In October, the Council of the European Union formally approved the Omnibus V defense package. The three acts were signed on Oct. 21, 2026, and published in the Official Journal of the European Union on Nov. 3, 2026. They will enter into force on Nov. 23, 2026.
The reform will raise the EU defense procurement thresholds from €432,000 to €2 million for supply and service contracts and from €5.404 million to €10 million for works contracts. It will also introduce new award procedures, facilitate cross-border procurement, accelerate permitting for defense-readiness projects, and simplify certain intra-EU transfers of defense-related products.
For contracting authorities, defense companies, suppliers, and investors active in the EU defense market, the package will change which contracts are subject to EU-wide procurement rules and how awards, contract modifications, cross-border cooperation, and defense-related projects may be structured.
Omnibus V at a Glance
- Supply and service contracts: threshold increases from €432,000 to €2 million.
- Works contracts: threshold increases from €404 million to €10 million.
- New procedures: open procedures, dynamic purchasing systems, and innovation partnerships will become available.
- Framework agreements: maximum duration will increase from seven to 10 years.
- Contract modifications: new de minimis rules will permit certain changes without a new procurement procedure.
- Permitting: defense-readiness projects will benefit from a 42-working-day standard deadline.
- Timing: in force Nov. 23, 2026; transposition within 12 months, application within 15 months.
What Is the EU Omnibus V Defense Package?
Omnibus V is the legislative pillar of the EU’s Readiness 2030 agenda and rests on the European Commission proposal of June 17, 2025 (COM(2025) 823). The European Parliament adopted the package on Sept. 16, 2026, and the Council followed on Oct. 9, 2026. The package comprises three acts: two Regulations and one Directive.
The Directive amends both the Defense and Security Procurement Directive (2009/81/EC) and the Intra-EU Transfers Directive (2009/43/EC), which governs the cross-border movement of defense goods. In Germany, the Defense and Security Procurement Directive is implemented in Sections 104 et seq. of the Act against Restraints of Competition (GWB) and in the Defense and Security Procurement Ordinance (VSVgV), so the changes will reach the German market through amendments to those rules. Member States must adopt and publish the transposing measures within 12 months of the Directive’s entry into force and apply them within 15 months, i.e., by approximately November 2027 and February 2028, respectively. The reforms respond to a projected scaling of European defense investment, which may reach at least €800 billion over the next four years, including spending financed through the €150 billion Security Action for Europe (SAFE) instrument.
Who Will the EU Defense Procurement Reform Affect?
The reforms are primarily relevant to market participants in EU defense procurement, including:
- contracting authorities that procure defense and security works, supplies, and services, including central purchasing bodies and European public entities such as the European Defence Agency;
- defense companies and suppliers bidding for or performing public contracts;
- small and medium-sized enterprises (SMEs) in the defense supply chain, which are targeted by enhanced funding incentives; and
- companies engaged in cross-border transfers of defense goods or in structured intra-EU industrial partnerships.
Because the higher thresholds will move a larger share of contracts outside the Directive, where national rules apply instead, contracting authorities, defense companies, and suppliers may wish to confirm which regime governs a given tender, rather than relying on prior practice.
New EU Defense Procurement Thresholds
The financial threshold above which contracts fall within the scope of the Defence and Security Procurement Directive will rise under Article 8 €EUR 432,000 to €2 million for supply and service contracts, and from €5.404 million to €10 million for works contracts. The baseline figures are the thresholds in force since Jan. 1, 2026, so the increase for supply and service contracts is more than fourfold. The lot-level value limits in Article 9(5) will rise in parallel, from €80,000 to €360,000 and from €1 million to €1.8 million.
New Award Procedures, Framework Agreements, and Contract Modifications
The Defence and Security Procurement Directive (2009/81/EC) currently do not allow the open procedure, the innovation partnership, nor dynamic purchasing systems. The amendments will introduce all three. The open procedure will become a standard procedure (Article 25(2)). Dynamic purchasing systems (Article 29a) will become available for market-standard goods, and innovation partnerships (Article 27a) will allow co-development of new technologies from research through to procurement. Under revised Article 33, the minimum time limit will be 37 days for the receipt of requests to participate and 35 days for the receipt of tenders in the new open procedure, while tenders in restricted procedures will remain subject to a 40-day limit.
The amendments will clarify and strengthen central and cross-border procurement rules. Revised Article 10 will allow Member States to permit (or require for certain procurements) the use of central purchasing bodies, including European public entities. Contracting authorities using them will be presumed to have complied with the Directive in respect of the procurement conducted through those bodies. New Article 10a will establish a framework for procurement involving contracting authorities from different Member States, and new Article 10b will govern occasional joint procurement more generally: Member States may not prevent contracting authorities from using central purchasing bodies in other Member States, and participating contracting authorities must agree on the allocation of responsibilities and the applicable national law and record those arrangements in the procurement documents.
The maximum duration of framework agreements will rise from seven to 10 years. New Article 49a will introduce, for the first time, dedicated rules on contract modifications during the term, including a de minimis rule: a modification may be made without a new procurement procedure where its value is both below the Article 8 thresholds and below 10% of the original contract value for supply and service contracts, or 15% for works contracts, provided that it does not alter the overall nature of the contract. Contracting authorities may also require that certain critical tasks be performed by the contractor itself (Article 42(7)).
Defense Transfers, Fast-Track Permitting, and Investment Rules
Beyond procurement, the package will introduce measures affecting defense supply chains and project development. The amending Directive will introduce a general transfer license for transfers between certified suppliers and certified recipients, which will cover at least the products under the existing license for certified recipients, and will require Member States to publish general transfer licenses for transfers necessary to implement projects funded under EU defense industrial programs, such as the European Defence Fund (EDF), and for transfers within structured intra-EU industrial partnerships. These licenses will allow qualifying transfers to proceed under a pre-approved framework rather than through individual permits.
A standalone Permit-Granting Regulation, published as Regulation (EU) 2026/2381, will establish a fast-track process for defense-readiness projects, with a 42-working-day deadline that may be extended to a maximum of 102 working days in complex cases. The Regulation will also provide for tacit approval, subject to a Member State derogation where a project poses a serious risk to human health or national security. A further Regulation will also introduce defense-related exemptions under the REACH Regulation (EC) No. 1907/2006, limit certain Member State claims to intellectual property in EDF projects, and increase incentives for SME participation in EDF projects.
Germany: Interplay with the Bundeswehr Planning and Procurement Acceleration Act
In Germany, the Bundeswehr Planning and Procurement Acceleration Act (BwPBBG), in force since Feb. 14, 2026, already provides several comparable instruments, including innovation partnerships and the use of central purchasing bodies in other Member States. The higher EU thresholds may flow through to German practice: because Section 106(2) GWB refers to Article 8 of the Directive “as amended from time to time,” the limit for direct awards under the deviating administrative rules for Bundeswehr procurement would rise from €432,000 to €2 million for defense- and security-specific supplies and services. Whether this takes effect with the Directive’s entry into force or only upon transposition remains to be confirmed.
Open Questions: Buy European and Scope of the Defense Exemption
Several issues remain unresolved. Separately from Omnibus V, the Commission’s broader review of the Defence and Security Procurement Directive is expected to conclude by the end of 2026; we are not aware of a published legislative proposal as of the date of this alert. It may address participation restrictions, including a potential “Buy European” requirement, and the scope of the defense exemption under Article 346 of the Treaty on the Functioning of the European Union (TFEU), which the Commission reportedly aims to apply more narrowly and uniformly. Related competition and Member State aid initiatives are proceeding on a separate, non-legislative track and are not part of the Omnibus V defense package.
For large-scale or particularly sensitive programs, Article 346 TFEU continues to allow Member States to take procurements outside the Directive where necessary to protect their essential security interests; the co-legislators expressly recognized this national prerogative in Omnibus V. EU courts, however, apply the exemption narrowly and on a case-by-case basis.
Key Takeaways for Contracting Authorities and Defense Companies
Omnibus V will raise the thresholds under the Defence and Security Procurement Directive, making the Directive applicable to a narrower range of contracts, while expanding the procedures available to contracting authorities and strengthening the framework for cross-border procurement. The practical impact will depend on national transposition and the Commission’s separate review of the Directive.
Contracting authorities, defense companies, and suppliers may wish to:
- review current and planned tenders against the incoming thresholds and assess which procurement rules will apply, bearing in mind that relevant EU-law principles may continue to apply below the thresholds;
- consider whether the new open procedure, dynamic purchasing systems, innovation partnerships, longer framework agreements, and contract-modification rules fit their procurement and supply strategies; and
- monitor national transposition (in Germany, alongside the BwPBBG and the federal government’s report due by Dec. 31, 2026) and the Commission’s separate review, including potential changes to participation restrictions and the Article 346 TFEU exemption.
Frequently Asked Questions
What are the New EU Defense Procurement Thresholds Under Omnibus V?
The threshold for supply and service contracts will increase from €432,000 to €2 million. For works contracts, it increases from €5.404 million to €10 million.
Which New Procurement Procedures Will Omnibus V Introduce?
The package will make the open procedure, dynamic purchasing systems, and innovation partnerships available under the Defence and Security Procurement Directive.
How Long May Defense Framework Agreements Run Under the New Rules?
The maximum duration will increase from seven to 10 years.
When Will the Omnibus V Changes Apply in Germany?
The amending Directive must be transposed within 12 months and applied within 15 months of its entry into force on Nov. 23, 2026, through amendments to the GWB and the VSVgV. Because Section 106(2) GWB refers dynamically to Article 8 of the Directive, the higher thresholds may take effect earlier.