The ReArm Europe Plan foresees the possibility to incentivise defence-related investments in the EU budget. This has been deemed necessary to support Member States’ defence readiness as underlined in the Joint White Paper for European Defence — Readiness 2030[1].

The ReArm Europe Plan has been devised, in light of the current geopolitical tensions, by the Commission to respond to a European Council tasking, notably to present a set of ‘developed options […] for public and private funding to strengthen the defence technological and industrial base and address critical capability gaps’[2].

As part of this plan, the Commission adopted on 1 April 2025 measures to address strategic challenges in the context of the mid-term review[3] of cohesion policy funds via amendments to existing cohesion policy regulations.

Those aims at incentivising Member States to voluntarily adjust their cohesion programmes to invest in the EU’s emerging strategic priorities.

In particular, the proposal enables Member States to make better use of current possibilities to build resilient infrastructures to foster military mobility and to support and enhance productive capacities of small and large enterprises in the defence sector. Furthermore, the proposal will also encourage skills development in the defence industry to narrow the existing skills gap.

All proposals by the Commission respect the procedures foreseen in terms of impact assessment and stakeholder consultations, as outlined in the appropriate Commission Staff Working Document[4].

Rules for adoption of cohesion policy programme amendments are not modified and therefore will be subject to approval by the monitoring committees as applicable to ensure scrutiny by stakeholders.

Last updated: 3 July 2025