knowledge 5 November 2026 |

Omnibus V: Streamlining Defence Procurement and Readiness

By streamlining and adapting existing legislative frameworks, the package aims to support Europe’s defence sector in responding more effectively to evolving security challenges. We outline the principal legislative changes introduced by Omnibus V and discuss the key considerations for defence companies operating within the European Union.

What does “Omnibus V” comprise?

The Omnibus V package is a key legislative pillar of the EU’s Rearm/Readiness 2030 agenda, the EU’s plan to enhance defence readiness.  Omnibus V aims to simplify security and defence procurement, facilitate defence investments and create the legal framework required to support the scaling up of defence manufacturing across Europe.  The package comprises: (i) an amending Directive on intra-EU transfers of military equipment and defence procurement, (ii) a new Regulation on fast-track permitting and (iii) an amending Regulation on defence readiness and investments.

We discuss the key aspects of each instrument below.

1. Defence procurement and intra-EU transfers of military equipment  

The newly adopted Directive on transfers and defence procurement amends both the Intra-EU Transfers Directive (2009/43/EC) which regulates cross-border movement of military equipment, and the Defence and Security Procurement Directive (2009/81/EC) (the “D&SP Directive”) which establishes the EU procurement framework for defence and security contracts.  Key changes include:

• Increased Procurement Thresholds: the financial thresholds for contracts falling within the scope of the D&SP Directive have substantially increased. For works contracts, the threshold increases from €5.404 million to €10 million, while for supply and service contracts it rises from €432,000 to €2 million. As a result, a greater number of defence contracts will fall outside the D&SP Directive's procurement requirements and may instead be awarded under national procurement rules.
• New Mandatory General Transfer Licences: the framework for general transfer licences has been expanded by strengthening the existing licence for transfers between certified suppliers and recipients and introducing new licences for: (i) projects funded under a Union defence industrial programme, and (ii) transfers taken place in the framework of a structured intra-EU industrial partnership.
• Cross-border joint procurement: The current version of Article 10 of the D&SP Directive permits contracting authorities to procure defence goods and services through central purchasing bodies. The newly introduced Articles 10a and 10b establish a more detailed framework for collaborative procurement between contracting authorities in different Member States. Notably, now Member States cannot prevent the use of central purchasing bodies established in another Member State, facilitating greater EU-wide procurement cooperation.
• Innovative Partnerships: New rules have been introduced (Article 27a) for Innovation Partnerships enabling contracting authorities to partner with economic operators to develop innovative defence products, services or works. Importantly, the mechanism provides a single framework covering the full lifecycle from research and development through to procurement, helping to accelerate the development and deployment of new defence capabilities.
• Dynamic Purchasing Systems: Article 29a introduces new rules for Dynamic Purchasing Systems, procurement tools used by public sector buyers in the Union, that are operated solely electronically and open to use by any economic operator meeting the relevant selection criteria. The new rules divide the Dynamic Purchasing Systems into categories of products, works or services, and enable contracting authorities to procure commonly required defence goods and services more efficiently.  The changes introduced also shorten the minimum bidding window from 40 days to 37 days (Article 33). This further assists in speeding up contract awards for critical defence equipment.
• Temporary suspension of procurement reporting requirements: The Directive suspends Member States’ annual procurement reporting obligations until 31 December 2030, easing administrative requirements during the EU’s defence readiness period.

2. Acceleration of permit-granting processes for defence readiness projects

A new regulation introduces harmonised rules governing the permit-granting process for defence readiness projects.  Under Article 3, Member States are responsible for determining which projects qualify as a defence readiness project. Member States must establish or designate a Single Point of Contact to be the sole interface for project promoters of a defence readiness project throughout the permit-granting process. The Single Point of Contact will coordinate the relevant authorities, facilitate the submission of documentation and notify project promoters of permit decisions. Article 6 also requires Member States to provide administrative support for defence readiness projects in their territory, with a keen focus on Small and Medium-sized Enterprises (“SMEs”) and mid-caps.  Under Article 8, the process is capped at 42 working days (extendable to a maximum of 102 working days in complex cases) and introduces the principle of tacit approval whereby permits are deemed automatically granted if authorities fail to meet the deadline.

3. Defence Readiness

The Defence Readiness Regulation amends five existing regulations, streamlining the administration of the European Defence Fund (the “EDF”) and providing greater legal clarity on the application of EU environmental and chemicals rules to defence readiness activities.  For example, the Defence Readiness Regulation increases funding bonuses for EDF projects involving SMEs, particularly cross-border SMEs, while it also introduces a number of measures aimed at reducing administrative burdens and improving the operation of the EDF.

Effective Dates and Future Reforms

The legislative acts which comprise Omnibus V enter into force on the twentieth day following their publication in the Official Journal of the European Union. While the Regulations will apply directly, Member States will have 12 months to transpose the D&SP Directive Directive into national law.

The changes introduced by Omnibus V are part of a wider package of reform – for example, the Commission is separately reviewing the D&SP Directive, which review is due to conclude by the end of 2026. For European defence companies, it is important to navigate not only the changes introduced by Omnibus V but also to have a keen eye on the further wave of proposed reform to the D&SP Directive.