16-07-2025
What the next EU budget means for defence tech
The Commission is continuing its push into defence with today's MFF (Multiannual Financial Framework) proposal, which reshuffles various programmes that funnel money into the sector.
While national security remains a member country competence, the EU has been trying to wrestle its way into relevance on defence for a long time.
Drafts for the Union's next long-term budget obtained by Euractiv outline various tweaks to EU support for defence innovation.
The Commission had already proposed that the European Innovation Council (EIC), an established body supporting deep tech innovation and startups, should start working with defence and dual-use companies, the latter being businesses which produce technologies that can have both civilian and military uses (such as drones).
'The EIC may support innovation in critical technologies with focus on defence applications,' a draft legal text now dryly outlines.
The Council will be following a 'DARPA' approach, per the document – a reference to the US defence funding agency – which it describes as an 'unprecedented opportunity' to support high-tech startups and scaleups in defence.
The Competitiveness Fund is also set to swallow other programmes such as InvestEU and the Strategic Technologies for Europe Platform, which – only a month ago – the Commission said it wanted to open to defence investments.
The Defence Fund and its Defence Innovation Scheme will also be part of the new mega-fund.
Another draft document promises the Scheme will be 'tailormade' for 'speed, flexibility and agility'.
(nl)