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The EU’s Defense Readiness Roadmap and Omnibus: What Are the Competition Law Implications?
Crowell & Moring LLP | English | AcademicThink | Nov. 7, 2025 | Regulation
The European Commission has introduced the Defense Readiness Roadmap 2030 and the Defense Readiness Omnibus to facilitate at least €800 billion in defense investments over four years, aiming to ensure robust EU Member States’ defense capabilities by 2030. The Commission intends to adapt competition enforcement—covering antitrust, merger control, and State aid—to reflect the defense sector's unique circumstances and its role in defense readiness. This includes a notably more permissive approach to mergers and cooperative arrangements within the defense industry, although clear safe harbors have yet to be established.
In antitrust matters, the Commission is open to guiding collaborations that enhance production capacity or enable development of defense products that single companies cannot efficiently achieve alone, with consideration given to the resilience of defense supply chains. The Commission is revising its Merger Guidelines, factoring in the changed security landscape, but full updates are not expected until 2027. The effectiveness of these adaptations depends on achieving legal clarity for stakeholders.
State aid rules are set for the most significant changes. Measures supporting infrastructure investments crucial for military mobility will be excluded from State aid control as they are seen as public remit activities. More broadly, State aid supporting defense production capacity is generally exempt from prior Commission approval under Article 346(1)(b) TFEU, which allows Member States to protect essential security interests related to military equipment. This signals a broader interpretation of such security interests than previously applied, though limitations remain to avoid distortions in civilian markets. Other State aid not covered by Article 346 may benefit from more lenient assessments, including exemptions under existing frameworks, provided they contribute to defense readiness. The Commission commits to prioritizing and providing timely guidance on public support cases to enhance legal certainty.
Overall, these developments mark a strategic alignment of EU competition law enforcement with defense priorities, aiming to foster investment, consolidation, and collaboration within the fragmented European defense sector. Yet, much will depend on how effectively the Commission can offer precise regulatory guidance to enable public and private actors to navigate the revised competition landscape.