The European Parliament has authorized the use of a special EU fund to finance costs associated with defense projects in Ukraine

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FINANCE 16.09.2026 / author:
The European Parliament has authorized the use of a special EU fund to finance costs associated with defense projects in Ukraine

The European Parliament has authorized the financing of costs for testing defense projects in Ukraine through the European Defence Fund. The changes approved under the “Omnibus V” package will also accelerate defense investments and procurement within the EU, reports «DS», citing UNIAN and the PromPolitInform portal.

“To strengthen cooperation with Ukrainian entities, Members of the European Parliament and member states have agreed that costs associated with conducting tests in Ukraine—as a candidate country—will be eligible for funding from the European Defence Fund,” the statement reads.

These changes simplify the management and implementation of European Defence Fund programs. They also clarify the selection criteria for defense projects and provide for increased funding for initiatives involving small and medium-sized enterprises (SMEs).

Overall, the European Parliament backed three legislative acts within the “Omnibus V” package: accelerating authorization procedures for defense readiness projects, simplifying the movement of defense products and procurement within the EU, and facilitating investment and operations within the defense industry. “The proposals aim to support defense investments of up to €800 billion over the next four years under the ‘ReArm Europe / Readiness 2030’ plan, enabling member states and the defense industry to better respond to growing security challenges,” the European Parliament notes.

To facilitate the construction of defense facilities or the expansion of existing production capacities, a standard EU-wide deadline of 42 working days—calculated from the moment an application is confirmed as complete—is being introduced for permit decisions.

In exceptional cases, such as for complex projects or where risks to the environment, health, or worker safety exist, this timeframe may be extended. However, the total duration of the procedure must not exceed 102 working days.

If national authorities fail to reach a decision within the prescribed timeframe, the principle of “tacit approval” will apply. EU states must also establish single points of contact to guide defense projects, ensure digital tracking of applications, and assist small and medium-sized enterprises.

A separate legislative act introduces a general license for the transfer of defense products between EU countries. This is intended to simplify operations for defense companies within the European market and make the conditions for cross-border supplies more predictable.

Additionally, the thresholds for applying EU public procurement rules are being raised, the maximum duration of defense framework contracts is being extended from seven to ten years, and member states are gaining greater opportunities to conduct joint procurement. EU countries will be permitted to apply specific exemptions from European environmental and chemical regulations for defense purposes, provided such decisions are duly justified.