EU repurposes research and infrastructure funds for military projects, opening new financing channels without additional budget contributions
The European Union has agreed to redirect billions of euros from existing civilian programmes into defence, creating new funding channels as Brussels accelerates plans to strengthen Europe’s military industrial base by 2030.
The Mini-Omnibus package—provisionally agreed by the European Parliament and Council on 6 November—amends five major EU programmes to allow defence and dual-use spending for the first time. It also formally associates Ukraine with the €7.3bn European Defence Fund (EDF), giving Ukrainian defence firms access to EU-funded collaborative R&D.
What changes
The reforms expand several key civilian-focused programmes:
- STEP (Strategic Technologies for Europe Platform) – originally focused on semiconductors and clean tech, now able to support defence technologies.
- Horizon Europe’s EIC Accelerator – can back dual-use R&D, with restrictions for sensitive military technologies.
- Digital Europe Programme – widened to cyber-defence and AI-enabled military systems.
- Connecting Europe Facility – now eligible to finance military mobility infrastructure.
- Cohesion funds and RRF resources – member states may voluntarily redirect unused regional and COVID-recovery funds to defence through 2027.
These programmes—previously civilian or dual-use only—can now support purely military projects, provided they meet EU content requirements (typically 65% sourced from the EU, Ukraine or EEA-EFTA states).
For contractors and investors, the practical implication is straightforward: previously civilian-only programmes now represent accessible capital for military and dual-use projects.
Funding impact
The Commission expects the Mini-Omnibus to unlock €210m immediately from Horizon Europe returns. The broader ReArm Europe strategy, which includes the Mini-Omnibus alongside the separate €150bn SAFE lending facility and other mechanisms, aims to mobilise up to €800bn in total defence investment by 2030.
A key political advantage: the reforms require no new EU budget contributions, instead repurposing money already allocated within the 2021–2027 cycle—making implementation faster and avoiding difficult negotiations with fiscally conservative member states.
Andrius Kubilius, the EU’s defence commissioner, said the shift “sends a clear message that defence is a priority for the Commission.”
Ukraine joins the EDF
Ukraine’s formal association with the EDF marks a major step in EU-Ukraine defence integration. Ukrainian companies will be able to join European consortia and compete for EDF grants under the same rules as EU entities, subject to eligibility and security checks.
Industry response
Defence contractors and dual-use technology firms welcome the new funding pathways, particularly for early-stage innovation. However, research institutions warn that diverting Horizon Europe resources could weaken Europe’s civilian research capacity. The League of European Research Universities has publicly raised these concerns.
Next steps
The Mini-Omnibus still requires final approval by Parliament and Council, expected before year-end. Member states then have until 2027 to identify and redirect eligible funds—a compressed timeline that will test whether legislative reforms translate into real industrial expansion.
The reforms complement the broader Defence Readiness Omnibus, which tackles permitting, procurement and mobility rules as the EU seeks a faster, more coordinated defence industrial ramp-up