Photo from ReArm Europe Plan/Readiness 2030 Briefing Document
In recent years, discussions around financing the EU defence industry have gained increasing attention. As part of these efforts, the European Union has expanded its financial instruments to support defence capability development, including through the European Defence Fund (EDF). Building on this momentum, the ReArm Europe Plan has been introduced as a new funding opportunity to strengthen Europe’s defence industrial base.
Launched in March 2025, the ReArm Europe Plan is a major EU initiative aimed at enhancing Europe’s defence readiness and industrial capacity. The plan seeks to mobilise up to €800 billion by 2030 through increased public investment, joint procurement, and complementary financing mechanisms.
For companies operating in the defence, security, and dual-use sectors, ReArm Europe represents a significant source of future business opportunities.
What is ReArm Europe Plan?
ReArm Europe is an EU-level framework that enables increased investment in defence and security across Member States. A key element of plan is the Security Action for Europe (SAFE) instrument, which allows the EU to raise funds and provide long-term loans to Member States for defence procurement and capability development.
ReArm Europe brings together EU-level loans, national defence spending, and European Investment Bank financing to increase defence investment across Europe. While most funding is channeled through governments, companies can benefit through procurement opportunities and EIB financial support.
Who Can Access ReArm Funding?
1. EU Member States (Direct Access)
Only EU Member States can directly access ReArm funding particularly through SAFE loans. Governments apply for this funding by submitting national defence investment plans to the European Commission. These plans typically focus on:
- Defence capability development
- Joint procurement with other EU countries
- Strengthening European defence production
Companies cannot apply directly to ReArm or SAFE. Instead, companies benefit when governments use this funding to purchase equipment, services, or technologies.
2. Companies (Indirect and Complementary Access)
Although companies are not direct applicants, defence, security, and dual-use companies can benefit in two main ways:
a. Through national and joint defence procurement
When a Member State receives ReArm/SAFE funding, it uses that funding to issue procurement tenders. Companies can participate by:
- Bidding for national defence contracts
- Joining joint procurement projects involving multiple EU countries
- Acting as suppliers or subcontractors within larger defence programmes.
Most funded projects prioritise European-based production and supply chains, meaning companies established in the EU or closely linked to EU partners are best positioned.
b. Through European Investment Bank (EIB) financing
In parallel, the European Investment Bank (EIB) has expanded its support for defence and security-related companies. Unlike ReArm /SAFE, EIB financing can be accessed directly by companies, particularly:
- SMEs
- Mid-sized companies
- Innovative firms working on defence or dual-use technologies
EIB support may include loans, guarantees, or venture-style financing to support:
- Research and development
- Scaling production
- Technology deployment
- Working capital needs
ReArm Europe is not a traditional funding programme for companies, but it plays a key role in expanding defence investment across the EU. For companies, its value lies in the increased volume of publicly funded procurement and in complementary financing opportunities provided by the European Investment Bank.
Understanding this distinction helps companies identify where real opportunities exist and how ReArm-related investments may translate into future business.
Webinar Recording Available
Alongside this article, a Finnish-language webinar is available that discusses the broader defence innovation and funding landscape relevant to companies in the sector. The webinar programme covered:
- The DefTech Oulu cluster and sources of growth for defence-related business
- ReArm Europe and company financing, highlighting new opportunities for companies
- How companies can collaborate with the Finnish Defence Forces
- The project process within the Army, from early ideas to operational capabilities
While the webinar addresses ReArm Europe as part of a wider discussion, it provides valuable context and practical insights for companies interested in defence, security, and dual-use markets in Finland.
You can watch the webinar recording (in Finnish) here:
For further information or enquiries related to this topic, please contact Jussi Leponiemi, Key Account director of ICT sector (jussi.leponiemi@businessoulu.com), or Niina Heikkinen, Coordinator, ICT (niina.m.heikkinen@businessoulu.com).
Written by Rana Toro