The European Union Strengthens Its Regulatory Framework to Boost Its Defense Industry

16/7/2025

A European Defense Strategy Looking Ahead to 2030

In response to Russia’s invasion of Ukraine, the European Commission (EC) is proposing a major regulatory reform to enhance the military preparedness of EU Member States. The goal is to adapt the European Union’s (EU) regulatory framework to support the industrial buildup of the defense sector, particularly by removing regulatory barriers to production, innovation, and investment.

This initiative is part of the implementation of the “Joint White Paper for European Defence Readiness 2030, which calls for a rapid strengthening of Europe’s defense posture by 2030.

With the publication of the proposed regulation COM (2025) 822, the Commission aims to eliminate regulatory bottlenecks that hinder innovation, production, and investment in the strategic defense sector.

A Cross-Cutting Reform for the Defense Industry

Concretely, the reform proposal seeks to amend five key regulations: REACH (1907/2006), CLP (1272/2008), Biocides (528/2012), Persistent Organic Pollutants (2019/1021), and the European Defence Fund. The objective is to lift regulatory barriers while maintaining high standards of health and environmental protection.

Chemical Regulation and Defense: A New Balance

The main goals of the reform include:

  • Expanding exemptions for substances used in the interest of defense
  • Harmonizing exemption terminology across regulations to ensure legal coherence
  • Allowing Member States to withhold certain sensitive information for national or EU security reasons

The reform proposes to rebalance chemical regulations to align them with defense requirements. It introduces broader exemptions to allow the use of substances in military equipment, while preserving consistency across the relevant regulations.

A Reimagined European Defence Fund for Greater Agility

The text also rethinks the European Defence Fund by eliminating administrative burdens and opening up new possibilities to improve its effectiveness. It notably provides that:

  • Equipment testing outside the EU (e.g., in Ukraine) will now be eligible for funding
  • Award criteria will be simplified and better adapted
  • Co-financing Member States will gain easier access to project results
  • The use of indirect management will be expanded, making the fund more agile
  • Projects may become multi-annual, ensuring better continuity

Looking Ahead to 2030: Toward a Structured European Defense Policy

All of these measures converge toward a major objective: achieving a credible and autonomous defense posture for the European Union by 2030.

Without compromising fundamental rights or environmental commitments, the Commission aims to modernize the EU’s industrial and regulatory ecosystem to meet today’s security challenges.

This regulation could lay the groundwork for the EU’s technological and military sovereignty by 2030. It aims to bring agility to European defense policy, which is evolving into a tangible and operational priority, backed by effective tools adapted to real-world conditions and urgent geopolitical needs.

👉🏼 Contact us to stay ahead of these developments!

A European Defense Strategy Looking Ahead to 2030

In response to Russia’s invasion of Ukraine, the European Commission (EC) is proposing a major regulatory reform to enhance the military preparedness of EU Member States. The goal is to adapt the European Union’s (EU) regulatory framework to support the industrial buildup of the defense sector, particularly by removing regulatory barriers to production, innovation, and investment.

This initiative is part of the implementation of the “Joint White Paper for European Defence Readiness 2030, which calls for a rapid strengthening of Europe’s defense posture by 2030.

With the publication of the proposed regulation COM (2025) 822, the Commission aims to eliminate regulatory bottlenecks that hinder innovation, production, and investment in the strategic defense sector.

A Cross-Cutting Reform for the Defense Industry

Concretely, the reform proposal seeks to amend five key regulations: REACH (1907/2006), CLP (1272/2008), Biocides (528/2012), Persistent Organic Pollutants (2019/1021), and the European Defence Fund. The objective is to lift regulatory barriers while maintaining high standards of health and environmental protection.

Chemical Regulation and Defense: A New Balance

The main goals of the reform include:

  • Expanding exemptions for substances used in the interest of defense
  • Harmonizing exemption terminology across regulations to ensure legal coherence
  • Allowing Member States to withhold certain sensitive information for national or EU security reasons

The reform proposes to rebalance chemical regulations to align them with defense requirements. It introduces broader exemptions to allow the use of substances in military equipment, while preserving consistency across the relevant regulations.

A Reimagined European Defence Fund for Greater Agility

The text also rethinks the European Defence Fund by eliminating administrative burdens and opening up new possibilities to improve its effectiveness. It notably provides that:

  • Equipment testing outside the EU (e.g., in Ukraine) will now be eligible for funding
  • Award criteria will be simplified and better adapted
  • Co-financing Member States will gain easier access to project results
  • The use of indirect management will be expanded, making the fund more agile
  • Projects may become multi-annual, ensuring better continuity

Looking Ahead to 2030: Toward a Structured European Defense Policy

All of these measures converge toward a major objective: achieving a credible and autonomous defense posture for the European Union by 2030.

Without compromising fundamental rights or environmental commitments, the Commission aims to modernize the EU’s industrial and regulatory ecosystem to meet today’s security challenges.

This regulation could lay the groundwork for the EU’s technological and military sovereignty by 2030. It aims to bring agility to European defense policy, which is evolving into a tangible and operational priority, backed by effective tools adapted to real-world conditions and urgent geopolitical needs.

👉🏼 Contact us to stay ahead of these developments!