Changes to the Connecting Europe Facility (CEF) will enhance support for military mobility and dual-use digital infrastructure, facilitating the transfer of funds for dual-use transport projects and expanding digital capacities like AI and 5G.

In a bid to strengthen the European defence technological and industrial base (EDTIB), the EU Commission has proposed an increase in defence spending within the EU budget.

This initiative aligns with the objectives outlined in the White Paper for European Defence – Readiness 2030, which emphasizes the necessity for improved defence capabilities in response to a shifting geopolitical landscape.

A new initiative has been launched to bolster the EU's Defence Readiness 2030 and implement the ReArm Europe plan, focusing on enhancing the development and innovation of essential defence capabilities.

These amendments are designed to enable faster and more flexible investments in key defence capabilities, thereby improving access to EU funds for defence projects.

Further proposals aimed at streamlining defence regulations are anticipated in June 2025, which will complement the current amendments to enhance efficiency in defence investment across Member States.

The new Regulation introduces a 'landing clause' that allows Member States to voluntarily transfer cohesion policy resources to the European Defence Fund and the Act in Support of Ammunition Production, which has been extended until the end of 2026.

The Strategic Technologies for Europe Platform (STEP) will be expanded to cover defence technologies, awarding selected projects under the European Defence Fund and Horizon Europe with a STEP Seal to promote the development of cutting-edge technology essential for EU defence preparedness.

The Horizon Europe regulation will now include start-ups focused on dual-use and defence-related innovations, fostering a dynamic ecosystem for technological development and rapid deployment of technologies like AI and cybersecurity.

The Digital Europe Programme will be expanded to support dual-use applications, crucial for scaling AI Gigafactories that produce advanced technologies for both civilian and military use.