EU Defence Omnibus Needs Long-Term Vision

ZPP supports the simplification of procurement rules, especially the proposed increase in thresholds under the Defence Procurement Directive. Reducing administrative burdens will help speed up investments in urgently needed defence capabilities. It also lowers entry barriers for smaller suppliers, encouraging innovation.

However, the focus on immediate gaps—such as restocking ammunition or vehicles—risks neglecting the deeper need for structural reform. Defence procurement should not be limited to emergency responses. A clear and predictable purchasing calendar is essential to allow industries to plan investments and scale production capacity over time.

ZPP also recommends evaluating the participation of third-country-owned companies that are already established and operating within the EU. Their involvement, under strict regulations, could help accelerate development and integration without compromising security.

Dual-Use innovation is underused

One of the key weaknesses ZPP identifies in the Omnibus is its limited emphasis on dual-use technologies—solutions that serve both civilian and military purposes. These technologies can be quickly adapted in crisis situations and use existing infrastructure and supply chains. Prioritising them can enhance both defence readiness and economic resilience.

Infrastructure, such as transport and secure communication networks, plays a critical dual role in defence and civilian life. Investments in these areas serve broader strategic goals and should not be overlooked. Well-developed mobility systems are as crucial for military logistics as they are for economic cohesion.

Moreover, dual-use development can attract private companies that are otherwise hesitant to engage in the defence sector. When innovations have civilian applications, the commercial potential increases, making it easier to build a sustainable and innovative industrial base.

Innovation needs balance, not just startups

While the Commission rightly supports startups for their role in innovation, ZPP warns against an overreliance on young companies. Startups often lack the capacity to scale up production, especially for complex military systems. Betting too heavily on them creates risks and could lead to inefficiencies.

Mid-sized and established companies are already producing technologies used on the frontlines. These firms are better equipped to ramp up production quickly and meet operational requirements. Supporting them more actively ensures that the EU defence sector remains reliable under pressure.

ZPP calls for a more balanced approach—one that encourages collaboration between innovative startups and experienced manufacturers. This model would combine cutting-edge research with industrial capacity, enabling both breakthrough ideas and practical implementation.

Conclusion

The Defence Readiness Omnibus is a welcome initiative that addresses many of the urgent challenges facing the European defence sector—streamlining procedures, accelerating procurement, and improving access to funding. These measures are timely and necessary, particularly in light of growing geopolitical tensions. The Union of Entrepreneurs and Employers (ZPP) recognizes the value of these reforms and their potential to jump-start industrial coordination and innovation across the EU. However, speed alone is not enough. Without clear frameworks for long-term investment, strategic infrastructure, and stable procurement, the Omnibus risks becoming a short-term patch rather than a lasting solution.

To build a resilient and competitive defence industry, the EU must move beyond immediate fixes and develop comprehensive, forward-looking policies. This includes prioritising dual-use technologies, supporting both startups and established companies, modernising education and workforce development, and harmonising national regulations for cross-border collaboration. Defence readiness is not only about capacity today—it is about ensuring that Europe can respond effectively tomorrow and in the decades to come. ZPP urges the European Commission to embrace a broader vision that integrates security, sustainability, and industrial strength into a unified strategy for lasting European defence resilience.

Based on:Union of Entrepreneurs and Employers, „Position Paper on the Defence Readiness Omnibus.” Full version available at: Position Paper on the Defence Readiness Omnibus