EU expands strategic technology funding to include defence sector

EU expands strategic technology funding to include defence sector
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The European Union will now support investment in defence technologies through the Strategic Technologies for Europe Platform (STEP), following the adoption of the Defence mini-omnibus Regulation and its entry into force on 23 December 2025.

The new legal framework enables STEP — currently focused on digital, clean and bio technologies — to extend support to a fourth sector, defence technologies, the European Commission said in a statement on Friday.

The Defence mini-omnibus Regulation incentivises defence-related investment in the EU budget as part of the wider ReArm Europe Plan.

The scope expansion is complemented by a mid-term review of the EU’s cohesion policy, the framework for funding economic development and reducing regional disparities, which now targets competitiveness and defence through STEP.

Funding and guidance

All investment opportunities under STEP, including those for defence technologies, are listed on the official STEP Portal, according to the Commission.

Since March 2024, close to EUR 24 billion of EU funding has been allocated to strategic technology projects under STEP across eight EU funding programmes.

To assist stakeholders managing these new opportunities, the European Commission published an updated STEP Guidance Note on the same day the regulation came into effect.

The new guidance clarifies how STEP will be applied to defence technologies, but does not override previous guidance released in May 2024, the Commission said.

The STEP Portal provides access to both guidance notes and the full text of the Defence mini-omnibus Regulation in 24 EU official languages.


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