Making Europe’s Defence Industry Stronger Together

European Parliament resolution – 11 March 2026

Why a single defence market is needed

• Defence buying has been done mainly by each country, creating many small companies, different rules, and high costs for taxpayers.
• The result is a weak European defence industry, poor interoperability, and a lack of strategic independence.
• Reports by Letta, Draghi, Niinistö and the White Paper show that a single market could save up to 30 % of annual defence spending and give Europe a stronger, more competitive industry.
• Only 18 % of defence equipment purchases in 2022 were joint European projects, far below the 35 % target set by the European Defence Agency.
• 90 % of EU citizens want stronger EU cooperation on security and defence.

Key goals

1. Build a fully integrated single market for defence products and services.
2. Make the European defence industry more competitive, innovative and resilient.
3. Reduce dependence on non‑EU suppliers and improve supply‑chain security.
4. Create jobs and economic growth across all EU regions, especially in smaller states.
5. Ensure democratic legitimacy, transparency and public trust in defence spending.

Main obstacles

• Fragmented industry, different national rules, and slow implementation of EU directives.
• Lack of a clear framework for joint procurement, R&D, and state aid.
• Heavy use of national export controls and security‑clearance rules that block intra‑EU transfers.
• Limited participation of SMEs and start‑ups.
• Inadequate funding and long‑term investment guarantees.
• Poor coordination with NATO and other partners.

Proposed actions

• Re‑write Directive 2009/81/EC and Directive 2009/43/EC to simplify procurement and transfers.
• Use EU‑funded programmes (European Defence Fund, Defence Projects of Common Interest, Defence Innovation Scheme) to give long‑term, predictable demand for European products.
• Create a “buy‑European” policy that prioritises EU‑made equipment in all procurement.
• Treat Ukraine as part of the single market, allowing it to join EU defence programmes and supply chains.
• Establish a European defence innovation accelerator (like DARPA) to fund high‑risk, high‑reward projects.
• Harmonise security‑clearance and export‑control rules, and create a mutual‑recognition system for certifications.
• Strengthen the European Defence Agency’s mandate and resources to coordinate capability planning, standardisation and testing.
• Develop a “defence single‑market scoreboard” to track joint procurement, SME participation, job creation and cost savings.
• Encourage public‑private partnerships and skills programmes to attract young talent to defence technology.
• Ensure that competition and state‑aid rules are adapted to the unique needs of the defence sector, including a possible block exemption for EU‑funded R&D.
• Prepare contingency plans for rapid procurement and industrial ramp‑up in case of war or major crisis.

Conclusion
The resolution calls for swift, coordinated action by the EU, its Member States, and NATO to create a single, efficient, and resilient defence market that protects EU citizens, strengthens the European defence industry, and reduces dependence on external suppliers.