Headlines
EU Commission to float new project for boosting defence technologies
Published by Global Banking and Finance Review
Posted on November 18, 2025
2 min readLast updated: January 21, 2026
Global Banking and Finance Review
Company
Published by Global Banking and Finance Review
Posted on November 18, 2025
2 min readLast updated: January 21, 2026
The EU Commission proposes an initiative to enhance defence technologies, focusing on AI and quantum tech, to strengthen military capabilities.
BRUSSELS (Reuters) -The European Commission will propose a new initiative to help speed up the development and purchase of innovative defence technologies, according to a draft document seen by Reuters on Tuesday.
Europe is bolstering its defences amid concerns about an increasing threat from Russia since its 2022 invasion of Ukraine, and uncertainties about the future U.S. presence on the continent.
Officials say that one lesson from the war in Ukraine is the importance of new technologies for defence, but that European companies – especially small and medium-sized firms – continue to face challenges when trying to develop and market innovative solutions on a large scale.
The European Union's executive body is expected to present a defence industry transformation roadmap on Wednesday with the aim of accelerating the development and use of advanced technologies that could improve Europe’s military capabilities.
In its draft roadmap, the Commission said that modern warfare is being reshaped by integrating artificial intelligence, autonomous systems and quantum technologies into military capabilities.
“Europe must learn from Ukraine. Development and adoption of disruptive innovation should no longer be a nice-to-have policy,” the Commission wrote.
In the draft, which is subject to change, the Commission said it would air a proposal in early 2026 for a pilot initiative that will allow companies to test and refine new technologies, aiming to turn projects into defence products ready for sale quicker. It did not provide details on how much funding would be allocated to the project.
The Commission will also propose ways for different member countries to recognise each other's certifications for defence technologies, help companies access EU research facilities and encourage EU member governments to allocate at least 10% of arms budgets to emerging and disruptive technologies, according to the draft roadmap.
The Commission has previously announced that together with the European Investment Bank, it plans to help launch a fund of up to 1 billion euros ($1.16 billion) to provide growth capital for defence-related small- and medium-sized companies.
($1 = 0.8635 euros)
(Reporting by Lili Bayer; editing by Andrew Gray and Mark Heinrich)
The European Commission is the executive branch of the European Union responsible for proposing legislation, implementing decisions, and managing the EU's day-to-day operations.
Defense technologies refer to advanced systems and equipment developed for military purposes, including weapons, surveillance, and communication systems.
A roadmap is a strategic plan that outlines the goals, milestones, and actions needed to achieve specific objectives in defense technology development.
SMEs are businesses whose personnel numbers fall below certain limits, typically defined by the number of employees and annual turnover, playing a crucial role in the economy.
Artificial intelligence in military applications involves using advanced algorithms and machine learning to enhance decision-making, automate processes, and improve operational efficiency.
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