Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL amending Regulations (EU) 2021/694, (EU) 2021/695, (EU) 2021/697, (EU) 2021/1153, (EU) 2023/1525 and 2024/795, as regards incentivising defence-related investments in the EU budget to implement the ReArm Europe Plan
Date: 2025-04-22
Institutions: Directorate-General for Defence Industry and Space, European Commission
Subjects: EU action, EU budget, EU financing, EU investment, European arms policy, European defence policy, artificial intelligence, cloud computing, dual-use technology, military equipment

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   EUROPEAN COMMISSION  Brussels, 22.4.2025  COM(2025) 188 final 2025/0103 (COD)  Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL amending Regulations (EU) 2021/694, (EU) 2021/695, (EU) 2021/697, (EU) 2021/1153, (EU) 2023/1525 and 2024/795, as regards incentivising defence-related investments in the EU budget to implement the ReArm Europe Plan (Text with EEA relevance)  
 
EXPLANATORY MEMORANDUM 

1. 

• 

CONTEXT OF THE PROPOSAL 

Reasons for and objectives of the proposal 

President Von der Leyen announced in the Political Guidelines that a new era for defence lies 
ahead of us. The EU will work in the next five years to build a true European Defence Union. 
The  last  decades  have  exposed  a  chronic  underinvestment  and  lack  of  efficient  spending  in 
our  military  capabilities,  affecting  the  production  capacities  of  the  European  defence 
technological  and  industrial  base  (EDTIB)  and  its  innovation  potential,  while  fragmenting 
nationally the defence market. To frame this new approach and to identify the EU investment 
needs, the European Commission and the High Representative presented a Joint White Paper  
- European Defence Readiness 2030 on 19 March 2025. 

The White Paper highlights that Member States face an acute and growing threat, requiring a 
coordinated reply in the spirit of solidarity. War, aggression and other hostile acts have been 
affecting the continent. The only way to ensure peace and deciding on the EU’s own future is 
to have the readiness to deter these actions. This requires strengthening the Union’s defence 
industry so that it can produce necessary equipment to deter potential aggressors. The EU has 
a strong foundation in terms of wealth and productive power to unleash resources and latent 
technological  and  industrial  power.  However,  the  current  state  of  defence  readiness  is 
compromised  by  decades  of  under-investment  in  the  sector,  underscoring  the  need  for  a 
unified effort to strengthen EU defence posture. 

To  develop  the  necessary  capabilities  and  military  readiness  to  credibly  deter  armed 
aggression and secure the future of the EU, a massive increase in European defence spending 
is  needed over a prolonged period. This  requires a combined and sustained effort at  the EU 
and Member States level to invest collectively in EU’s defence. This will provide the Union’s 
defence industry the long-term predictability it needs to invest in new production capacities.  

The STEP Regulation supports EU’s competitiveness and technological advantage. Support to 
the  development  and  manufacturing  of  certain  defence  technologies  is  today  possible  under 
STEP, including AI, cybersecurity technologies or drones.  

However,  the  EU  must  do  more  to  support  the  urgent  need  to  increase  European  defence 
investments with the EU budget.  

Following President von der Leyen’s letter on 4 March, addressed to the European Council, 
this  proposal  aims  to  extend  the  scope  of  STEP  by  introducing  a  fourth  strategic  sector 
covering  all  defence-related  technologies  and  products,  including  those  falling  under  the 
priority capability areas identified in the White Paper. 

STEP could be thus leveraged to direct additional resources and investments into the defence 
sector, notably its technological and industrial base.  

To that end, this proposal introduces modifications to the STEP Regulation, as well as to the 
regulations of other programmes covered by STEP:  the European Defence Fund (EDF), the 
Digital  Europe Programme (DEP) and Horizon  Europe  (HE).  In  addition,  this proposal  will 
also amend the regulation on supporting ammunition production (ASAP) and the Connecting 
Europe  Facility  (CEF)  to  further  channel  EU  funds  towards  defence  industry  and 
technologies.  

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The EDF amendment aims to enable cumulation of funding between the EDF and other Union 
programmes for the same action and introduces the possibility to transfer resources allocated 
to Member States under cohesion policy funds to the EDF. ASAP is also amended to enable 
for  similar  transfers  from  Member  States  and  to  extend  the  applicability  of  the  Regulation 
beyond 30 June 2025. 

The  DEP  amendment  stresses  the  support  to  dual-use  actions  as  a  general  and  specific 
objective  of  the  instrument  and  the  possibility  to  use  the  budget  flexibility  to  support 
additional  well  focused  investments  for  the  competitiveness  and  strategic  autonomy  of  the 
EU.  

The  Horizon  Europe  programme  amendment  will  enable  support  to  technologies  with 
potential dual-use applications under the European Innovation Council (EIC) Accelerator, as 
well  as  equity  support  for  technologies  with  a  focus  on  defence  applications  for  scale-up. 
Unused  amounts  and  potential  returns  from  investments  made  by  the  EIC  Fund  during  the 
pilot  phase  under  Horizon  2020  should  be  made  available  in  order  to  finance  additional 
projects in dual use and defence benefitting from the amended scope. 
Thanks to this proposal, the Commission could also award STEP Seals1 under HE, EDF and 
DEP to high potential projects in the defence sector, with the objective to attract funding from 
other sources (other EU funds, national funds, private or institutional investors).   

The Commission  proposed on 1 April  2025  to  modify the  European Regional Development 
Fund (ERDF)/Cohesion Fund (CF), Just Transition Fund (JTF) and European Social Fund + 
(ESF+) Regulations to further promote investments in defence as part of the mid-term review 
of Cohesion policy.  

This  proposal  complements  the  mid-term  review  of  Cohesion  policy.  The  extension  of  the 
scope  of  STEP  would  allow  investments  on  the  development  and  manufacturing  of  critical 
technologies in defence to be supported under the existing STEP specific objectives in ERDF 
and CF. Similarly, skills relevant for the development/manufacturing of critical technologies 
in the defence sector could be supported also under STEP through the ESF+.  

A coordinated approach  at  EU-level  is  needed to provide for seamless  mobility for military 
personnel  and  equipment  throughout  Europe.  CEF,  as  a  centrally  managed  programme,  can 
ensure the selection of military mobility projects with high EU added value and maturity for a 
fast  and  coordinated  implementation  across  Member  States,  based  on  the  military  mobility 
corridors.  CEF  also  guarantees  the  involvement  of  EU  Military  Staff  in  the  selection  of 
projects  and  that  selected  projects  comply  with  the  technical  standards  needed  for  dual-use 
transport infrastructure. 

The proposal for the mid-term review of the Cohesion policy enables Member States to use 
current  cohesion  funding  to  invest  in  defence  or  dual  use infrastructure  to  foster  military 
mobility,  benefiting  from  a  pre-financing  of  30%  of  the  amounts  programmed  and  the 
possibility to apply a Union financing of up to 100%. Those investments shall primarily focus 
on the four EU Priority Military Mobility Corridors. For investments in military mobility, the 
Communication accompanying the mid-term review of Cohesion policy encourages Member 
States  to  make  use  of  the  possibility  to  transfer  resources  allocated  to  them  in  shared 
management  to  CEF,  while  benefitting  from  the  same  advantageous  pre-  and  co-financing 

1 

The STEP Seal is the Sovereignty Seal defined in Regulation (EU) 2024/795 

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rates as cohesion funding. An amendment to the CEF Regulation is proposed to facilitate this 
process. 

The  CEF  programme  amendment  for  the  digital  sector  will  enable  the  connected  digital 
capacities  required  for  the  development  of  defence  products  and  technologies,  including 
connecting cloud, AI and AI Gigafactories.  

• 

Consistency with existing policy provisions in the policy area 

The  proposal  is  consistent  with  the  objectives  followed  by  the  EU  programmes  mentioned 
above  and  the  cohesion  policy  funds.  It  provides  targeted  amendments  of  Regulations  (EU) 
2021/694,  (EU)  2021/695,  (EU)  2021/697,  (EU)  2021/1153,  (EU)  2023/1525  and  (EU) 
2024/795. 

• 

Consistency with other Union policies 

The  proposal  is  limited  to  targeted  amendments  of  Regulations  (EU)  2021/694,  (EU) 
2021/695,  (EU)  2021/697,  (EU)  2021/1153,  (EU)  2023/1525  and  (EU)  2024/795  and 
maintains consistency with other Union policies.  

2. 

• 

LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY 

Legal basis 

The  proposal  is  based  on  Articles  114,  164,  172,  173,  175,  third  paragraph,  176,  177,  178, 
182,183, 188, and 192 (1) of the Treaty on the Functioning of the European Union. 

• 

Subsidiarity (for non-exclusive competence)  

The  proposal  aims  to  encourage  investments  in  defence  by  providing  incentives,  removing 
potential obstacles and ensuring greater flexibility and simplification. The same result cannot 
be achieved through actions at national level.  

• 

Proportionality 

The proposal aims at mobilising investments in defence and providing greater flexibility and 
simplification for accelerating investments. The measures do not go beyond what is necessary 
to achieve these goals.  

• 

Choice of the instrument 

A  Regulation  is  the  appropriate  instrument  as  it  provides  directly  applicable  rules  for  the 
support and because amendments have to be introduced to existing Regulations. 

RESULTS 
CONSULTATIONS AND IMPACT ASSESSMENTS 

EX-POST 

EVALUATIONS, 

OF 

STAKEHOLDER 

Ex-post evaluations/fitness checks of existing legislation 

3. 

• 

N/A  

• 

Stakeholder consultations 

N/A  

• 

Collection and use of expertise 

N/A  

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• 

Impact assessment 

This  proposal  does  not  create  a  new  instrument  but  is  implemented  through  existing  tools 
under the EU budget, which are amended to be able to better mobilise investment resources 
into defence. These existing instruments, such as Horizon Europe, Digital Europe Programme, 
the  European  Defence  Fund  or  Connecting  Europe  Facility,  have  been  subject  to  an  impact 
assessment.  This  analysis,  carried  out  in  impact  assessments  or  analytical  staff  working 
documents,  covers  the  most  significant  impacts  of  this  proposal.  For  these  reasons,  another 
impact assessment is not needed. Moreover, the limited and targeted changes do not require a 
separate impact assessment.  

• 

Regulatory fitness and simplification 

N/A  

• 

Fundamental rights 

N/A  

4. 

BUDGETARY IMPLICATIONS 

 This  initiative  will  be  financed  by  existing  resources,  within  the  agreed  envelopes  of  the 
programmes concerned and the allocated HR. 

The  proposal  will  reinforce  the  envelop  of  the  EIC  by  EUR  210  million  from  the  unused 
amounts and reflows of the EIC pilot of Horizon 2020. 

5. 

• 

OTHER ELEMENTS 

Implementation plans and monitoring, evaluation and reporting arrangements 

The implementation of the measure will be monitored and reported upon in the framework of 
the general reporting mechanisms established under each programme and fund.  

Explanatory documents (for directives) 

• 

N/A 

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2025/0103 (COD) 

Proposal for a 

REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL 

amending Regulations (EU) 2021/694, (EU) 2021/695, (EU) 2021/697, (EU) 2021/1153, 
(EU) 2023/1525 and 2024/795, as regards incentivising defence-related investments in the 
EU budget to implement the ReArm Europe Plan 

(Text with EEA relevance) 

THE EUROPEAN PARLIAMENT AND THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  on  the  Functioning  of  the  European  Union,  and  in  particular 
Articles 114, 164, 172, 173, Article 175, third paragraph, Articles 176, 177 and 178,182 183, 
188, 192(1) thereof, 

Having regard to the proposal from the European Commission, 

After transmission of the draft legislative act to the national parliaments, 
Having regard to the opinion of the European Economic and Social Committee2,  
Having regard to the opinion of the Committee of the Regions3,  

Acting in accordance with the ordinary legislative procedure, 

Whereas: 

(1) 

(2) 

2 
3 
4 

The unprecedented geopolitical instability and the rapid deterioration of regional and 
global threat levels require an urgent and significant step up of the Union spending on 
research  and  development,  industrial  capacity  and  development  of  infrastructures 
connected  with  security  and  defence.  As  identified  in  the  Joint  White  Paper  for 
European  Defence  Readiness  2030,  the  Union  should  do  more  to  support  the  urgent 
need to increase European defence-related investments with the Union budget. 

The  Strategic  Technologies  for  Europe  Platform  (STEP)  established  by  Regulation 
(EU) 2024/795 of the European Parliament and of the Council4 is an initiative aimed at 
boosting  Union  competitiveness  by  mobilizing  funds  from  11  existing  Union 
programmes  towards  critical  technologies  in  3  strategic  sectors:  digital  technologies 
and  deep 
technologies,  and 
biotechnologies.  As  such,  it  is  a  good  vehicle  to  mobilise,  in  a  coordinated  and 
synergetic  manner,  Union  resources  towards  defence,  including  key  digital  frontier 
technologies required for the development of defence products and technologies. 

innovation,  clean  and 

resource-efficient 

tech 

OJ C , , p. . 
OJ C , , p. . 
Regulation  (EU)  2024/795  of  the  European  Parliament  and  of  the  Council  of  29  February  2024 
establishing  the  Strategic  Technologies  for  Europe  Platform  (STEP),  and  amending  Directive 
2003/87/EC and Regulations (EU) 2021/1058, (EU) 2021/1056, (EU) 2021/1057, (EU) No 1303/2013, 
(EU)  No  223/2014,  (EU)  2021/1060,  (EU)  2021/523,  (EU)  2021/695,  (EU)  2021/697  and  (EU) 
2021/241 (OJ L, 2024/795, 29.2.2024, ELI: http://data.europa.eu/eli/reg/2024/795/oj) 

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(3)  While support to technologies having defence implications is possible today under the 
3  existing  strategic  sectors  identified  in  STEP,  it  appears  necessary  to  increase  the 
potentialities of development of research, industry and innovation in the defence area 
by  setting  out  a  fourth  strategic  sector  in  STEP  focussed  on  defence  technologies.  
This new strategic sector should  ensure that the STEP incentives are used to increase 
Union funding in defence technologies and contribute to European competitiveness in 
line  with  STEP  objectives.  Defence  technologies  should  be  understood  as  those 
referred  to  in  the  Annex  to    Directive  2009/43/EC  and  include,  in  particular, 
technologies  in  the  areas  identified  by  the  European  Council  on  March  6th  2025, 
namely:  air  and  missile  defence,  artillery  systems,  including  deep  precision  strike 
capabilities,  missiles  and  ammunition,  drones  and  anti-drone  systems,  strategic 
enablers,  including  in  relation  to  space  and  critical  infrastructure  protection,  military 
mobility,  cyber,  artificial  intelligence  and  electronic  warfare.  As  regards  artificial 
intelligence, AI Gigafactories  should become key infrastructures to expand rapidly the 
power of AI in defence technologies. 

(4) 

(5) 

In addition, in order to optimise the capacity of the programmes covered by STEP  to 
mobilize  Union’s  resources  towards  defence,  it  is  necessary  to  clarify  that  these 
programmes  can  pursue  objectives  and  activities  that  are  related  to  improving  the 
competitiveness of the European Defence Technological and Industrial basis (EDTIB) 
as well as research and development activities in the defence field. 

Horizon Europe established by Regulation (EU) 2021/695 of the European Parliament 
and  of  the  Council5  is  the  Union’s  key  funding  programme  for  research  and 
innovation.  The  European  Innovation  Council  (EIC)  Accelerator  established  by  that 
Regulation provides support, in particular, for innovations with breakthrough potential 
and  of  a  disruptive  nature  with  scale-up  potential  that  may  be  too  risky  for  private 
investors.  SMEs  operating  within  the  defence  sector  require  financing  for  the 
commercialization  of  innovative  products.  However,  these  companies  face  higher 
barriers to access finance compared to SMEs in other sectors. Whereas the support to 
defence research and development is done through the European Defence Fund (EDF), 
which  is  a  specific  programme  of  Horizon  Europe,  it  is  appropriate  to  open  the  EIC 
Accelerator for actions with potential dual-use applications. Support to scale-up under 
the EIC Accelerator should also be extended to  non-bankable SMEs, including start-
ups and non-bankable small mid-caps, including entities which have already received 
support from  the Accelerator  carrying out  breakthrough and disruptive non-bankable 
innovation with a focus on defence applications. This justifies a targeted exception to 
the  principle  set  out  in  Article  7(1)  of  Regulation  (EU)  2021/695  of  the  European 
Parliament  and  of  the  Council  according  to  which  research  and  innovation  activities 
under  Horizon  Europe  have  an  exclusive  focus  on  civil  applications  while  not 
undermining the objective of ensuring unnecessary duplications. 

(6)  Moreover, to ensure that appropriate resources are directed to the funding of dual use 
and  defence  projects  under  Horizon  Europe  it  is  appropriate  to  derogate  to  Article 
212(3)  of  the  Financial  Regulation  in  order  to  ensure  that  repayments,  including 
reimbursed  advances,  revenues  and  unused  amounts  net  of  fees  and  costs  of  EIC 
blended  finance  investment  component  of  the  EIC  pilot  under  Horizon  2020  are  not 

5 

Regulation (EU) 2021/695 of the European Parliament and of the Council of 28 April 2021 establishing 
Horizon  Europe  –  the  Framework  Programme  for  Research  and  Innovation,  laying down  its  rules  for 
participation and dissemination, and repealing Regulations (EU) No 1290/2013 and (EU) No 1291/2013 
(OJ L 170 12.5.2021, p. 1, ELI: http://data.europa.eu/eli/reg/2021/695/2024-03-01) 

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(7) 

(8) 

(9) 

directed  to  the  Union  budget  but  reinvested  in  the  EIC  Fund  in  order  to  finance 
additional projects in dual use and defence benefitting from the amended scope . The 
timeframe set out in Article 212(3) of the Financial Regulation should also be adapted, 
by inserting a derogation, to allow for that possibility. 

The  European  Defence  Fund  (EDF)  set  out  in  Regulation  (EU)  2021/697  of  the 
European Parliament and of the Council6, is the leading programme for enhancing the 
competitiveness,  innovation,  efficiency  and  technological  autonomy  of  the  Union’s 
defence  industry.  The  EDF  also  aims  at  supporting  actions  that  are  conducive  to 
developing  disruptive  technologies  for  defence.  In  order  to  better  address  the 
specificities of such actions, such as their small scale or their need for a quick support, 
it  is  appropriate  to  simplify  the  procedures  to  decide  on  the  support  of  these  actions 
while  in  the  same  time  framing  the  conditions  for  the  decision  on  such  a  support  in  
the work programme.   . 

It  is  also  necessary  to  exploit  synergies  between  EDF  and  other  Union  programmes. 
To that purpose, it should be possible for Member States, European Union institutions, 
bodies and agencies,  third countries, international financial institutions or  other third 
parties  to  provide  voluntary  contributions  to  the  Programme,  as  external  assigned 
revenues.  Voluntary  transfers  of  resources  allocated  to  Member  States  in  shared 
management  to  the  EDF  and  the  combination  of  contributions  from  EDF  with  other 
Union  programmes  for  specific  actions  should  be  possible,  provided  that  the 
cumulative Union support does not exceed the total eligible costs of the action. 

The  Digital  Europe  Programme  (DEP)  established  by  Regulation  (EU)  2021/694  of 
the European Parliament and of the Council7 aims to support and accelerate the digital 
transformation  of  the  European  economy,  industry  and  society  and  to  improve  the 
competitiveness  of  Europe  in  the  global  digital  economy.  In  this  context,  the 
programme  should  also  aim  at  supporting,  in  particular,  projects,  services  and 
competences with potential dual-use application under all its specific objectives.  

(10)  To  enhance  technological  sovereignty  and  competitiveness,  the  Union  needs  the 
computing, cloud and data infrastructures that AI leadership requires. As part of the AI 
Continent strategy, the AI factories and Gigafactories are essential for the Union to be 
able  to  compete  on  the  global  level  and  ensure  its  strategic  autonomy  and 
competitiveness  in  science,  dual  use  research  and  in  critical  industrial  sectors, 
including  the  defence  industry.  Such  next-generation  models  require  extensive 
connected  computing  infrastructure  for  breakthroughs  in  specific  domains  including 
defence.    It  is  therefore  appropriate  to  add,  in  the  Specific  Objective  1  –  High 
Performance Computing  of DEP, a supplementary operational  objective dedicated to 
the deployment and operation of AI Factories and new generation of IA Gigafactories 
specialised  in  developing,  training,  and  running  the  most  complex,  very  large,  AI 
models  and  applications,  including  hardware  and  software  necessary  for  such 
deployment. 

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Regulation (EU) 2021/697 of the European Parliament and of the Council of 29 April 2021 establishing 
the  European  Defence  Fund  and  repealing  Regulation  (EU)  2018/1092  (OJ  L  170  12.5.2021,  p.  149, 
ELI: http://data.europa.eu/eli/reg/2021/697/2024-03-01).  
Regulation (EU) 2021/694 of the European Parliament and of the Council of 29 April 2021 establishing 
the  Digital  Europe  Programme  and  repealing  Decision  (EU)  2015/2240  (OJ  L  166  11.5.2021,  p.  1, 
ELI: http://data.europa.eu/eli/reg/2021/694/2023-09-21) 

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(11) 

(12) 

In  the  specific  Objective  5  of  DEP  –  Deployment  and  Best  Use  of  Digital  Capacity 
and interoperability, it is also necessary to add, in the operational objective defined to 
support the public sector and areas of public interest, a reference to defence in order to 
clarify  that  the  financial  contribution  of  the  Union  under  such  an  Objective  can  be 
extended to that sector. 

It  is  also  necessary  to  adapt  the  eligibility  rules  that  might  be  set  out  in  the  work 
programme  of  DEP  so  that  it  is  possible  to  provide  that  legal  entities  established  in 
associated  countries  and  legal  entities  that  are  established  in  the  Union  but  are 
controlled  from  third  countries  are  not  eligible  to  participate  in  all  or  some  actions 
focused on technologies with dual-use potential under any specific objective. In such 
cases,  calls  for  proposals  and  calls  for  tenders  should  be  restricted  to  legal  entities 
established or deemed to be established in Member States and controlled by Member 
States or by nationals of Member States. 

(13)  Regulation (EU) 2023/1525 of the European Parliament and of the Council supporting 
ammunition  production  (ASAP)8  was  adopted  to  financially  support  the  urgent 
strengthening  of  the  EDTIB  responsiveness  and  ability  to  ensure  the  timely 
availability  and  supply  of  ground-to-ground  and  artillery  ammunition  as  well  as 
missiles.  Voluntary  transfers  of  resources  allocated  to  Member  States  in  shared 
management  to  the  ASAP  instrument  as  well  as  additional  voluntary  contributions 
from  Member  States  or  other  relevant  stakeholders  should  contribute  to  pursue  the 
support  to  ramping  up  the  Union’s  manufacturing  capacities  beyond  30  June  2025. 
Regulation  (EU)  2023/1525  should  therefore  be  amended  to  introduce  such  a 
possibility. Since that Regulation  has shown is usefulness to develop new production 
capacities  of  powder/propellant,  explosives,  shells,  testing  capacity,  and  missiles  all 
across the Union, it is  appropriate to  ensure that  its  application   is extended until  31 
December 2026. 

(14)  The  Connecting  Europe  Facility  (CEF)  set  out  in  Regulation  (EU)  2021/1153  of  the 
European Parliament and of the Council,9 aims to accelerate investment in the field of 
trans-European networks, enabling synergies between the transport, energy and digital 
sectors.  In  order  to  support  the  connected  computing  infrastructure  required  by 
defence products and technologies and beyond these areas, the objectives of the CEF 
digital  sector  within  that  Regulation  should  be  extended  to  the  deployment  and 
provision of digital capacities such as cloud, AI and AI Gigafactories.   

(15)  Military mobility is also one of the objectives of the CEF programme. The Joint White 
Paper  for  European  Defence  Readiness  2030  recognised  military  mobility  as  an 
essential  enabler  for  European  security  and  defence  and  stressed  the  Union  added-
value  in  supporting  dual-use  infrastructure  for  mobility.  The  mid-term  review  of  the 
European  Regional  Development  Fund  (ERDF)  and  the  Cohesion  Fund  both 
established  by  Regulation  (EU)  2021/1058  of  the  European  Parliament  and  of  the 

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ammunition 

Regulation  (EU)  2023/1525  of  the  European  Parliament  and  of  the  Council  of  20  July  2023  on 
supporting 
7–25, 
ELI: http://data.europa.eu/eli/reg/2023/1525/oj) 
Regulation (EU) 2021/1153 of the European Parliament and of the Council of 7 July 2021 establishing 
the Connecting Europe Facility and repealing Regulations (EU) No 1316/2013 and (EU) No 283/2014 
(OJ L 249 14.7.2021, p. 38, ELI: http://data.europa.eu/eli/reg/2021/1153/2024-07-18) 

production 

24.7.2023, 

(ASAP) 

185, 

(OJ 

p. 

L 

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Council10  introduced the possibility to  invest in  defence or dual  use infrastructure to 
foster  military  mobility  benefiting  from  a  pre-financing  of  30%  of  the  amounts 
programmed  and  the  possibility  to  apply  a  Union  financing  of  up  to  100%.  In  cases 
where  Member  States  transfer  resources  allocated  to  them  in  shared  management  to 
CEF they should benefit from the same conditions on pre-financing and co-financing 
for dual-use transport infrastructure projects as introduced in the ERDF and Cohesion 
Fund.  In  such  a  case,  these  amounts  should  be  reserved  to    projects  developing  the 
Military  Mobility  corridors  as  identified  by  the  Member  States  in  Military 
Requirements  for  Military  Mobility  within  and  beyond  the  Union  as  well  as  digital 
connectivity and capacities.. 

(16)  Regulations  (EU)  2021/694,  (EU)  2021/695,  (EU)  2021/697,  (EU)  2021/1153,  (EU) 

2023/1525 and (EU) 2024/795 should therefore be amended accordingly.  

(17)  Given  the  urgent  need  to  enable  crucial  investments  in  defence  in  the  context  of 
pressing  geopolitical  challenges,  this  Regulation  should  enter  into  force  on  the  day 
following that of its publication in the Official Journal of the European Union. 

(18)  Since the objective of this Regulation, namely to strengthen research and development 
activities in dual use and defence, improve the competitiveness of the Union’s defence 
industry and therefore contribute to the Union’s defence by refocusing investments of 
these critical priorities, cannot be sufficiently achieved by the Member States, but can 
rather be better achieved at Union level, the Union may adopt measures in accordance 
with the principle of subsidiarity as set out in Article 5 TEU. In accordance with the 
principle  of  proportionality  as  set  out  in  that  Article,  this  Regulation  does  not  go 
beyond what is necessary to achieve those objectives, 

HAVE ADOPTED THIS REGULATION: 

Article 1 

Regulation (EU) 2021/694 [Digital Europe Programme] is amended as follows: 

(1) 

in Article 3 (1), second subparagraph, the following point is added: 

‘(c) support dual-use projects, services, competences and applications.’; 

(2) 

in Article 4 (1) the following point is added: 

‘(d) deploy and operate AI Factories and new generation AI Gigafactories specialised 
in  developing,  training,  and  running  the  most  complex,  very  large,  AI  models  and 
applications, including hardware and software necessary for such deployment.’; 

(3) 

in Article 8 (1),  point (a) is replaced by the following: 

‘(a)  support  the  public  sector  and  areas  of  public  interest,  such  as  health  and  care, 
education,  judiciary,  customs,  defence,  transport,  mobility,  energy,  environment, 
cultural  and  creative  sectors,  including  relevant  businesses  established  within  the 
Union, to effectively deploy and access state-of-the-art digital technologies, such as 
HPC, quantum, AI and cybersecurity;’; 

(4) 

in Article 12, paragraph 5 is replaced by the following: 

10 

Regulation  (EU)  2021/1058  of  the  European  Parliament  and  of  the  Council  of  24  June  2021  on  the 
European  Regional  Development  Fund  and  on  the  Cohesion  Fund  (OJ  L  231  30.6.2021,  p.  60, 
ELI: http://data.europa.eu/eli/reg/2021/1058/2024-12-24)  

EN 

9 

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‘5.  The  work  programme  may  also  provide  that  legal  entities  established  in 
associated  countries  and  legal  entities  that  are  established  in  the  Union  but  are 
controlled  from  third  countries  are  not  eligible  to  participate  in  all  or  some  actions 
under Specific Objective 3 for duly justified security reasons, and in actions focused 
on technologies with dual-use potential under any specific objective. In such cases, 
calls for proposals and calls for tenders shall be restricted to legal entities established 
or deemed to  be established in  Member States and controlled by Member States or 
by  nationals  of  Member  States.    Such  restrictions  may  be  applied  to  access  to  the 
capacities deployed under such calls.’ 

Regulation (EU) 2021/695 [Horizon Europe] is amended as follows: 

(1) 

In Article 46, the following paragraph 4a is inserted: 

Article 2 

‘4a.  By  derogation  from  Article  212(3)  of  the  Financial  Regulation,  repayments 
including reimbursed advances, revenues and unused amounts net of fees and costs 
of EIC blended finance of the EIC pilot under Horizon 2020 shall be considered to be 
internal  assigned  revenues  in  accordance  with  Article  21(3),  point  (f)  and  Article 
21(4) and (5) of the Financial Regulation and the time restriction of two years set out 
in the second subparagraph of Article 212(3) of the Financial Regulation shall apply 
as from [date of entry into force of this Regulation].’ 

(2) 

Article 48(1), second subparagraph is amended as follows: 

(a) 

 in point (a), the following sentence is added: 

‘As an  exception to Article 7(1), such support may include potential dual-use 
applications.’; 

(b) 

in point (b) the following sentence is added: 

‘As an exception to Article 7(1), such support may include potential dual-use 
applications.’; 

(c) 

 in point  (c), the following sentence is added: 

‘As an exception to Article 7(1), such support may include potential dual-use 
applications.’; 

(d) 

in point (d), the following sentence is added: 

‘As  an  exception  to  Article  7(1),  such  support  may  include  innovation  in 
critical technologies with focus on defence applications.’; 

Regulation (EU) 2021/697 [European Defence Fund] is amended as follows: 

(1) 

Article 6 is replaced by the following: 

Article 3 

EN 

10 

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‘Article 6 

Support for disruptive technologies for defence 

1. 

2. 

The  Commission  shall  support  actions  that  are  conducive  to  developing  disruptive 
technologies for defence in the areas of intervention defined in the work programmes 
referred to in Article 24. 

The  work  programmes  shall  lay  down  the  most  appropriate  forms  of  funding, 
selection  and  award  criteria  and  procedures,  and  implementation  for  disruptive 
technologies for defence.’; 

(2) 

the following Article is inserted: 

1. 

2. 

3. 

4. 

‘Article 8a 

Cumulative funding and transfers of resources 

An action that has received a contribution from another Union programme may also 
receive a contribution  under the Programme, provided that the contributions  do not 
cover the same costs. The rules of the relevant Union programme shall apply to the 
corresponding  contribution  to  the  action.  The  support  from  the  different  Union 
programmes may be calculated on a pro-rata basis in accordance with the documents 
setting out the conditions for support. 

Resources allocated to Member States under shared management may, at the request 
of  the  Member  State  concerned,  be  transferred  to  the  Programme  subject  to  the 
conditions set out in the relevant provisions of Regulation (EU) 2021/1060 for 2021-
2027. The Commission shall implement those resources directly in accordance with 
point  (a)  of  the  first  subparagraph  of  Article  62(1)  of    the  Financial  Regulation  or 
indirectly in accordance with point (c) of that subparagraph. Such resources shall be 
used for the benefit of the Member State concerned.  

Resources  transferred  in  accordance  to  paragraph  2  of  this  Article  may,  by 
derogation  from  Article  13(2)  of  this  Regulation,  be  used  for  the  purpose  of 
contributing to the funding of eligible actions under Article 10 of this Regulation up 
to 100 % of the eligible costs. 

Where  the  Commission  has  not  entered  into  a  legal  commitment  under  direct  or 
indirect management for resources transferred in accordance with paragraph 3 and at 
the latest by 30 September 2027, the corresponding uncommitted resources may  be 
transferred back to one or more respective source programmes, at the request of the 
Member  State  concerned,  in  accordance  with  the  conditions  set  out  in  the  relevant 
provisions of Regulation (EU) 2021/1060. 

Member  States,  European  Union  institutions,  bodies  and  agencies,  third  countries, 
international  organisations,  international  financial  institutions  or  other  third  parties, 
may  provide  additional  financial  contributions  to  the  Programme.  Such  financial 
contributions shall constitute external assigned revenue within the meaning of Article 
21(2), points (a), (d), or (e) or Article 21(5) of the Financial Regulation.’; 

Regulation (EU) 2021/1153 [Connecting Europe Facility]is amended as follows: 

Article 4 

EN 

11 

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(1) 

Article 3(2) is amended as follows: 

(c) point (c) is replaced by the following:  

‘(c  )  in  the  digital  sector:  to  contribute  to  the  development  of  projects  of  common 
interest  relating  to  the  deployment  of  and  access  to  safe  and  secure  very  high 
capacity  networks,  including  5G  systems,  to  the  set-up  and  deployment  of  digital 
capacities  such  as  cloud,  AI  and  AI  Gigafactories,  to  the  increased  resilience  and 
capacity  of  digital  backbone  networks  on  Union  territories  by  linking  them  to 
neighbouring  territories,  as  well  as  to  the  digitalisation  of  transport  and  energy 
networks.’; 

(2) 

in Article 8(4), the following point (f) is added:  

‘(f)  projects  of  common  interest  contributing  to  the  set-up  and  deployment  or 
significant  upgrade  of  digital  capacities,  including  cloud,  AI  and  AI  Gigafactories 
shall  be  prioritized  according  to  the  extent  they  significantly  contribute  to  improve 
transport,  energy  and  digital 
the  performance,  resilience  and  security  of 
infrastructures that are critical for the implementation of the internal market.’; 

(3) 

in Article 9(4), the following point (f) is added: 

‘(f)  actions  supporting  the  set-up  and  deployment  of  digital  capacities  in  cloud,  AI 
and AI Gigafactories.’; 

(4) 

in Article 15 (2), the following point (ba) is added: 

‘(ba) Subject to the transfer of the necessary resources to the CEF in the context of 
the  mid-term  review  of  programmes  supported  by  the  European  Regional 
Development  Fund  and  Cohesion  Fund  [add  legal  reference  to  Regulation  adopted 
pursuant to COM(2025)123, 2025/0084 (COD)], pursuant to Article 4(13), for works 
relating  to  the  specific  objectives  referred  to  in  Article  3(2),  point  (a)(ii),  the 
following conditions apply: 

(i) 

co-financing rates may be increased to a maximum of 100%; 

(ii) 

actions are entitled to a pre-financing payment representing at least 30% of the 
amount allocated in the grant agreement; 

(iii)  actions  shall  be  located  on  one  or  more  of  the  four  EU  Priority  Military 
Mobility  Corridors  identified  by  Member  States  in  Annex  II  to  the  Military 
Requirements  for Military Mobility  within  and beyond the  Union, as adopted 
by the Council on [18 March 2025 and with reference ST 6728/25 ADD1] and 
shall  comply  with  the  infrastructure  requirements  as  set  out  in  Commission 
Implementing Regulation (EU) 2021/1328. 

Regulation (EU) 2023/1525 [ASAP] is amended as follows: 

(1) 

in Article 6, the following paragraphs are inserted: 

Article 5 

‘3a.  Member  States,  Union  institutions,  bodies  and  agencies,  third  countries, 
international  organisations,  international  financial  institutions  or  other  third  parties, 
may  provide  additional  financial  contributions  to  the  Instrument.  Such  financial 
contributions shall constitute external assigned revenue within the meaning of Article 
21(2), points (a), (d) or (e), or Article 21(5) of the Financial Regulation. 

EN 

12 

  EN 

 
3b.  Resources  allocated  to  Member  States  under  shared  management  may,  at  the 
request of the Member States concerned, be transferred to the Instrument subject to 
the conditions set out in the relevant provisions of Regulation (EU) 2021/1060. The 
Commission  shall  implement  those  resources  directly  in  accordance  with  Article 
62(1),  first  subparagraph,  point  (a),  of  the  Financial  Regulation  or  indirectly  in 
accordance with point (c) of that subparagraph. Such resources shall be used for the 
benefit of the Member State concerned. 

3c.  Resources  transferred  in  accordance  to  paragraph  3b  of  this  Article  may,  by 
derogation  from  Article  19c(6)  of  this  Regulation,  be  used  for  the  purpose  of 
contributing to the funding of eligible actions under Article 13 of this Regulation up 
to 100 % of the eligible costs. 

3d. Where the Commission has not entered into a legal commitment under direct or 
indirect management for resources transferred in accordance with paragraph 3 and at 
the latest by 30 September 2027, the corresponding uncommitted resources may be 
transferred back to one or more respective source programmes, at the request of the 
Member  State  concerned,  in  accordance  with  the  conditions  set  out  in  the  relevant 
provisions of Regulation (EU) 2021/1060.’ 

(2) 

in Article 24, the second paragraph is replaced by the following: 

‘This  Regulation  shall  apply  until  31  December  2026.  That  shall  not  affect  the 
continuation  or  modification  of  actions  initiated  pursuant  to  this  Regulation  or  any 
actions necessary to protect the financial interests of the Union.’ 

In  Article  2(1),  point  (a)  of  Regulation  (EU) 2024/795,  [Strategic  Technologies  for  Europe 
Platform (STEP)] the following point is added: 

Article 6 

‘(iv)  defence technologies;’ 

Article 7 

This  Regulation  shall  enter  into  force  on  the  day  following  that  of  its  publication  in  the 
Official Journal of the European Union. 

This Regulation shall be binding in its entirety and directly applicable in the Member States in 
accordance with the Treaties. 

Done at Brussels, 

For the European Parliament 
The President 

For the Council 
The President 

EN 

13 

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LEGISLATIVE FINANCIAL AND DIGITAL STATEMENT 

1. 

1.1. 

1.2. 

1.3. 

FRAMEWORK OF THE PROPOSAL/INITIATIVE ................................................. 3 

Title of the proposal/initiative ...................................................................................... 3 

Policy area(s) concerned .............................................................................................. 3 

Objective(s) .................................................................................................................. 3 

1.3.1.  General objective(s) ..................................................................................................... 3 

1.3.2.  Specific objective(s) ..................................................................................................... 3 

1.3.3.  Expected result(s) and impact ...................................................................................... 3 

1.3.4. 

Indicators of performance ............................................................................................ 3 

1.4. 

1.5. 

The proposal/initiative relates to: ................................................................................. 4 

Grounds for the proposal/initiative .............................................................................. 4 

1.5.1.  Requirement(s) to be met in the short or long term including a detailed timeline for 

roll-out of the implementation of the initiative ............................................................ 4 

1.5.2.  Added value of EU involvement (it may result from different factors, e.g. 

coordination gains, legal certainty, greater effectiveness or complementarities). For 
the purposes of this section 'added value of EU involvement' is the value resulting 
from EU action, that is additional to the value that would have been otherwise 
created by Member States alone. ................................................................................. 4 

1.5.3.  Lessons learned from similar experiences in the past .................................................. 4 

1.5.4.  Compatibility with the multiannual financial framework and possible synergies with 
other appropriate instruments ....................................................................................... 5 

1.5.5.  Assessment of the different available financing options, including scope for 

redeployment ................................................................................................................ 5 

1.6. 

1.7. 

2. 

2.1. 

2.2. 

2.2.1. 

2.2.2. 

Duration of the proposal/initiative and of its financial impact .................................... 6 

Method(s) of budget implementation planned ............................................................. 6 

MANAGEMENT MEASURES................................................................................... 8 

Monitoring and reporting rules .................................................................................... 8 

Management and control system(s) ............................................................................. 8 

Justification of the budget implementation method(s), the funding implementation 
mechanism(s), the payment modalities and the control strategy proposed .................. 8 

Information concerning the risks identified and the internal control system(s) set up 
to mitigate them............................................................................................................ 8 

2.2.3.  Estimation and justification of the cost-effectiveness of the controls (ratio between 

the control costs  and the value of the related funds managed), and assessment of the 
expected levels of risk of error (at payment & at closure) ........................................... 8 

2.3. 

3. 

Measures to prevent fraud and irregularities ................................................................ 9 

ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE ............ 10 

EN 

1 

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3.1. 

Heading(s) of the multiannual financial framework and expenditure budget line(s) 
affected ....................................................................................................................... 10 

3.2. 

Estimated financial impact of the proposal on appropriations ................................... 12 

3.2.1.  Summary of estimated impact on operational appropriations.................................... 12 

3.2.1.1.  Appropriations from voted budget ............................................................................. 12 

3.2.1.2.  Appropriations from external assigned revenues ....................................................... 17 

3.2.2.  Estimated output funded from operational appropriations......................................... 22 

3.2.3.  Summary of estimated impact on administrative appropriations ............................... 24 

3.2.3.1. Appropriations from voted budget .............................................................................. 24 

3.2.3.2.  Appropriations from external assigned revenues ....................................................... 24 

3.2.3.3.  Total appropriations ................................................................................................... 24 

3.2.4.  Estimated requirements of human resources.............................................................. 25 

3.2.4.1.  Financed from voted budget....................................................................................... 25 

3.2.4.2.  Financed from external assigned revenues ................................................................ 26 

3.2.4.3.  Total requirements of human resources ..................................................................... 26 

3.2.5.  Overview of estimated impact on digital technology-related investments ................ 28 

3.2.6.  Compatibility with the current multiannual financial framework.............................. 28 

3.2.7.  Third-party contributions ........................................................................................... 28 

3.3. 

4. 

4.1. 

4.2. 

4.3. 

4.4. 

4.5. 

Estimated impact on revenue ..................................................................................... 29 

DIGITAL DIMENSIONS .......................................................................................... 29 

Requirements of digital relevance .............................................................................. 30 

Data ............................................................................................................................ 30 

Digital solutions ......................................................................................................... 31 

Interoperability assessment ........................................................................................ 31 

Measures to support digital implementation .............................................................. 32 

EN 

2 

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1. 

FRAMEWORK OF THE PROPOSAL/INITIATIVE  

1.1. 

Title of the proposal/initiative 

Proposal for a Regulation of the European Parliament and of the Council Amending 
Regulations (EU) 2021/694, (EU) 2021/695, (EU) 2021/697, (EU) 2021/1153, (EU) 
2023/1525 and 2024/795 as regards incentivising defence-related investments in the 
EU budget to implement the ReArm Europe Plan. 

1.2. 

Policy area(s) concerned  

A new era for European Defence and Security 

1.3. 

Objective(s) 

1.3.1.  General objective(s) 

To incentivise defence-related investments in the EU budget and strengthen the EU's 
defence industry and technological base in line with the ReArm Europe Plan.  

1.3.2. 

Specific objective(s) 

• 

• 

• 

• 

• 

• 

To  enable  the  extension  of  the  Strategic  Technologies  for  Europe  Platform 
(STEP) to  cover defence-related technologies and products,  and to  strengthen 
the EU's strategic autonomy in the defence sector.  

To  amend  the  European  Defence  Fund  (EDF)  to  1)  better  exploit  synergies 
with  other  Union  programmes  by  allowing  for  the  combination  of  EDF 
contributions  with  other  Union  programmes  for  specific  actions;  2)  allowing 
for  voluntary  transfers  of  resources  allocated  to  Member  States  in  shared 
management to the EDF ; 3) streamline the evaluation and funding process the 
development of disruptive technologies for defence..  

To amend the Act in Support of Ammunition Production (ASAP) Regulation to 
1)  introduce  the  possibility  of  voluntary  transfers  of  resources  allocated  to 
Member States in shared management to ASAP, as well as additional voluntary 
contributions from Member States or other relevant stakeholders; 2) extend the 
application  of  the  ASAP  Regulation  until  31  December  2026  to  ensure 
continued  support  for  the  development  of  new  production  capacities  for 
ammunition and related products. 

To  amend  the  Digital  Europe  Programme  (DEP)  to  enhance  its  focus  on 
strategic  autonomy  and  competitiveness,  and  better  support  dual-use 
technologies  and  applications.  This  includes  the  deployment  of  digital 
infrastructure such as  artificial intelligence, high-performance computing, and 
cybersecurity, e.g. through the development of AI Factories and Gigafactories. 
The amendment will also ensure that the programme's funding is used in a way 
that  aligns  with  the  EU's  strategic  interests,  including  by  adapting  eligibility 
rules for dual-use actions. 

To amend Horizon Europe to enable support to projects with potential dual-use 
applications under the European Innovation Council (EIC) Accelerator, as well 
as projects with a focus on defence applications under the EIC STEP scale-up. 

To  amend  the  Connecting  Europe  Facility  (CEF)  to  extend  its  digital  sector 
objectives to include the deployment and provision of digital capacities such as 

EN 

3 

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cloud,  AI,  and  AI  Gigafactories,  and  to  contribute  to  the  development  of 
interconnected  and 
projects  of  common 
multimodal  networks  and  infrastructure  for  smart,  interoperable,  sustainable, 
inclusive,  accessible,  safe  and  secure  mobility  in  accordance  with  the 
objectives of Regulation (EU) No 1315/2013. 

interest  relating 

to  efficient, 

1.3.3.  Expected result(s) and impact 

Specify the effects which the proposal/initiative should have on the beneficiaries/groups targeted. 

The proposed mini-omnibus regulation is expected to have the following effects on 
the beneficiaries and groups targeted: 

Increased  investments  in  defence:  the  proposal  will  provide  Member  States  with 
more  flexibility  to  use  the  EU  budget  to  address  their  defence  needs,  leading  to  a 
significant increase in defence investments, in line with the objectives of the ReArm 
Europe Plan. 

Enhanced  European  defence  technological  and  industrial  base  (EDTIB):  by 
supporting the development of defence and dual-use technologies, the proposal will 
enable  the  EU  to  reduce  its  dependence  on  non-EU  suppliers  and  strengthen  its 
strategic autonomy, ultimately strengthening the EDTIB. 

Improved  military  readiness,  capabilities,  and  mobility:  the  proposal  will  enable 
Member States to meet their defence capability gaps, develop the necessary military 
readiness  to  credibly  deter  armed  aggression,  and  enhance  military  mobility  across 
the continent, including through the develoment of Military Mobility corridors. The 
new pre- and co-financing rates for dual-use transport infrastructure projects should 
serve  as  incentives  for  Member  States  to  transfer  ressources  from  shared 
management  to  CEF,  enabling  a  coordinated  approach  to  military  mobility 
investments  across  Member  States  and  contributing  to  the  objectives  of  the  Joint 
White Paper for European Defence Readiness 2030. 

Support to SMEs and start-ups: by opening the European Innovation Council (EIC) 
Accelerator  and  EIC  Scale  Up  to  dual-use  and  defence  technologies,  the  proposal 
will promote innovation and competitiveness in the EU, strengthen the EDTIB, and 
provide opportunities for SMEs and start-ups to develop and grow. 

Increased  synergies  with  other  sectors:  the  proposal  will  facilitate  increased 
synergies  between  defence  and  other  sectors,  such  as  digital,  by  enabling  the 
financing  of  initiatives  like  AI  Factories  and  AI  Gigafactories,  as  well  asdual-use 
projects with potential spill-over effects for innovation and competitiveness in areas 
like research, technology, and industry. 

These expected results and impacts will benefit various stakeholders, including: 

-  Member  States,  by  providing  greater  flexibility  to  use  EU  funding  in  support  of 
security and defence  

- The EU defence industry, including SMEs and start-ups, by providing opportunities 
for growth and innovation and strengthening the EDTIB. 

- EU citizens, by contributing to peace, security and strategic autonomy  

1.3.4. 

Indicators of performance 

Specify the indicators for monitoring progress and achievements. 

EN 

4 

  EN 

Specific Objective 

Indicator 

Enhanced 
defence 
European 
technological  and  industrial  base 
(EDTIB) 
chain 
resilience 

supply 

and 

Improved military mobility 

Support to defence innovation 

Support  to  SMEs  and  start-ups 
developing  dual  use  and  defence 
technologies 

Increased  synergies  with  other 
sectors, such as digital 

1.4. 

The proposal/initiative relates to:  

Number  of  defence  projects  supported  by 
STEP 

of 

Number 
infrastructure 
transport 
components adapted to dual-use requirements 
Time  reduction  in  evaluation  and  award  of 
EDF 
disruptive 
related 
projects 
technologies for defence 

to 

funding 

receiving 

Number  of  defence  and  dual  use  SMEs  and 
start-ups 
the 
European 
(EIC) 
Council 
Innovation 
Accelerator and EIC STEP Scale Up 
Number of projects funded through DEP that 
have a dual-use or defence component 

through 

 a new action  
 a new action following a pilot project / preparatory action11  

  the extension of an existing action  

 a merger or redirection of one or more actions towards another/a new action 

1.5. 

Grounds for the proposal/initiative  

1.5.1.  Requirement(s) to be met in the short or long term including a detailed timeline for 

roll-out of the implementation of the initiative 

The proposal aims to address the need for increased and swift investments in defence 
and  the  development  of  a  strong  and  competitive  EDTIB,  in  line  with  the  ReArm 
Europe  Plan.  It  aims  to  introduce  changes  to  existing  EU  programmes,  including 
STEP,  Horizon Europe,  EDF,  ASAP, DEP, and  CEF, to  support defence and dual-
use  initiatives.  The  targeted  amendments  to  EU  Regulations  will  take  effect 
immediately  following  the  adoption  of  the  proposed  Regulation.  Where  relevant, 
they should be taken into account for the preparation and/or amendment of existing 
Work Programmes of relevant initiatives (Horizon Europe, CEF, DEP, STEP, EDF). 
This  will enable the launch of new calls for proposals  and the selection of projects 
that align with the EU and MS defence and security objectives. 

Timeline for implementation: 

The implementation timeline for the mini-omnibus regulation will be influenced by 
the  existing  programme  cycles  and  the  need  to  incorporate  the  changes  into  the 
respective work programmes. For most programmes, the changes are expected to be 
introduced  in  the  next  available  work  programme,  with  the  first  calls  for  proposals 
launched shortly thereafter. 

11 

As referred to in Article 58(2), point (a) or (b) of the Financial Regulation. 

EN 

5 

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For amendments that introduce the possibility for Member States to channel cohesion 
policy  funds  towards  defence-related  investments  (including  CEF,  STEP,  EDF, 
ASAP), in order to benefit from the additional pre-financing of 30% of the amounts 
programmed, Member States should submit their programme amendments by the end 
of 2025.  

1.5.2.  Added  value  of  EU  involvement  (it  may  result  from  different  factors,  e.g. 
coordination gains, legal certainty, greater effectiveness or complementarities). For 
the  purposes  of  this  section  'added  value  of  EU  involvement'  is  the  value  resulting 
from  EU  action,  that  is  additional  to  the  value  that  would  have  been  otherwise 
created by Member States alone. 

The added value of EU action lies in its ability to coordinate investments, maximise 
in  supporting  defence 
budget  efficiency,  and  achieve  greater  effectiveness 
investments  than  would  be  possible  for  any  individual  Member  State  acting  alone. 
The  EU's  role  in  promoting  a  coordinated  approach  to  defence  investment  enables 
MS to  address  their defence needs, which is  essential  for ensuring the security and 
stability of the EU and its Member States. 

Reasons for action at EU level (ex-ante): 

– 

– 

The  need  for  coordinated  investment  in  defence  to  address  common  security 
challenges  and  threats,  which  cannot  be  effectively  addressed  by  individual 
Member States alone. 

importance 

efficiency,  maximjising 
The 
complementarity of different funding programmes and reducing duplication of 
efforts, which can be achieved through EU-level coordination and cooperation. 

of  maximising 

budget 

Reasons for action at EU level (ex-ante): 

– 

– 

Support  defence  readiness  and  enhance  military  mobility,  which  will 
strengthen MS ability to respond to common security challenges and threats. 

Increased  competitiveness  and  innovation  in  the  European  defence  industry, 
resulting  from  the  EU's  coordinated  approach  to  defence  investment  and  the 
development of a strong and competitive European Defence Technological and 
Industrial Base (EDTIB). 

–  Maximisation  of  synergies  among  different  EU  financial  instruments  and 
enhanced sclae and scope, which will enable the EU to leverage its resources 
more effectively and achieve greater impact with its investments that individual 
MS, particularly for large scale projects.  

– 

Better  value  for  money,  resulting  from  the  efficient  use  of  resources  and 
reduced duplication of efforts, which will enable the EU to achieve more with 
its available  resources.  By combining  the resources  and expertise of different 
EU  programmes,  the  EU  can  create  a  more  comprehensive  and  integrated 
approach to  defence investment,  which  will yield greater benefits  and  returns 
than could be achieved through individual programmes alone. 

1.5.3.  Lessons learned from similar experiences in the past 

The EU has a track record of successfully adapting its funding instrumentsto respond 
to emerging challenges and priorities. For example, during the COVID-19 pandemic, 
the  EU  introduced  several  instruments  to  support  the  recovery  and  resilience  of 
affected  regions  and  communities,  including  the  Coronavirus  Response  Investment 

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Initiative  (CRII)  and  CRII+,  as  well  as  REACT-EU  (Recovery  Assistance  for 
Cohesion  and  the  Territories  of  Europe).  Additionally,  in  response  to  the  Russia-
Ukraine war and the resulting  energy price crisis, the EU proposed a more flexible 
use of its funding instruments to help Member States address various challenges. 

These  experiences  have  shown  that  adapting  EU  funding  instruments  can  be  an 
effective way to respond to evolving challenges and strategic priorities.. They have 
also  highlighted  the  importance  of  close  coordination  and  cooperation  between  the 
European Commission, Member States, and relevant authorities to ensure that funds 
are used effectively and efficiently. 

In the context of defence investment, the EU can draw on these lessons to ensure that 
the  adaptation  of  its  funding  instruments  is  done  in  a  way  that  is  transparent, 
accountable, and effective. By building on these past experiences, the EU can create 
a  more  flexible  and  responsive  framework  that  is  better  equipped  to  address  the 
complex and evolving security challenges facing the EU and its Member States. 

1.5.4.  Compatibility with the multiannual financial framework and possible synergies with 

other appropriate instruments 

The  proposed  targeted  amendments  to  the  relevant  EU  Regulations  are  fully 
compatible  with  the  existing  Multiannual  Financial  Framework  (MFF)  2021-2027. 
The amendments  do not  requireadditional funding from  the EU budget  at allnor do 
they  alter    the  overall  budget  allocation  for  most  of  the  programmes,  as  they  are 
designed  to  optimize  the  use  of  existing  resources  within  the  current  programmes. 
The  proposed  flexibilities  and  synergies  among  different  EU  financial  instruments, 
such as STEP, EDF, ASAP, CEF, and DEP, are also fully consistent with the existing 
MFF.  However,  to  achieve  the  objectives  of  the  mini-omnibus  proposal,  additional 
resources  originated  by  reflows  from  the  EIC  pilot  in  the  previous  MFF  under 
Horizon  2020  will  be  allocated  to  Horizon  Europe,  specifically  for  the  European 
Innovation  Council.  This  targeted  reinforcement  will  support  the  development  of 
innovative  defence  and  dual-use  technologies,  and  will  be  implemented  within  the 
existing MFF framework. 

The proposed amendments could help inform the future MFF by providing valuable 
insights  and  lessons  learned  from  the  implementation  of  the  current  programmes. 
The experience gained from the flexibilisation of cohesion funds and the creation of 
synergies  among  different  EU  financial  instruments  could  be  taken  into  account 
when  designing  future  EU  programmes  and  budget  allocations.  This  could  help  to 
ensure  that  future  EU  funding  is  more  effective,  efficient,  and  better  aligned  EU 
strategic priorities, including defence and security. 

1.5.5.  Assessment  of  the  different  available  financing  options,  including  scope  for 

redeployment 

The proposed targeted amendments to the relevant EU Regulations offer a range of 
financing options and opportunities for redeployment, which could help to optimize 
the use of existing resources and support the development of defence capabilities and 
technologies in the EU. 

One  of  the  financing  options  is  the  possibility  of  channeling  cohesion  funds  to 
support defence-related investments and activities, e.g. thorugh STEP.  

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The  European  Defence  Fund  (EDF)  amendment  aims  to  enable  cumulation  of 
funding between the EDF and other Union programmes for the same action, allowing 
for  a  more  comprehensive  and  integrated  approach  to  supporting  defence-related 
investments.  Additionally,  the  amendment  provides  for  the  possibility  to  transfer 
resources allocated to Member States under cohesion policy funds to the EDF, which 
would  enable  Member  States  to  redirect  their  cohesion  policy  funds  to  support 
defence-related investments. Moreover, the ASAP amendment will enable voluntary 
transfers of resources allocated to Member States under cohesion policy funds to the 
ASAP instrument, as well as additional voluntary contributions from Member States.  

The Digital Europe Programme (DEP) amendment provides for the possibility to use 
the  budget  flexibility  to  support  additional  well-focused  investments  for  the 
competitiveness and strategic autonomy of the EU, including dual use. 

The  Horizon  Europe  programme  amendment  will  enable  support  to  projects  with 
potential  dual-use  applications  under  the  European  Innovation  Council  (EIC) 
Accelerator  (grant  +  equities),  as  well  as  projects  with  a  focus  on  defence 
applications under the EIC Accelerator scale-up scheme (equity only).  

The  CEF  amendment  will  enable  the  connected  digital  capacities  required  for  the 
development of defence products and technologies, including connecting cloud, AI, 
and AI Gigafactories, as well as military mobility. This will support the development 
of infrastructure and technologies that are essential for security and defence. In CEF, 
the military mobility envelope (EUR 1.7 billion) has been fully allocated to projects 
in  2024  after  three  calls  or  proposals.  Transfers  of  Member  States  from  resources 
under shared management are therefore an option to support further military mobility 
projects under CEF.  

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1.6. 

Duration of the proposal/initiative and of its financial impact 

 limited duration  

–   in effect from 04/2025 to 31/12/2028 

–    Financial  impact  from  2025  to  2027  for  commitment  appropriations  and 

from 2025 to 2030 for payment appropriations.  

 unlimited duration 

– 

– 

Implementation with a start-up period from YYYY to YYYY 

followed by full-scale operation. 

1.7.  Method(s) of budget implementation planned12  

 Direct management by the Commission 

–   by its departments, including by its staff in the Union delegations;  

–   by the executive agencies  

 Shared management with the Member States  

 Indirect management by entrusting budget implementation tasks to: 

–   third countries or the bodies they have designated 

–   international organisations and their agencies (to be specified) 

–   the European Investment Bank and the European Investment Fund 

–   bodies referred to in Articles 70 and 71 of the Financial Regulation 

–   public law bodies 

–   bodies governed by private law with a public service mission to the extent 

that they are provided with adequate financial guarantees 

–    bodies  governed  by  the  private  law  of  a  Member  State  that  are  entrusted 
with  the implementation  of a public-private partnership and that  are provided 
with adequate financial guarantees 

–    bodies  or  persons  entrusted  with  the  implementation  of  specific  actions  in 
the  common  foreign  and  security  policy  pursuant  to  Title  V  of  the  Treaty  on 
European Union, and identified in the relevant basic act 

–   bodies  established  in  a  Member  State,  governed  by  the  private  law  of  a 
Member  State  or  Union  law  and  eligible  to  be  entrusted,  in  accordance  with 
sector-specific  rules,  with  the  implementation  of  Union  funds  or  budgetary 
guarantees, to the extent that such bodies are controlled by public law bodies or 
by  bodies  governed  by  private  law  with  a  public  service  mission,  and  are 
provided  with  adequate  financial  guarantees  in  the  form  of  joint  and  several 
liability by the controlling bodies or equivalent financial guarantees and which 
may be, for each action, limited to the maximum amount of the Union support. 

12 

Details of budget implementation methods and references to the Financial Regulation may be found on 
the BUDGpedia site: https://myintracomm.ec.europa.eu/corp/budget/financial-rules/budget-
implementation/Pages/implementation-methods.aspx. 

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Comments  

The method of budget implementation will depend on the specific programme affected by the 
amendment. In particular: 

For  Horizon  Europe/EIC  Accelerator,  implementation  is  expected  to  be  through  executive 
agencies (notably EISMEA); the EIC Fund is managed by the European Investment Bank.  

For STEP, CEF, DEP, EDF, and ASAP, direct management is foreseen.  

For CEF, the programme is  implemented through direct  management and fully delegated to 
the  European  Climate,  Infrastructure  and  Environment  Executive  Agency  (CINEA).  Some 
programme support actions are managed directly by the Commission  

For Cohesion Policy, shared management with MS will apply. 

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2. 

MANAGEMENT MEASURES  

2.1.  Monitoring and reporting rules  

The  targeted  amendments  in  the  Regulation  will  be  monitored  and  evaluated  in 
accordance  with  the  rules  and  procedures  established  in  the  relevant  programmes, 
namely  Horizon  Europe,  CEF,  DEP,  EDF,  ASAP,  and  STEP.  The  frequency  and 
conditions  for  monitoring  and  reporting  will  be  as  specified  in  the  respective 
programme regulations and agreements. 

Additionally,  for  provisions  related  to  Cohesion  Policy,  periodical  evaluation  and 
reporting  will  be  conducted  in  line  with  the  relevant  Cohesion  Policy  obligations, 
including the requirements for ex-ante evaluations, interim evaluations, and ex-post 
evaluations, as well as the reporting requirements set out in the applicable regulations 
and funding agreements. 

In general, the monitoring and reporting will be carried out on a regular basis, with 
the  specific  frequency  and  conditions  to  be  determined  by  the  relevant  programme 
authorities and in accordance with the applicable rules and regulations. 

2.2.  Management and control system(s)  

2.2.1. 

Justification  of  the  budget  implementation  method(s),  the  funding  implementation 
mechanism(s), the payment modalities and the control strategy proposed 

The proposed budget implementation methods, funding implementation mechanisms, 
payment  modalities,  and  control  strategy  are  based  on  the  existing  structures  and 
mechanisms  already  in  place  for  the  relevant  programmes  (Horizon  Europe,  CEF, 
DEP, EDF, ASAP, STEP). 

The  amendments  introduced  by  this  Regulation  do  not  introduce  any  alterations  in 
this  regard.  Instead,  they  build  upon  existing  frameworks  designed  to  ensure 
effective, efficient, and economical implementation of the programmes. 

The use of direct management, shared management, and executive agencies, as well 
as  the  funding  implementation  mechanisms  and  control  strategies  have  been 
established  and  tested  in  the  context  of  the  existing  programmes.  The  proposed 
amendments  do  not  require  significant  changes  to  these  existing  structures.  The 
Commission  will  rely  on  the  existing  expertise,  systems,  and  procedures  to 
implement the amended programmes. 

The control strategy, including the risk-based approach, ex-ante, interim, and ex-post 
controls, audits, and evaluations, will continue to be applied in accordance with the 
existing  rules  and  regulations  under  relevant  programmes.  The  Commission  will 
continue to monitor and report on the implementation of the programmes, including 
the  amended  provisions,  in  accordance  with  the  existing  requirements  and 
procedures. 

2.2.2. 

Information concerning the risks identified and the internal control system(s) set up 
to mitigate them 

The internal control systems in place for the existing programmes (Horizon Europe, 
CEF,  DEP,  EDF,  ASAP,  STEP)  have  been  designed  to  identify  and  mitigate  risks, 
including the risk of errors and irregularities. 

EN 

11 

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The  amendments  introduced  by  this  Regulation  do  not  fundamentally  alter  the  risk 
landscape of the existing programmes. The Commission will continue to rely on the 
existing internal control systems, which have been established to ensure the effective 
and efficient implementation of the programmes. 

2.2.3.  Estimation  and  justification  of  the  cost-effectiveness  of  the  controls  (ratio  between 
the control costs  and the value of the related funds managed), and assessment of the 
expected levels of risk of error (at payment & at closure)  

The cost-effectiveness of the controls for the amended programmes is expected to be 
in line with the existing programmes. The Commission will continue to rely on the 
existing  control  systems,  which  have  been  established  to  ensure  the  effective  and 
efficient  implementation  of  the  programmes,  as  the  amendments  do  not  introduce 
significant changes to programmes. 

The  Commission  will  continue  to  monitor  and  report  on  the  implementation  of  the 
programmes,  including  the  amended  provisions,  in  accordance  with  the  existing 
requirements and procedures.  

2.3.  Measures to prevent fraud and irregularities  

The  Commission  will  continue  to  apply  the  measures  envisaged  under  the 
programmes affected by the proposed Regulation to prevent fraud and irregularities, 
including measures are outlined in the Commission's anti-fraud strategy. 

The amended programmes will also be subject to the Commission's overall anti-fraud 
framework,  which  includes  regular  monitoring  and  reporting  on  fraud  risks  and 
incidents.  The  Commission  will  continue  to  work  closely  with  the  European  Anti-
Fraud Office (OLAF) and other relevant authorities to prevent and investigate fraud 
and irregularities. 

No  additional  measures  are  envisaged  at  this  stage,  as  the  existing  measures  are 
considered  to  be  adequate  to  prevent  fraud  and  irregularities  in  the  amended 
programmes. 

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3. 

3.1. 

ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE  

Heading(s)  of  the  multiannual  financial  framework  and  expenditure  budget 
line(s) affected  

• 

Existing budget lines  

In order of multiannual financial framework headings and budget lines. 

Budget line 

Type of 
expenditure 

Contribution  

Heading of 
multiannual 
financial 
framework 

Number  

Diff./Non-
diff.13 

from 
EFTA 
countries
14 

from 
candidate 
countries 
and 
potential 
candidates
15 

From 
other 
third 
countries 

other assigned 
revenue 

01.020301  European  Innovation  Council 
(Horizon Europe) 

Diff 

Yes 

Yes 

Yes 

13.04.01.00 – Military mobility 

Diff 

NO 

YES 

NO 

Non-diff. 

NO 

YES 

NO 

Yes 

NO 

NO 

1 

5 

5 

5 

13.01.03.01  –  Support  expenditure  for 
military mobility 

– 

European  Climate, 
13.01.03.74 
Infrastructure  and  Environment  Executive 
Agency  –  Contribution  from  Connecting 
Europe  Facility  (Transport)  for  military 
mobility 

Non-diff. 

NO 

YES 

NO 

NO 

13 
14 
15 

Diff. = Differentiated appropriations / Non-diff. = Non-differentiated appropriations. 
EFTA: European Free Trade Association.  
Candidate countries and, where applicable, potential candidates from the Western Balkans. 

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3.2. 

Estimated financial impact of the proposal on appropriations  

3.2.1. 

Summary of estimated impact on operational appropriations  

– 

– 

 

 

The proposal/initiative does not require the use of operational appropriations  

The proposal/initiative requires the use of operational appropriations, as explained below 

3.2.1.1.  Appropriations from voted budget 

Heading of multiannual financial framework  

Number 

5 Security and Defence 

EUR million (to three decimal places) 

Horizon Europe 

2023 

2024 

2025 

2026 

2027 

TOTAL 

Estimated operational appropriations stemming from repayments from the European Innovation Council Pilot under Horizon 2020* 

01.020301 European Innovation Council  Commitments 

(1a) 

Appropriations  of  an  administrative  nature  financed  from  the 
envelope of specific programmes16 

Total appropriations for Horizon Europe 

01.020301 European Innovation Council 

Commitments 

Payments 

(1a) 

(2a) 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m. 

p.m.  

p.m.  

16 

Technical and/or administrative assistance and expenditure are not detailed but included in the overall amounts indicated under operational lines. They should roughly correspond to the same 
percentages compared to administrative lines as the one occurred in the 2021-2024 period.    

EN 

1 

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DG: MOVE 

Year 

2025 

Year 

2026 

Year 

2027 

Year 

Post 2027 

TOTAL MFF 
2021-2027 

Operational appropriations  

Budget line  – Military mobility 

Budget line  

Commitments 

Payments 

Commitments 

Payments 

(1a) 

(2a) 

(1b) 

(2b) 

P.M.  

P.M.  

P.M.  

P.M.  

P.M. 

P.M.  

P.M.  

– 

line 

Support 

13.01.03.01 

Appropriations of an administrative nature financed from the envelope of specific programmes17 
Budget 
expenditure for military mobility 
Budget line 13.01.03.74 – European Climate, 
Infrastructure  and  Environment  Executive 
Agency  –  Contribution  from  Connecting 
Europe  Facility  (Transport)  for  military 
mobility 

P.M.** 

P.M.*  

(3) 

P.M.  

P.M.  

P.M. 

P.M. 

TOTAL appropriations 
for DG MOVE 

Commitments 

Payments 

=1a+1b+3 

=2a+2b+3 

P.M. 

P.M. 

P.M. 

P.M. 

P.M. 

P.M. 

P.M. 

P.M. 

P.M. 

P.M. 

0.000 

0.000 

P.M. 

P.M. 

P.M. 

P.M. 

TOTAL 

operational 

appropriations  

Commitments 

Payments 

(4) 

(5) 

Year 

2025 

Year 

2026 

Year 

2027 

Year 

Post-2027 

TOTAL MFF 
2021-2027 

P.M. 

P.M. 

P.M. 

P.M. 

P.M. 

P.M. 

0.000 

P.M. 

P.M. 

P.M. 

17 

Technical and/or administrative assistance and expenditure in support of the implementation of EU programmes and/or actions (former ‘BA’ lines), indirect research, direct research. 

EN 

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TOTAL appropriations of an administrative nature financed from 
the envelope for specific programmes  

TOTAL appropriations under HEADING 
5 

Commitments 

of the multiannual financial framework 

Payments 

(6) 

=4+6 

=5+6 

P.M. 

P.M. 

P.M. 

P.M. 

P.M. 

P.M. 

P.M. 

P.M. 

P.M. 

0.000 

P.M. 

P.M. 

P.M. 

P.M. 

P.M. 

•  TOTAL 
operational headings) 

operational 

appropriations 

(all 

Commitments 

Payments 

• TOTAL appropriations of an administrative nature financed from 
the envelope for specific programmes (all operational headings) 

TOTAL appropriations Under          Heading 
1 to 6 

Commitments 

of the multiannual financial framework 
(Reference amount) 

Payments 

(4) 

(5) 

(6) 

=4+6 

=5+6 

Year 

2025 

P.M. 

P.M. 

Year 

2026 

P.M. 

P.M. 

Year 

2027 

Year 

Post-2027 

TOTAL MFF 
2021-2027 

P.M. 

P.M. 

0.000 
P.M. 

P.M. 

P.M. 

P.M. 

0.000 

P.M. 

P.M. 

P.M. 

P.M. 

P.M. 

P.M. 

P.M. 

P.M. 

P.M. 
P.M. 

P.M. 

P.M. 

P.M. 

Heading of multiannual financial  framework  

7 

‘Administrative expenditure’18 

18 

The necessary appropriations should be determined using the annual average cost figures available on the appropriate BUDGpedia webpage. 

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DG: MOVE 

 Human resources  
 Other administrative expenditure  
TOTAL DG MOVE 

Appropriations  

TOTAL appropriations under HEADINGS 1 to 7 

Commitments 

of the multiannual financial framework  

Payments 

Year 

2025 

 P.M. 

 P.M. 

Year 

2026 

Year 

2027 

Year 
POST 
2027 

TOTAL 
MFF 2021-
2027 

0 

0 

0 

0 

0 

 P.M. 

P.M.  

 P.M. 

 P.M. 

P.M 

P.M 

P.M  

 P.M 

EUR million (to three decimal places) 

Year 

2025 

Year 

2026 

Year 

2027 

Year 

POST-2027 

TOTAL MFF 
2021-2027 

P.M 

P.M 

P.M. 

P.M. 

P.M. 

P.M. 

P.M  

P.M  

PM 

PM 

Year 

2025 

Year 

2026 

Year 

2027 

Year 

POST-2027 

TOTAL MFF 
2021-2027 

TOTAL 

operational 

appropriations  

Commitments 

Payments 

TOTAL appropriations of an administrative nature financed from 
the envelope for specific programmes  

TOTAL appropriations under HEADING 
5 

Commitments 

of the multiannual financial framework 

Payments 

(4) 

(5) 

(6) 

=4+6 

=5+6 

P.M. 

P.M. 

P.M. 

P.M. 

P.M. 

P.M. 

0.000 

P.M. 

P.M. 

P.M. 

P.M. 

0.000 

P.M. 

P.M. 

P.M. 

P.M. 

P.M. 

P.M. 

0.000 

P.M. 

EN 

4 

P.M. 

P.M. 

P.M. 

P.M. 

P.M, 

EN 

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
  
 
 
  
 
•  TOTAL 
operational headings) 

operational 

appropriations 

(all 

Commitments 

Payments 

• TOTAL appropriations of an administrative nature financed from 
the envelope for specific programmes (all operational headings) 

TOTAL appropriations under Headings 1 to 
6 

Commitments 

of the multiannual financial framework (Reference 
amount) 

Payments 

(4) 

(5) 

(6) 

=4+6 

=5+6 

Year 

2025 

Year 

2026 

Year 

2027 

Year 

POST-2027 

TOTAL MFF 
2021-2027 

P.M. 

P.M. 

P.M. 

P.M. 

P.M. 

P.M. 

0.000 

P.M. 

P.M. 

P.M. 

P.M. 

P.M. 

P.M. 

P.M. 

P.M. 

0.000 

P.M. 

P.M. 

P.M. 

P.M. 

P.M. 

P.M. 

P.M. 

P.M. 

P.M. 

Heading of multiannual financial framework  

7 

‘Administrative expenditure’19 

TOTAL appropriations under HEADINGS 1 to 
7 

Commitments 

of the multiannual financial framework  

Payments 

EUR million (to three decimal places) 

EUR million (to three decimal places) 

Year 

2025 

Year 

2026 

Year 

2027 

Year 

POST-2027 

TOTAL 
MFF 2021-
2027 

P.M 

P.M 

P.M. 

P.M. 

P.M 

P.M. 

P.M. 

P.M 

PM 

PM 

19 

The necessary appropriations should be determined using the annual average cost figures available on the appropriate BUDGpedia webpage. 

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3.2.3. 

Summary of estimated impact on administrative appropriations  

– 

– 

The  proposal/initiative  does  not  require  the  use  of  appropriations  of  an 

 
administrative nature  

  The proposal/initiative requires the use of appropriations of an administrative 
nature, as explained below 

3.2.3.1. Appropriations from voted budget 

VOTED 
APPROPRIATIONS 

Year 

2025 

Year 

2026 

Year 

2027 

Year 

POST-2027 

TOTAL 2021 
- 2027 

HEADING 7 

Human resources  

Other administrative expenditure  

Subtotal HEADING 7 

Outside HEADING 7 

Human resources - 13.01.03.74 – 
European Climate, Infrastructure 
and Environment Executive 
Agency – Contribution from 
Connecting Europe Facility 
(Transport) for military mobility* 
Other expenditure of an 
administrative nature 13.01.03.01 
– Support expenditure for military 
mobility** 

Subtotal outside HEADING 7 

TOTAL 

0 

 PM  

 PM  

0 

PM   

 PM  

0 

 PM  

 PM  

0 

 PM  

 PM  

0 

 PM  

 PM  

PM 

PM 

PM 

PM 

PM 

PM 

PM 

P.M 

PM 

PM 

P.M. 

PM 

PM 

PM 

PM 

P.M. 

P.M. 

PM 

PM 

P.M. 

3.2.4.  Estimated requirements of human resources  

– 

– 

  The proposal/initiative does not require the use of human resources  

 The proposal/initiative requires the use of human resources, as explained below 

3.2.5.  Overview of estimated impact on digital technology-related investments 

Compulsory: the best estimate of the digital technology-related investments entailed 
by the proposal/initiative should be included in the table below.  

Exceptionally,  when  required  for  the  implementation  of  the  proposal/initiative,  the 
appropriations under Heading 7 should be presented in the designated line.  

The appropriations under Headings 1-6 should be reflected as “Policy IT expenditure 
on operational programmes”. This expenditure refers to the operational budget to be 
used to re-use/ buy/ develop IT platforms/ tools directly linked to the implementation 
of the initiative and their associated investments (e.g. licences, studies, data storage 
etc).  The  information  provided  in  this  table  should  be  consistent  with  details 
presented under Section 4 “Digital dimensions”. 

TOTAL Digital and IT appropriations 

HEADING 7 

IT expenditure (corporate)  

Year 

Year 

Year 

Year 

2025 

2026 

2027 

POST-
2027 

TOTAL 
MFF 
2021 - 
2027 

0.000 

0.000 

0.000 

0.000 

0.000 

EN 

6 

  EN 

 
  
Subtotal HEADING 7 

0.000 

0.000 

0.000 

0.000 

0.000 

Outside HEADING 7 

Policy IT expenditure on operational 
programmes* 

Subtotal outside HEADING 7 

PM 

PM 

PM 

PM 

PM 

PM 

PM 

PM 

PM 

PM 

*Corporate IT expenditure on operational programmes financed by  13.01.03.01 – Support expenditure for 
military mobility 

TOTAL 

PM 

PM 

PM 

PM 

PM 

3.2.6.  Compatibility with the current multiannual financial framework  

The proposal/initiative: 

– 

can be fully financed through redeployment within the relevant heading of the 

 
multiannual financial framework (MFF) 

 This initiative will be financed by existing resources, within the agreed envelopes of 
the  programmes  concerned  and  the  allocated  HR.  The  proposal  will  reinforce  the 
envelop of the EIC by EUR 210 million from the unused amounts and reflows of the 
EIC  pilot  of  Horizon  2020.  The  reprogramming  will  require  redeployment  across 
headings  of  the  MFF  as  provided  by  the  Cohesion  Programme  and  Connecting 
Europe Facility regulations and the mid-term review of the Cohesion Programme. 

3.2.7.  Third-party contributions  

The proposal/initiative: 

 
3.3. 

– 

– 

does 
Estimated impact on revenue  

provide 

not 

for 

co-financing 

by 

third 

parties. 

 

The proposal/initiative has no financial impact on revenue. 

  The proposal/initiative has the following financial impact: 

–   

on own resources  

–   

on other revenue 

–    please indicate, if the revenue is assigned to expenditure lines 

Budget revenue line: 

Appropriations 
available for the 
current financial 
year 

            EUR million (to three decimal places) 

Impact of the proposal/initiative20 

Year 2024 

Year 2025  Year 2026 

Year 2027 

– 

For assigned revenue, specify the budget expenditure line(s) affected. 

This  initiative  will  be  financed  by  existing  resources,  within  the  agreed  envelopes  of  the 
programmes concerned and the allocated HR. The proposal will reinforce the envelop of the 

20 

As regards traditional own resources (customs duties, sugar levies), the amounts indicated must be net 
amounts, i.e. gross amounts after deduction of 20% for collection costs. 

EN 

7 

  EN 

 
 
 
 
 
 
 
 
 
 
EIC by EUR 210 million from the unused amounts and reflows of the EIC pilot of Horizon 
2020. 

– 

4. 

DIGITAL DIMENSIONS 

4.1. 

Requirements of digital relevance 

The proposed amendments do not establish any new requirements of digital relevance. The 
assessment  of  digital  relevance  has  already  been  conducted  for  each  of  the  programmes 
affected  by  the  amendments,  and  the  proposed  changes  do  not  introduce  any  additional 
obligations  or  provisions  related  to  the  collection,  processing,  generation,  exchange,  or 
sharing of data, the automation or digitalisation of stakeholders' processes, the use of new 
or  existing  digital  solutions,  or  digital  public  services.  Therefore,  no  additional 
requirements of digital relevance are identified in this proposal. 

EN 

8 

  EN