A new proposal that will allow European Union (EU) funds from existing programmes to be redirected towards defence-related projects was accepted this week in Brussels. Member states gave the rotating presidency a mandate to begin negotiations with the European Parliament on the proposal, which forms part of the bloc’s ReArmEurope plan.

The move does not create new funding but changes how existing funds can be spent. Under the proposal, existing research, digital, and infrastructure programmes could be adapted to support military priorities.

EU officials say the changes are intended to speed up defence investment at a time when spending has risen sharply but defence production capacity remains limited. Since Russia’s invasion of Ukraine in 2022, European governments have increased defence budgets, yet output of ammunition, drones, and air defence systems has struggled to keep pace with demand.

Lawmakers are expected to debate transparency rules and safeguards for dual-use research before the proposal can take effect. If talks conclude quickly, companies could start applying for funding under the revised programmes next year.