The changes follow a new NATO rapid acquisition plan attempting to facilitate agile procurement across the alliance.

The European Commission wants to streamline defence procurement and make key changes to legislation under a new plan announced on 17 June.

Dubbed the ‘Defence Readiness Omnibus’, the plan includes a set of legislative and non-legislative proposals that reply directly to a call made by the European Council on 6 March for Europe to be “more responsible for its own defence”.

The omnibus suggests a raft of changes to streamline defence public procurement by “introducing more flexible procedures including simplified rules for common procurement by multiple member states and specific procedures for the procurement of innovative products”, Thomas Regnier, commission spokesperson for defence, told DSEI Gateway.  

Proposed changes would also reduce the administrative burden on defence projects by speeding up grant processes and fast-tracking permits for certain projects, such as with the European Defence Fund.  

The plan falls in step with the EU’s ‘White Paper for European Defence – Readiness 2030’ announced on 19 March, a roadmap for rearming Europe that also outlines the need for Europe’s strategic independence.  

When asked about the purpose of the new Omnibus plan, Regnier said: “Strategic autonomy depends on a responsive, integrated, and resilient industrial base. Without the ability to rapidly produce, procure, and field critical defence capabilities, we cannot credibly deter threats or reduce dependency”.

“This proposal helps clear the legal and procedural path for exactly that kind of capacity building — within a European framework, and in line with member states’ sovereignty”.

Procurement made “simple and agile”

One of the key proposals detailed in the omnibus includes incentivising joint procurement with at least three member states when buying off-the-shelf equipment to replenish stocks.

It also suggests making framework agreements more flexible and doubling thresholds for supply and service contracts from the current level of EUR412,000 under the ‘Defence Procurement Directive’.

This means the directive will apply to fewer contracts, thus easing an administrative burden - 25% of all procurement procedures fail under current rules, Regnier explained.

Another proposal includes facilitating more efficient movement of defence products within Europe.

“Thanks to this proposal member states will be able to rely on simple and agile procedures better suited for the massive investments needed to build-up their defence readiness”, he added, referring to the omnibus as a whole.  

Changes go beyond defence-specific legislation

Other recommendations from the commission moved beyond just defence-specific legislation, focusing on areas such as improving permits and access to finance.

For example, the commission wants to introduce a fast-track system for construction projects that would speed up the development of defence-related infrastructure, such as manufacturing facilities and training areas.

The commission also wants to make it easier for defence projects to gain exemptions from certain legal restrictions.

For improving access to financing, including the EUR800 billion unveiled as part of the white paper, the commission recommends streamlining eligibility rules for InvestEU, a programme for long-term sustainable funding. The proposals would also provide guidance on defence and sustainable finance to promote investments.

These legislative suggestions now await approval from the European parliament and council to assess how they might be implemented.

The omnibus was created via a consultation process that included a public consultation, exchanges between EU member states and industry, and dialogues chaired by EU Commission President Ursula von der Leyen and Commissioner for Defence and Space, Andrius Kubilius.

These EU proposals follow a new NATO rapid acquisition plan, announced to media including DSEI Gateway ahead of the NATO Summit, which aims to improve agile procurement across the alliance. 

DSEI Gateway News is part of DSEI UK and the broader Clarion Defence portfolio. 
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