This week the European Parliament’s Industry, Research and Energy (ITRE) Committee endorsed significant amendments to several EU funding programmes, aiming to bolster Europe’s defence and security capabilities.

These measures, part of the broader ReArm Europe Plan, seek to channel EU resources into defence-related projects, including dual-use technologies, military mobility, and infrastructure resilience.

A central aspect of the approved legislation is the expansion of the Strategic Technologies for Europe Platform (STEP). Originally designed to support critical technologies, STEP will now include “defence and security technologies” as a fourth strategic sector. This inclusion broadens the scope to encompass areas such as critical infrastructure protection, disaster response, and election integrity, thereby integrating societal resilience into the EU’s strategic framework.

The Horizon Europe programme, traditionally centred on civilian research, will now allocate funds to projects with potential military applications. This dual-use approach aims to leverage civilian innovations for defence purposes, enhancing the EU’s technological edge. Additionally, the European Defence Fund (EDF) will increase co-financing rates for small and medium-sized enterprises (SMEs) and small mid-caps, potentially offering up to 100% EU co-financing for eligible projects. This move is intended to stimulate innovation and participation from smaller entities in the defence sector.

Digital Europe Programme’s Role in Defence

The Digital Europe Programme (DEP) will play a pivotal role in the EU’s defence strategy by facilitating the deployment of AI factories and gigafactories dedicated to defence-related artificial intelligence models and applications. This initiative underscores the EU’s commitment to advancing technological capabilities in the face of emerging hybrid digital threats. The integration of AI into defence infrastructure aims to enhance operational efficiency and responsiveness.

Meanwhile, the Connecting Europe Facility (CEF) will extend its support to dual-use transport infrastructure, focusing on military mobility corridors, fuel supply chains, and logistics hubs. MEPs have advocated for increased co-financing rates, potentially reaching 100%, particularly for projects in high-priority areas and cross-border sections of military mobility corridors. This initiative aims to streamline the movement of military assets across EU borders, ensuring rapid response capabilities in times of crisis.

A notable aspect of the approved measures is the establishment of a Ukraine Support Instrument within the European Defence Industry Programme. This initiative seeks to modernise Ukraine’s defence industry, fostering partnerships between EU and Ukrainian defence actors. By integrating Ukraine into the EU’s defence framework, the EU aims to strengthen its eastern flank and support Ukraine’s sovereignty amid ongoing regional tensions.

While these measures represent a strategic alignment of EU resources towards defence and security, they also raise several considerations:

1. Resource Allocation: The redirection of funds from traditional sectors to defence-related projects may impact other areas such as research, education, and social programmes. Balancing these priorities will be crucial to maintain comprehensive EU development.

2. Technological Sovereignty: The emphasis on dual-use technologies and AI integration highlights the EU’s intent to reduce dependence on non-EU actors for critical technologies. However, this pursuit of technological sovereignty may necessitate significant investments in research and development.

3. Geopolitical Dynamics: The integration of Ukraine’s defence industry into the EU’s framework could alter regional power dynamics. While it strengthens EU-Ukraine ties, it may also provoke reactions from neighbouring states and non-EU actors with vested interests in the region.

4. Legal and Institutional Frameworks: The expansion of existing programmes to include defence-related projects may require adjustments to the EU’s legal and institutional frameworks. Ensuring compliance with EU treaties and maintaining transparency in defence spending will be essential to uphold democratic accountability.

The European Parliament’s endorsement of measures to boost EU support for security and defence investments marks a significant  and positive step towards a more integrated and resilient European defence structure.

While the strategic objectives align with the EU’s long-term goals of autonomy and preparedness, the implementation of these measures will require careful consideration of resource distribution, technological development, and geopolitical implications. Balancing defence priorities with other EU commitments will be key to ensuring the Union’s overall stability and cohesion.