On 19 March 2025, the European Commission and the High Representative of the Union for Foreign Affairs and Security Policy presented the Joint White Paper for European Defence Readiness 2030, which is a sign of a fundamental shift towards enhanced defence coordination, procurement harmonisation, and industrial strengthening within the EU.
For businesses operating in the defence and dual-use sectors, the White Paper signals significant regulatory changes aimed at streamlining procurement processes, boosting European industrial capacity, and simplifying compliance frameworks.
The following article outlines the key legal and business implications of the White Paper.
Regulatory simplification and procurement harmonisation
A core element of the White Paper is the harmonisation of defence procurement and regulatory simplification. The European Commission will launch a Strategic Dialogue with the defence industry, culminating in a Defence Omnibus Simplification proposal by June 2025. Key regulatory measures include:
- Mutual recognition of defence certifications to reduce cross-border barriers.
- Faster permitting processes for defence-related infrastructure projects.
- Supply chain security measures, including EU-wide coordination of critical raw materials.
- Easier financing access, particularly in the context of ESG compliance in the defence sector.
- Streamlined procurement procedures, aligning EU-wide frameworks for joint acquisitions.
These measures aim to enhance defence industry agility, facilitating joint procurement and creating a more predictable investment environment for companies supplying defence-related products and services.
Boosting the European defence industrial base
The White Paper proposes six strategic priorities to strengthen the European defence industry:
- Aggregated demand and joint procurement – enhancing industrial capacity through coordinated purchases.
- Supply chain resilience – reducing dependency on third-country technology.
- A single EU market for defence equipment – enabling cross-border industrial collaboration.
- Regulatory streamlining – eliminating bureaucratic hurdles in certification and procurement.
- Innovation and R&D investments – leveraging the European Defence Innovation Scheme (EUDIS).
- Workforce development – ensuring a skilled talent pool for the industry.
These measures align with the EU’s broader strategic autonomy agenda, ensuring greater industrial self-sufficiency in defence production.
Defence spending surge – new funding models
A major feature of the White Paper is the ReArm Europe Plan, designed to mobilise over EUR 800 billion in defence investment over four years. Key funding instruments include:
- Security and Action for Europe (SAFE) Initiative – EUR 150 billion in EU-backed loans for joint procurements.
Stability and Growth Pact flexibility – allowing member states to increase defence spending by up to 1.5% of GDP.
- European Investment Bank (EIB) contributions – doubling annual investments to EUR 2 billion.
- Private capital mobilisation – facilitating ESG-compliant investments in the defence sector.
Summary
The White Paper introduces a series of regulatory, financial and structural measures that will have a direct impact on companies operating in the defence and dual-use sectors. Key takeaways include:
- Simplified procurement rules will increase opportunities for companies in the EU defence supply chain.
- Regulatory harmonisation will reduce cross-border complexities, benefiting firms engaged in multi-jurisdictional defence projects.
- New financing models may improve access to capital for defence and dual-use technology providers.
- Supply chain and compliance changes could impact ESG reporting obligations for defence-related activities.
The Preparedness Union Strategy, expected later this year, will provide further details on long-term defence regulatory frameworks. Businesses should closely monitor these developments and assess their implications for procurement, investment, and compliance strategies.
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