The European Commission has allocated 168.2 million euros ($195 million) to expand Europe’s production capacity for energetic materials, propulsion systems, warheads, and ammunition used in missiles, drones, and artillery.
Under the Industrial Reinforcement Action pillar of the 1.5-billion-euro ($1.68-billion) European Defence Industry Programme, the funding supports eight projects aimed at strengthening key defense supply chains and reducing reliance on non-European suppliers.
The projects include efforts in Norway and the Czech Republic to boost missile and drone propulsion, initiatives in France, Poland, Belgium, Latvia, Lithuania, and Spain to expand warhead production, and projects in Finland and Germany to increase explosives manufacturing. Sweden’s project will boost small-caliber ammunition production.
The initiative aims to cut manufacturing times by up to 90 percent and enable annual production of more than 20,000 tonnes of energetic materials, 3,500 propulsion systems, 200,000 loitering-munition warheads, and 60 million rounds of ammunition.
Production will be supported at 17 sites across 14 EU member states and Norway, with measures to protect facilities against physical and cyber threats.
EU Eases Defense Procurement Rules
Alongside funding to expand industrial capacity, the EU is also seeking to remove regulatory barriers to defense production and procurement.
On 9 October, the Council of the European Union gave final approval to the Omnibus V package, which simplifies defense procurement, facilitates cross-border transfers of military equipment, and accelerates permits for defence readiness projects.
The package also streamlines European Defence Fund applications, increases funding bonuses for projects involving small and medium-sized enterprises, and makes implementation more predictable.
It caps permit-granting procedures for defence projects at 102 working days, with applications generally deemed approved if authorities miss the deadline.
Together, the funding and regulatory changes are intended to expand Europe’s defense-industrial capacity and accelerate the delivery of military equipment.
