The European Commission has proposed targeted amendments to existing EU funding programmes to accelerate investment in Europe’s defence sector. These changes aim to strengthen the EU’s Defence Readiness 2030 strategy and support the ReArm Europe initiative, enhancing the bloc’s capacity to innovate, scale up, and respond to security challenges.
A key element of the proposal is expanding the Strategic Technologies for Europe Platform (STEP) to include defence-related technologies. This will allow projects aligned with defence priorities outlined in the White Paper for European Defence to receive a “STEP Seal” and benefit from streamlined access to funding through programmes such as the European Defence Fund, Horizon Europe, and the Digital Europe Programme.
Additionally, EU regional development funding—through the European Regional Development Fund and Cohesion Fund—will be more accessible for defence-related investments, particularly in critical technologies.
The proposal also strengthens support for start-ups and innovators in the dual-use and defence sectors. The European Innovation Council will now support ventures developing technologies such as artificial intelligence and cybersecurity with applications in both civilian and military fields.
The Digital Europe Programme will likewise be extended to include dual-use applications, offering backing for advanced infrastructure like AI Gigafactories that support large-scale production of essential technologies.
To further increase flexibility, the proposal introduces a “landing clause” allowing Member States to voluntarily redirect cohesion policy funds to defence initiatives such as the European Defence Fund and the Act in Support of Ammunition Production (ASAP). This measure is intended to build a more resilient and competitive European defence industrial base, aligning investment with evolving security priorities.