EU investments in security and the defense industry are gaining momentum. The Readiness 2030 strategy envisions the integration of member states’ national defense industries and the development of new military technologies. The European Commission has also proposed various mechanisms to increase defense spending.
“The European Union has committed to security not just in words, but through concrete programs,”
emphasizes Michał Szczerba, MEP from the Civic Platform.
According to Szczerba, Readiness 2030 foresees massive growth in Europe’s defense industries and their integration. One of the key financial tools is the SAFE instrument – €150 billion in loans enabling European armies to modernize and strengthen their arsenals.
White Paper and the ReArm Europe Plan
On March 19, 2025, the European Commission unveiled a white paper on European defense – Readiness 2030. It outlines the framework for the ReArm Europe plan, which aims to mobilize over €800 billion to boost Europe’s defense capabilities. The SAFE loan facility, recently adopted by member states, will provide €150 billion to expand pan-European capacities, particularly in air defense and ammunition production. Loans will be granted exclusively for joint procurement projects involving at least two countries. Ukraine and EEA countries may also participate.
“Poland could be the biggest beneficiary of these funds. We are planning to use around 100 billion zlotys to strengthen our army with essential equipment and upgrades, but also to invest in the Eastern Shield – a comprehensive system of fortifications and modern technologies along the eastern border,”
notes Szczerba.
Regulatory Simplifications for the Defense Industry
At the same time, the EU is introducing a package of regulatory simplifications for the defense sector, including the Defence Readiness Omnibus – a review and reform of directives on joint procurement and defense product transit. The goal is to reduce administrative burdens related to reporting and compliance, allowing companies to operate more efficiently.
“This will speed up projects and investments in the defense industry, including those tied to environmental commitments. It simply means that new weapons and ammunition factories planned across Europe will be built faster,”
explains the MEP.
Protecting Critical Infrastructure
EU member states are also cooperating on protecting critical infrastructure, such as energy facilities, transmission networks, and telecom systems, including undersea cables in the Baltic Sea.
“The focus is primarily on securing critical infrastructure, with dedicated funding in place. Cybersecurity is a vital element, with a specific program to support these measures,”
says Szczerba.
According to ENISA, the EU’s cybersecurity agency, critical infrastructure sectors – including energy, healthcare, and public administration – remain frequent targets of cyberattacks, with ransomware incidents persisting at high levels.
Flexibility in Defense Spending
Several member states are using relaxed fiscal rules to fund defense. Sixteen countries, including Poland, have been allowed to exclude up to 1.5% of GDP in defense expenditures from excessive deficit procedures. Poland was among the first to establish a Security and Defense Fund, enabling municipalities to finance dual-use infrastructure projects.
“This can include underground garages in city centers that also serve as shelters in the event of war, or road infrastructure in eastern Poland enabling faster military mobility,”
explains Szczerba.
“It also covers cybersecurity tools and broader efforts to secure critical infrastructure – not just power plants, but also water and sewage systems. For instance, Warsaw’s water utility is already implementing extensive measures to protect against potential threats. Dual-use projects are very diverse, ranging from data protection to mobility infrastructure.”
Long-Term Budget Commitments
The EU’s 2028–2034 budget also foresees new tools to strengthen Europe’s defense potential. Under the defense and space segment of the European Competitiveness Fund, €131 billion has been allocated to support investments in defense, security, and space – five times more than in the previous multiannual financial framework. Meanwhile, the Connecting Europe facility for military mobility will see its defense component expanded tenfold, funding dual-use infrastructure across the continent.
