European Union – The Omnibus Defense Package: legal framework, challenges, and prospects

The rapid evolution of the European security context, marked by intensifying threats at the Union’s borders, highlights a worrying gap between the need for robust defense capabilities and current industrial and institutional preparedness. The Defense Omnibus Package, proposed by the European Commission, is an urgent response to this situation, aimed at streamlining the legal framework applicable to the defense sector, facilitating access to financing, and strengthening cross-border cooperation, while preserving the sovereignty of Member States and respect for the fundamental principles of the Union. This initiative follows on from the conclusions of the European Council of March 6, 2025, which explicitly called on the Commission to act without delay to strengthen the industrial and operational preparedness of the European Union. The Omnibus Package is thus presented as a horizontal and cross-cutting initiative, covering public procurement law, the regulation of equipment transfers, and financing and innovation in the defense sector.

The primary objective of this initiative is to strengthen the industrial and operational preparedness of Member States by improving the responsiveness, flexibility, and efficiency of processes related to the production, acquisition, and deployment of essential defense capabilities. It also aims to facilitate cross-border cooperation and access to financing, particularly for small and medium-sized enterprises and mid-cap companies, to stimulate innovation and ensure the competitiveness of the European defense industry. The package thus covers defense and security procurement extensively, where it proposes to simplify procedures and introduce more flexible rules for innovative procurement and cross-border consortia. It also includes the regulation of intra-EU transfer authorizations for defense equipment, with the introduction and harmonization of General Transfer Licenses, aimed at reducing delays related to national procedures and facilitating cross-border cooperation. In addition, the Omnibus Defense Package clarifies the European financing framework, both through the European Defense Fund and InvestEU instruments, by specifying eligibility criteria and providing clear guidance on sustainable finance applicable to the defense sector. Finally, it aims to support innovation and the inclusion of SMEs by reducing the administrative burden and recognizing compliance certifications as a lever for simplification.

From a legal standpoint, the Defense Omnibus Package is based on several fundamental principles. It complies with the principle of subsidiarity, allowing Member States to strike a balance between defense preparedness and their national societal objectives. The proposed simplifications remain within the framework of existing legal and political safeguards, thus ensuring legal certainty and predictability for the actors concerned. The principles of proportionality and flexibility guide the reform, with simplified procedures limited to projects financed by the European Defense Fund and innovative procurement, without undermining essential legal obligations. Transparency and accountability are also preserved, through the clarification of sustainable financing requirements and the regulation of investment exclusions in certain categories of prohibited weapons.

The implementation of the Defense Omnibus Package is likely to generate significant benefits. It should speed up the completion of defense projects by reducing delays related to public procurement and equipment transfers, particularly for cross-border projects. It will support innovation and the participation of SMEs by facilitating their integration into cross-border consortia and reducing the disproportionate administrative burden on them. The reform also contributes to strengthening the European Union’s strategic autonomy by enabling the production and deployment of essential defense capabilities with limited dependence on suppliers outside the EU. Economically, it should strengthen the European industrial and technological ecosystem, stimulate research and development, and generate long-term positive spillover effects on the Union’s gross domestic product. Finally, the package provides legal harmonization by clarifying the rules on financing, equipment transfers, and business support instruments, ensuring greater predictability for industrial and financial actors.

Nevertheless, the reform also presents challenges and limitations. The complexity of its national implementation could require significant adjustments to the legal and administrative systems of Member States, particularly regarding the harmonization of procedures and the application of General Transfer Licenses. Certain aspects remain subject to differing interpretations at the national level, creating uncertainty for businesses and authorities. The transition to the new framework will involve an initial burden, particularly for the adaptation of reporting systems and certification mechanisms. The success of the plan also depends on political and institutional cooperation between the Commission, the European Parliament, the Council, and Member States, as well as effective coordination with industry stakeholders.

This reform is expected to have multiple impacts. Strategically and operationally, it should reduce project implementation times, improve responsiveness to crises, and increase support for the massive investments needed for defense preparedness. In terms of European cohesion, the reform will promote cross-border cooperation and reduce industrial fragmentation. It will also stimulate innovation and competitiveness by accelerating the development of cutting-edge defense technologies and supporting innovative consortia. Finally, it should generate significant economic benefits by strengthening the Union’s technological capabilities and industrial ecosystem, thereby contributing to long-term growth.

The next steps involve the European Parliament and the Council reviewing the text as part of the ordinary legislative procedure. The adoption and gradual implementation of the measures will be monitored by dedicated monitoring forums, which will assess the impact of the reform and adjust the provisions based on feedback from industry and national authorities. Coordination between the Commission, Member States, and stakeholders will remain essential to ensure the legal and operational consistency and effectiveness of the entire system.

In conclusion, the European Defense Omnibus Package is a key legal and strategic instrument for strengthening the European Union’s strategic autonomy and the industrial preparedness of its Member States. Through its ability to simplify procedures, improve access to financing, and stimulate innovation, it offers a concrete and operational response to contemporary security and industrial challenges. The rapid adoption and effective implementation of this initiative will be crucial to ensuring that the European Union can respond credibly and effectively to current and future crises.