EU Regulation to boost defence investments via ReArm Europe

The European Parliament and the Council have adopted a Regulation amending multiple EU programmes to incentivise defence-related investment under the ReArm Europe Plan.

• Amendments extend defence and dual‑use scope across Horizon Europe, EDF, DEP, CEF and STEP, including a new fourth strategic sector for defence technologies in STEP, opening the EIC Accelerator to dual‑use and critical defence innovations, associating Ukraine to the EDF, and enabling voluntary transfers from cohesion funds to EDF and CEF for dual‑use and military mobility projects.
• The Regulation explicitly backs AI Factories and AI Gigafactories, cloud and HPC infrastructure for very large AI models, allows tighter eligibility and security control rules (limiting participation of third‑country‑controlled entities), and prioritises digital backbone and dual‑use transport infrastructure on EU Priority Military Mobility Corridors, with enhanced co‑financing and pre‑financing conditions when cohesion funds are transferred.