ARTICLE
4 July 2025

European Commission Proposes Defence Readiness Omnibus: Regulatory Reform For Strategic Sectors

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A&O Shearman

Contributor

A&O Shearman was formed in 2024 via the merger of two historic firms, Allen & Overy and Shearman & Sterling. With nearly 4,000 lawyers globally, we are equally fluent in English law, U.S. law and the laws of the world’s most dynamic markets. This combination creates a new kind of law firm, one built to achieve unparalleled outcomes for our clients on their most complex, multijurisdictional matters – everywhere in the world. A firm that advises at the forefront of the forces changing the current of global business and that is unrivalled in its global strength. Our clients benefit from the collective experience of teams who work with many of the world’s most influential companies and institutions, and have a history of precedent-setting innovations. Together our lawyers advise more than a third of NYSE-listed businesses, a fifth of the NASDAQ and a notable proportion of the London Stock Exchange, the Euronext, Euronext Paris and the Tokyo and Hong Kong Stock Exchanges.
On June 17, 2025, the European Commission (EC) published a communication introducing the Defence Readiness Omnibus, followed by a legislative package on June 18, 2025.
European Union Government, Public Sector

On June 17, 2025, the European Commission (EC) published a communication introducing the Defence Readiness Omnibus, followed by a legislative package on June 18, 2025. This initiative is part of a broader series of "omnibus" reforms aimed at streamlining and modernizing the EU's regulatory framework.

The proposed package targets the defense sector, suggesting amendments to at least ten legislative instruments, spanning both sector-specific and cross-sector regulations. Its primary objective is to improve regulatory efficiency, reduce administrative complexity, and support the development of industrial capabilities across the EU.

This reform comes in response to evolving policy priorities under the ReArm Europe Plan and Readiness 2030, and is designed to facilitate significant investment, estimated at EUR800 billion over the next four years, by creating a more agile and responsive regulatory environment.

Key changes include adjustments to the permitting, procurement, and financing processes for projects within the scope of the legislation. Businesses operating in the relevant sectors should prepare for revised eligibility criteria, streamlined procedures, and expanded regulatory exemptions.

We have prepared a client alert outlining the principal regulatory developments, potential business implications, and legal considerations for stakeholders.

The alert can be requested free of charge here.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.

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