

Motion for a resolution	Amendment
14. Welcomes the launch of the ‘Finance Europe’ label; notes that this label, which aims to channel private savings towards long-term investments in Europe’s real economy, promotes the equity financing of companies; encourages the Commission to support this initiative by proposing a European label as part of the Savings and Investment Union;	14. Welcomes the launch of the ‘Finance Europe’ label; notes that this label, which aims to channel private savings towards investments in Europe’s real economy, promotes the equity financing of companies; encourages the Commission to support this initiative by proposing a European label as part of the SIU, while ensuring it does not create an additional administrative burden;

Amendment  44

Motion for a resolution

Paragraph 14 a (new)

Motion for a resolution	Amendment
	14 a. Welcomes the Commission recommendation on savings and investment accounts (SIAs); highlights that SIAs aim to boost retail participation in EU capital markets, thus contributing to their deepening and allowing for an increase in the EU investor base that would help finance EU strategic priorities, including defence; encourages the Commission to keep supporting this initiative; and calls on the Member States to follow the Commission recommendation on increasing the availability of savings and investment accounts;

Amendment  45

Motion for a resolution

Paragraph 14 b (new)

Motion for a resolution	Amendment
	14 b. Welcomes the ongoing work aiming at using frozen Russian assets to finance Ukraine defence efforts, while addressing financial stability and litigation concerns;

 

ANNEX: DECLARATION OF INPUT

ENTITIES OR PERSONS FROM WHOM THE RAPPORTEUR HAS RECEIVED INPUT

The rapporteur declares under her exclusive responsibility that she did not include in her opinion input from interest representatives falling within the scope of the Interinstitutional Agreement on a mandatory transparency register[1], or from representatives of public authorities of third countries, including their diplomatic missions and embassies, to be listed in this Annex pursuant to Article 8 of Annex I to the Rules of Procedure.

INFORMATION ON ADOPTION IN COMMITTEE ASKED FOR OPINION

Date adopted	5.11.2025
Result of final vote	+ : 34 - : 8 0 : 7
Members present for the final vote	Georgios Aftias, Rasmus Andresen, Stephen Nikola Bartulica, Isabel Benjumea Benjumea, Gilles Boyer, Giovanni Crosetto, Fabio De Masi, Siegbert Frank Droese, Marco Falcone, Markus Ferber, Jonás Fernández, Claire Fita, Dirk Gotink, Michalis Hadjipantela, Eero Heinäluoma, Jaroslav Knot, Aurore Lalucq, Rada Laykova, Marlena Maląg, Jorge Martín Frías, Costas Mavrides, Fernando Navarrete Rojas, Denis Nesci, Luděk Niedermayer, Ľudovít Ódor, Nikos Papandreou, Gaetano Pedulla', Kira Marie Peter-Hansen, Sirpa Pietikäinen, Pierre Pimpie, Jaroslava Pokorná Jermanová, Jussi Saramo, Paulius Saudargas, Ralf Seekatz, Irene Tinagli, Pasquale Tridico, Lara Wolters, Stéphanie Yon-Courtin
Substitutes present for the final vote	Marc Botenga, Hanna Gronkiewicz-Waltz, Fernand Kartheiser, Arba Kokalari, Morten Løkkegaard, Marco Squarta, Mariateresa Vivaldini
Members under Rule 216(7) present for the final vote	Jaroslav Bžoch, Ana Catarina Mendes, Dan-Ştefan Motreanu, Birgit Sippel

 

FINAL VOTE BY ROLL CALL
BY THE COMMITTEE ASKED FOR OPINION

34	+
ECR	Bartulica Stephen Nikola, Crosetto Giovanni, Nesci Denis, Squarta Marco, Vivaldini Mariateresa
PPE	Aftias Georgios, Benjumea Benjumea Isabel, Falcone Marco, Ferber Markus, Gotink Dirk, Gronkiewicz-Waltz Hanna, Hadjipantela Michalis, Kokalari Arba, Motreanu Dan-Stefan, Navarrete Rojas Fernando, Niedermayer Ludek, Pietikäinen Sirpa, Saudargas Paulius, Seekatz Ralf
Renew	Boyer Gilles, Løkkegaard Morten, Ódor Ludovít, Yon-Courtin Stéphanie
S&D	Fernández Jonás, Fita Claire, Heinäluoma Eero, Lalucq Aurore, Mavrides Costas, Mendes Ana Catarina, Papandreou Nikos, Sippel Birgit, Tinagli Irene, Wolters Lara
The Left	Saramo Jussi

 

8	-
ESN	Droese Siegbert Frank, Laykova Rada
NI	De Masi Fabio, Kartheiser Fernand
The Left	Botenga Marc, Pedulla' Gaetano
Verts/ALE	Andresen Rasmus, Peter-Hansen Kira Marie

 

7	0
ECR	Malag Marlena
PfE	Bzoch Jaroslav, Knot Jaroslav, Martín Frías Jorge, Pimpie Pierre, Pokorná Jermanová Jaroslava
The Left	Tridico Pasquale

 

Key:

+  :  in favour

-  :  against

0  :  abstentions

INFORMATION ON ADOPTION IN COMMITTEE RESPONSIBLE

Date adopted	27.11.2025
Result of final vote	+: –: 0:	30 4 4
Members present for the final vote	Petras Auštrevičius, Wouter Beke, Rachel Blom, Marc Botenga, Tobias Cremer, Salvatore De Meo, Özlem Demirel, Michał Dworczyk, Raphaël Glucksmann, Christophe Gomart, Niclas Herbst, Merja Kyllönen, Javi López, Costas Mavrides, Vangelis Meimarakis, Ana Catarina Mendes, Sven Mikser, Hannah Neumann, Andrey Novakov, Nicolás Pascual de la Parte, Jaroslava Pokorná Jermanová, Marjan Šarec, Mārtiņš Staķis, Marie-Agnes Strack-Zimmermann, Michał Szczerba, Alice Teodorescu Måwe, Riho Terras, Pierre-Romain Thionnet, Pekka Toveri, Mihai Tudose, Reinier Van Lanschot, Roberto Vannacci, Lucia Yar
Substitutes present for the final vote	José Cepeda, Ruth Firmenich, Bart Groothuis
Members under Rule 216(7) present for the final vote	Ondřej Krutílek, Pál Szekeres

 

 

FINAL VOTE BY ROLL CALL BY THE COMMITTEE RESPONSIBLE

30	+
PPE	Wouter Beke, Salvatore De Meo, Christophe Gomart, Niclas Herbst, Vangelis Meimarakis, Andrey Novakov, Nicolás Pascual de la Parte, Michał Szczerba, Alice Teodorescu Måwe, Riho Terras, Pekka Toveri
PfE	Jaroslava Pokorná Jermanová, Pierre-Romain Thionnet
Renew	Petras Auštrevičius, Bart Groothuis, Marjan Šarec, Marie-Agnes Strack-Zimmermann, Lucia Yar
S&D	José Cepeda, Tobias Cremer, Raphaël Glucksmann, Javi López, Costas Mavrides, Ana Catarina Mendes, Sven Mikser, Mihai Tudose
The Left	Merja Kyllönen
Verts/ALE	Hannah Neumann, Mārtiņš Staķis, Reinier Van Lanschot

 

4	-
NI	Ruth Firmenich
PfE	Roberto Vannacci
The Left	Marc Botenga, Özlem Demirel

 

4	0
ECR	Michał Dworczyk, Ondřej Krutílek
PfE	Rachel Blom, Pál Szekeres

 

Key to symbols:

+ : in favour

- : against

0 : abstention

 

 

• [1] European Commission: Directorate-General for Defence Industry and Space, Access to equity financing for European defence SMEs, Publications Office of the European Union, 2024, https://data.europa.eu/doi/10.2889/698738.
• [2] Texts adopted, P10_TA(2025)0281.
• [3] OJ L, 2025/1106, 28.5.2025, ELI: http://data.europa.eu/eli/reg/2025/1106/oj.
• [4] Texts adopted, P10_TA(2025)0034.
• [5] Texts adopted, P10_TA(2025)0145.
• [6] Commission report of 17 October 2024 entitled ‘Fourth Annual Report on the screening of foreign direct investments into the Union’ (COM(2024)0464).
• [7] Commission Delegated Regulation (EU) .../... of 28 August 2025 amending Delegated Regulation (EU) 2021/1078 as regards strategic investments in the field of defence set out of the investment guidelines for the InvestEU Fund (C(2025)3802).
• [8] Commission Delegated Regulation (EU) .../... of 3 November 2025 amending Delegated Regulation (EU) 2020/1818 as regards the definition of prohibited weapons (C(2025)3801).
• [9] Commission Recommendation of 30 September 2025 on Increasing the Availability of Savings and Investment Accounts with Simplified and Advantageous Tax Treatment (C(2025)6800.
• [10] Munich Security Report, ‘Defense sitters – Transforming European Militaries in times of war’, June 2023.
• [11] European Commission, ‘Study results: Access to equity financing for European defence SMEs’, 11 January 2024.
• [12] Interinstitutional Agreement of 20 May 2021 between the European Parliament, the Council of the European Union and the European Commission on a mandatory transparency register (OJ L 207, 11.6.2021, p. 1, ELI: http://data.europa.eu/eli/agree_interinstit/2021/611/oj).
• [13] Interinstitutional Agreement of 20 May 2021 between the European Parliament, the Council of the European Union and the European Commission on a mandatory transparency register (OJ L 207, 11.6.2021, p. 1, ELI: http://data.europa.eu/eli/agree_interinstit/2021/611/oj).
• [1] Interinstitutional Agreement of May 2021 between the European Parliament, the Council of the European Union and the European Commission on a mandatory transparency register (OJ L 207, 11.6.2021, p. 1, ELI: http://data.europa.eu/eli/agree_interinstit/2021/611/oj).