Written by Sebastian Clapp.

Strengthening joint capability development has become a central priority of EU defence policy in response to persistent capability gaps, fragmentation in procurement, and the deteriorating European security environment. Although Member States retain primary responsibility for defence planning and acquisitions, the European Union has progressively established instruments intended to encourage cooperative capability development and strengthen the European defence technological and industrial base. Defence expenditure in the EU has increased substantially in recent years, reaching an estimated €381 billion in 2025, yet it remains significantly lower than that of the United States. Fragmentation also persists in equipment and capability development. To address these challenges, the EU has developed a set of policy and financial instruments covering the entire capability cycle. Strategic priorities are defined through frameworks such as the Capability Development Plan and Coordinated Annual Review on Defence, while initiatives including Permanent Structured Cooperation, and the European Defence Fund promote collaborative research and capability development projects. Recent policy initiatives, notably the European defence industrial strategy and the Readiness 2030 agenda, seek to translate increased defence spending into coordinated investment, industrial capacity expansion and faster capability development.

The European Parliament emphasises that joint capability development is essential to reduce duplication and strengthen European defence readiness. It argues that higher defence spending will remain inefficient if it continues to be organised primarily at national level. Parliament therefore calls for stronger EU-level coordination, expanded joint procurement and increased use of instruments such as the European defence industry programme to achieve economies of scale, improve interoperability and reinforce the EU defence industry.

Read the complete briefing on ‘EU joint defence capability development‘ in the Think Tank pages of the European Parliament.