European defense industry raises concerns over EU red tape, funding delays; proposal expected June 17 to address issues

European defense industry raises concerns over EU red tape, funding delays; proposal expected June 17 to address issues

The European defense industry has been vocal in its concerns about the complexities of EU regulations and funding delays, prompting the European Commission to propose significant reforms. European Defense Commissioner Andrius Kubilius recently announced that the Commission will propose changes to defense procurement and funding access, aiming to address these issues. The proposal is expected to be presented on June 17.

Kubilius emphasized the need for simplification, stating, "Without this simplification, nothing else in defense readiness will be possible to achieve. Putin will not wait for us to get our paperwork in order" [1]. The European defense industry has raised concerns about EU red tape and delays in accessing funds, which Kubilius acknowledged by promising more flexibility in common procurements, framework agreements, and innovation procurement [1].

The proposal will also aim to simplify the directive on defense procurement and the directive on intra-EU transfers of defense products, making access to the bloc's defense fund easier [1]. Additionally, the Commission will look at other rules that impact defense, such as permits, reporting obligations, competition rules, and sustainable finance [1].

In a separate development, the European Commission has confirmed that defense projects can now be funded through the Resilience and Recovery Facility (RRF), which was initially earmarked for climate and digital investment. This shift reflects a radical change in priorities following the Russian invasion of Ukraine [3]. Countries have until August 2026 to meet agreed targets to receive up to €335 billion in RRF funding, with defense-related projects now eligible [3].

Microsoft has also stepped in to support European cybersecurity efforts by launching a free AI-powered security program for EU governments. This initiative, announced by Brad Smith, aims to bolster digital resilience and combat sophisticated cyber threats [4]. The program provides advanced, AI-driven cybersecurity capabilities at no cost, focusing on real-time threat intelligence and collaborative defense tools.

The proposed reforms and new initiatives aim to streamline processes and enhance defense capabilities, addressing long-standing concerns in the industry and responding to the evolving threat landscape.

References:
[1] https://uk.finance.yahoo.com/news/eu-propose-more-flexibility-defence-082004698.html
[2] https://www.tradingview.com/news/reuters.com,2025:newsml_L8N3SD0CB:0-eu-will-propose-more-flexibility-for-defence-procurement-commissioner-says/
[3] https://www.politico.eu/article/change-spending-plans-or-risk-losing-billions-brussels-warns-eu-countries/
[4] https://winbuzzer.com/2025/06/05/microsoft-unveils-free-ai-security-program-for-eu-governments-xcxwbn/