News 2025

The European Commission, together with the High Representative for Foreign Affairs and Security Policy Kaja Kallas, presented two initiatives to finance a massive expansion of defence spending by giving EU countries more financial flexibility: Readiness 2030 - A ReArm Europe Plan and a White Paper for European Defence.

A cumulative amount of 800 billion EUR could be unlocked for additional defence investments, by activating the national escape clause under the Stability and Growth Pact for 2025-2028 (650 billion EUR), and by gathering another 150 billion EUR on the capital markets – through a new dedicated instrument for Security Action for Europe (SAFE) – backed by the EU budget. The initiatives to support the European defence industry mainly focus on closing capability gaps, and on the rearmament of Member States by “spending better, together and European”.

However, the important role of the construction sector will come into play to achieve the “military mobility” goal that has been identified as a critical capability area, as well as the defence industrial ramp-up to establish a strong and innovative European Defence Industry. To effectively deploy military troops and assets across the Union, the EU and its Member States will need to address infrastructure for military mobility as well as additional facilities for the expansion of industrial capacities.

Long-term perspectives and predictability are essential for ensuring planning security for investments. The 65% threshold for “domestic content”, along with swift national-level implementation, could unlock significant investments in building a robust defence industrial base with the necessary infrastructure. To accomplish this, decision-makers at the European and national levels can always count on the European Construction Industry as a strong and reliable ally.

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