EU Proposes New Regulation to Boost Defense Investments: Changes to Horizon Europe, Digital Europe, CEF, and STEP

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In Evidence
|22 April 2025Social icon button for XSocial icon button for LinkedInSocial icon button for Facebook
To strengthen the Readiness 2030 strategic plan and implement the Rearm Europe plan, the European Commission has presented a proposal for a new regulation aimed at stimulating investments in the defense sector within the EU budget. EUDIS Business Accelerator: two new EU calls to accelerate startups in the defence sector

Among the most significant changes are targeted amendments to the Horizon Europe, Digital Europe, and CEF programs, as well as to the STEP platform and the European Defence Fund.

Promoted by the European Commission, the new regulation contains a package of targeted amendments to current EU funding programs to support faster, more flexible, and coordinated investments in the European Defence Technological and Industrial Base (EDTIB). These changes will specifically enhance the EU’s and Member States’ ability to develop, strengthen, and innovate key defense capabilities, while also facilitating access to EU funds for defense sector projects.

This set of amendments complements the Omnibus Defense Simplification Package, which the Commission is expected to present in June 2025. According to early reports, this mechanism will further streamline EU rules and procedures to enable faster and more efficient investments and cooperation in the defense sector among the 27 Member States.

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