The Council of the European Union announced on Wednesday that it has reached a provisional agreement with European Parliament negotiators on new legislation aimed at simplifying defence and security procurement procedures, facilitating defence investments and strengthening Europe’s defence industry.

According to the council, the agreement introduces measures to reduce administrative delays in defence procurement, licensing procedures, reporting obligations and cross-border cooperation, creating a clearer and more efficient framework for both member states and industry.

In a statement, Deputy Minister for European Affairs Marilena Raouna said the agreement simplifies rules for defence-related projects and boosts support for the European defence industry.

She described the deal as an important development in two key priorities of the Cypriot presidency of the Council of the EU: strengthening Europe’s defence readiness and enhancing competitiveness.

“Defence readiness and competitiveness go hand in hand for a strategically autonomous Europe,” she said.

The provisional agreement includes measures to simplify the management and implementation of the European Defence Fund (EDF), while also clarifying how EU environmental and chemicals legislation applies to activities linked to defence preparedness.

Under the agreed text, administrative requirements for applying for EDF funding will be reduced, support for small and medium-sized enterprises (SMEs) will be strengthened and greater predictability will be introduced in the fund’s implementation.

The agreement also preserves the ability of European public bodies, including the European Defence Agency, to act as central purchasing authorities.

The council said member states that co-finance EDF projects will gain access rights to project results, while intellectual property rights belonging to industrial partners will continue to be protected.

Additional incentives will also be introduced to encourage SME participation in EDF projects through higher funding rates for projects involving smaller companies.

On environmental and health provisions, the agreement maintains amendments proposed by the European Commission regarding exemptions for the use of specific chemical substances for defence readiness purposes, while preserving high standards of protection for human health and the environment.

The agreement also establishes a harmonised framework to accelerate licensing procedures for defence readiness projects across the EU.

According to the council, the maximum duration of licensing procedures will be capped at 102 working days.

The text also retains the commission’s proposal that applications will be deemed approved if the relevant authority fails to issue a decision within the prescribed deadline.

However, member states will be able to exclude specific cases from the silent approval mechanism where there are serious risks to public health or national security.

The agreement further seeks to remove administrative barriers in defence and security procurement, facilitate the movement of defence products within the EU and strengthen cooperation among member states.