On Tuesday, Members of the European Parliament (MEPs) approved proposals to create a genuine EU single market for defence, with 24 votes in favour, 6 against, and 6 abstentions. The new report from the Committee on Security and Defence outlines a vision for a more integrated defence market to close capability gaps and strengthen the European Defence Technological and Industrial Base (EDTIB).
MEPs called for increased long-term EU funding, common procurement, simplified regulations, and incentives for cross-border integration to reduce reliance on non-EU suppliers. These measures are expected to enhance defence spending efficiency, competitiveness, and strategic sovereignty.
The report identifies structural obstacles and proposes solutions to address fragmentation, underinvestment, and deficits in mutual trust among EU member states.
“In the new world of great-power politics, a European single market for defence is no lofty ideal but an urgent necessity. Only by overcoming narrow national interests and fully unleashing the potential of the single market can we give our industry the scale to innovate, create quality jobs, equip our armed forces, and deliver value for money. European strategic autonomy starts with a single market of defence”, said rapporteur Tobias Cremer (S&D, Germany) after the vote.
To overcome barriers, MEPs advocate a “buy European” strategy for defence procurement. This aims to strengthen the European Defence Technological and Industrial Base (EDTIB), create predictable demand, and boost research and development (R&D). The report asserts that Ukraine should be included in the EU defence market.
It calls for reforms to defence procurement rules to enhance current directives and simplify intra-EU transfers of defence products, including harmonised licensing and mutual recognition of security clearances. MEPs highlight the need for fair competition and caution against excessive national subsidies that could harm small and medium-sized enterprises (SMEs) and smaller EU member states.
To support innovation, the report proposes establishing a European defence innovation accelerator to fund high-risk research projects and facilitate the integration of breakthrough technologies into defence programmes. It also suggests improving access to finance for SMEs and refining intellectual property rules for defence needs.
MEPs stress the need for resilient supply chains, diversification, strategic stockpiling, and reduced dependency on third countries for critical raw materials. They highlight the importance of balanced defence investment across the EU for cohesion.
The report also calls for improved coordination through the European Defence Agency, closer EU-NATO cooperation on standards, enhanced workforce strategies, and better monitoring via a defence single market scoreboard. These steps aim to ensure the democratic legitimacy of EU defence policy.
The report will now be submitted for a vote in the European Parliament.
