Nov 12, 3:01 PM
EU Lawmakers Warn of Funding Gaps Impeding Defence Start-Ups
A report backed by over 400 MEPs urges administrative cuts and targeted funding to scale up military technology across the bloc.
More than 400 members of the European Parliament have endorsed a parliamentary report warning that European defence start-ups and small businesses are struggling to bring military technologies to market due to funding shortages and administrative barriers. The document highlights two distinct financial and regulatory bottlenecks preventing emerging firms from scaling up operations.
According to the report's rapporteur, Latvian Green MEP Mārtiņš Staķis, the first obstacle occurs between early technology development and proving its military utility. The second gap emerges between validating a product and securing operational contracts from national militaries. Staķis noted that while European firms produce advanced defence innovations, many fail to enter commercial production or subsequently relocate operations to the United States. He added that current procurement systems remain structured around legacy defense requirements and maintain a low tolerance for operational risk.
The report calls on the European Union to adapt its funding instruments to cover both phases, helping smaller firms secure initial orders and subsequent procurement contracts. It also advocates for providing start-ups with broader access to military testing infrastructure, certification procedures, and end-users, alongside measures to reduce bureaucratic delays that benefit established defence contractors. European People’s Party MEP Riho Terras, a former commander of the Estonian defence forces, stated at an industry summit in September that the European defence sector remains unable to produce equipment at the required speed, volume, or quality standards.
The parliamentary findings coincide with broader European Union efforts under the European Commission’s Readiness 2030 plan. The project features a 150-billion-euro loan mechanism intended to boost the production of artillery systems, ammunition, anti-drone technologies, and air defence networks. Western intelligence agencies have identified 2030 as a period when Russia could potentially launch an attack against NATO, an alliance that includes 23 of the 27 EU member states. European officials have acknowledged persistent challenges in fulfilling these rearmament goals.
Written by Thomas Nussbaumer thomas.nussbaumer@alpineweekly.com
