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# EU Adopts Defense Industry Reforms, Sets 102-Working-Day Permit Limit
- URL: https://www.adriadefense.com/eu-adopts-defense-industry-reforms-sets-102-working-day-permit-limit/
- Published: 2026-10-11T06:00:00.000Z
- Updated: 2026-10-11T05:59:59.000Z
- Description: The EU has approved new defense industry rules introducing a 102-working-day permit limit, simpler procurement and easier cross-border military transfers.
- Author: AdriaDefense Desk
- Tags: European Union, Industry, EU, Defense Industry

The European Union has given final approval to a package of legislative reforms intended to accelerate defense manufacturing, simplify military procurement and make it easier for companies to operate across EU borders.

The Council of the European Union adopted the legislation on October 9, completing the approval process for the bloc's Defence Readiness Omnibus, known as Omnibus V.

The package amends rules governing industrial permits, procurement contracts, cross-border transfers of military equipment and access to European defense funding.

### Defense Projects Face New Permit Deadlines

One of the most significant changes introduces a maximum permit-processing period of **102 working days** for defense readiness projects.

Under the new framework, applications may be considered approved if national authorities fail to issue a decision within the prescribed period. Member states can, however, establish exceptions where automatic approval would present a serious risk to public health or national security.

The measure addresses permitting delays affecting the development and expansion of defense industrial facilities. Its implementation will depend on the applicable legal procedures and national safeguards.

### Procurement and Cross-Border Transfers

The legislation also raises the financial thresholds at which EU defense procurement procedures apply, reducing administrative requirements for smaller contracts.

It allows greater flexibility in framework agreements, introduces provisions for occasional joint procurement and simplifies certain contract modifications.

For manufacturers operating in more than one EU country, the package introduces two new mandatory categories of general transfer licences. One covers transfers between certified suppliers and recipients. The other applies to transfers conducted through intra-EU industrial partnerships.

The changes are intended to reduce the licensing burden on companies supplying components, equipment and other defense-related products across national borders. They do not eliminate national controls over military exports to countries outside the EU.

### Easier Access to European Defense Funding

The reforms also modify the rules governing the European Defence Fund (EDF), including simpler application and administrative procedures.

Projects involving small and medium-sized enterprises will benefit from increased funding-rate incentives, while the legislation maintains provisions allowing European public bodies, including the European Defence Agency, to act as central purchasing organizations.

The package additionally adjusts elements of EU chemicals and environmental legislation applicable to defense readiness activities, while retaining safeguards for human health and the environment.

The European Commission first proposed the reforms in June 2025\. An agreement between the Council and European Parliament followed in June 2026.

The legislation must now be published in the Official Journal of the European Union. The new acts will enter into force on the twentieth day after publication, although individual provisions and national implementation requirements may have separate application arrangements.

The Council confirmed the final adoption in its [October 9 announcement](https://www.consilium.europa.eu/en/press/press-releases/2026/10/09/simplification-council-gives-final-green-light-to-new-laws-boosting-defence-industry-and-readiness/?ref=adriadefense.com).