A new lens for competitiveness: why dual use matters
The European Union’s long-term competitiveness will increasingly depend on its ability to align economic, industrial and security policy. At the heart of this alignment is a dual use approach. This is not a traditional policy framework, but an emerging strategic logic that integrates civil and military investments across infrastructure, technology and supply chains. Once confined largely to aerospace and defence primes, dual use thinking is now central to how the EU is reimagining its industrial base.
A wide array of actors, from local governments modernising transport corridors to SMEs developing AI, cybersecurity, energy efficiency and clean tech, are now integral to this shift. The EU’s strategic direction is clear: it seeks an industrial ecosystem that enhances resilience, readiness, and innovation capacity, where competitiveness is no longer measured solely by GDP or export growth, but also by the ability to respond to shocks, disruptions, and security threats, with research and innovation playing an increasingly central role. This transformation is driven by both external pressures and internal ambition. A rapidly shifting geopolitical environment has laid bare Europe’s dependencies and vulnerabilities, while also challenging the old distinction between economic growth and strategic security.
In this context, dual use policy becomes a unifying thread to one that brings together innovation, sovereignty, investment, and resilience under a common agenda. Before you proceed, this story has been crafted in collaboration with our digital expert colleagues Cathy Kremer, Jan van Braeken, and Marc Luetz. We hope that together we manage to give you a good overview of the topic and the latest developments around it.
From the Competitiveness Compass to the Clean Industrial Deal
This logic is embedded in key European Commission initiatives such as the Competitiveness Compass published early in 2025, which identifies resilience, limiting dependency and simplification as foundations to future competitiveness, positioning dual use infrastructure and supply chains as core enablers. Europe’s productivity challenge is seen through the lens of innovation led, security aware growth. The Compass calls for measures to reduce overdependence on external suppliers, increase strategic autonomy, and align regulatory frameworks with new geopolitical realities.
The Clean Industrial Deal reinforces this by emphasising that decarbonisation, competitiveness and resilience must be pursued simultaneously. While the deal focuses on energy intensive industries and clean tech, many of its flagship priorities, from critical raw materials to grid resilience and circularity, also serve dual use objectives. Notably, the deal commits to cutting red tape, simplifying permitting, and boosting domestic production capacities, moves that dovetail with readiness imperatives.
As the Clean Industrial Deal states, competitiveness is now imperative. The industrial ecosystem needed for climate neutrality by 2050 must also be capable of withstanding systemic shocks, cyber threats, and supply chain disruptions. For this reason, circularity, electrification and secure digital infrastructure are framed not only as green goals but also as components of a resilient Europe. A competitive Union is one that can easily absorb shocks and accelerate when necessary.
A legislative shift: the Defence Readiness Omnibus
On 17 June, the European Commission published the Defence Readiness Omnibus, a far-reaching legislative package aimed at aligning Europe’s regulatory landscape with the realities of deterrence, preparedness and strategic autonomy. It includes two proposed regulations and a directive. The first amends five key EU regulations, including REACH and the European Defence Fund, to introduce defence specific exemptions and streamline compliance. The second introduces a harmonised fast track permitting procedure across Member States, with a 60-day deadline for defence related infrastructure. The third simplifies intra-EU transfers and procurement for defence and dual use goods.
These measures are not mere procedural tweaks. They represent a systemic shift in how the EU conceives economic activity linked to security. For example, under the proposed permitting regulation, infrastructure projects contributing to military mobility, grid resilience or cross border interoperability can benefit from single contact points and prioritised administrative handling. Projects that meet dual use criteria could gain access to faster authorisation pathways, potentially unlocking public and private investment earlier and at greater scale.
Importantly, this legislative momentum builds on lessons from past coordination failures. Europe’s earlier struggles to jointly procure vaccines, semiconductor inputs or military equipment highlighted the costs of fragmentation. By embedding dual use thinking across its regulatory and funding architecture, the EU is now pursuing a more integrated and anticipatory industrial strategy that benefits industry, innovation, businesses and its citizens.
NATO alignment and financial firepower
The NATO Summit in the Hague (June 2025) reinforced this agenda. Allies endorsed a roadmap to increase total defence related spending to 5 percent of GDP by 2035, with 1.5 percent earmarked for dual use and infrastructure readiness. While not legally binding, the political momentum is substantial.
This direction was further bolstered by the launch of NATO’s Rapid Adoption Action Plan, which aims to accelerate procurement and deployment of interoperable technologies across Allied forces. The Action Plan sets specific timelines for technology fielding, outlines a fast-track pathway for certified dual use innovations, and promotes collaborative innovation hubs to ensure smoother scaling of emerging defence capabilities. It also reinforces interoperability requirements to ensure that civilian systems supporting logistics, energy, and communications can be rapidly repurposed in crisis scenarios.
The updated NATO Defence Production Action Plan complements this by identifying key industrial bottlenecks in defence supply chains and proposing structural reforms. It introduces joint forecasting tools, pooled stockpiles, and pan-European strategic reserves for critical components such as munitions, semiconductors and advanced materials. The plan also calls for the harmonisation of procurement criteria and defence certification schemes to align NATO and EU defence industrial bases. Together, these initiatives create significant momentum for aligning EU funding instruments with NATO’s operational and capability priorities, making dual use alignment both a policy and capability imperative.
In parallel, the Commission has launched the SAFE (Simplifying Access to Funding for European Defence) instrument, now endorsed by Council and Parliament. SAFE will provide blended finance, loan guarantees and co financing for dual use projects, national procurement and joint capabilities. Complementary frameworks such as ReArm Europe aim to mobilise up to €800 billion by 2030, combining EU programmes, national budgets and private capital.
Existing programmes are being recalibrated. The Connecting Europe Facility will shift to prioritise dual use transport corridors. Horizon Europe is expanding civil security research calls. InvestEU is de risking supply chain and digital infrastructure investments that enhance EU readiness. These developments reflect an understanding that competitive advantage will increasingly stem from strategic coherence, not only from market efficiency.
How does this matter for businesses?
For businesses, dual use is no longer a fringe concern. Companies across sectors, transport, digital, energy, logistics, chemicals, automotive, and advanced materials, are being asked to map their contributions to resilience and preparedness. Those that can demonstrate strategic relevance may gain priority access to funding, procurement, and accelerated permitting.
The Defence Readiness Omnibus and related policy tools suggest that readiness metrics could become part of eligibility criteria for major grants or supply chain certification. Firms investing in crisis resilient manufacturing, redundant data systems, or interoperable infrastructure may gain a competitive edge. Conversely, those unable to show alignment with resilience objectives could face increased compliance scrutiny or lose out in future funding rounds.
Support to navigate this environment can be welcome, whether you represent a multinational or an SME. The emerging EU ecosystem for dual use innovation includes co-funded accelerators, shared R&D platforms, and simplified procedures for cross border collaboration. But access to these tools will depend on firms engaging early and credibly with the dual use agenda.
The workforce dimension and skills imperative
The strategic shift also has labour market implications. The Union of Skills platform and Pact for Skills in Defence and Aerospace are launching dedicated dual use academies in 2026. These will focus on disciplines such as cybersecurity, additive manufacturing, digital twin engineering and smart energy systems. Co financing arrangements will require companies receiving EU support to participate in training provision or workforce development.
Moreover, the European Defence Fund and Digital Europe Programme will co-finance upskilling programmes that support both civil and military demand. Universities, vocational institutes and regional clusters will play a critical role. Companies embedded in this skills pipeline will be better positioned for partnership opportunities and long-term strategic contracts.
What comes next?
The coming months will determine whether the EU’s dual use agenda translates from paper to practice. Legislative negotiations on the Defence Readiness Omnibus and the operational roll out of SAFE, ReArm Europe and the Clean Industrial Deal will be decisive. Businesses that engage early through either consultations, pilots, or public-private platforms, will help define the rules of this new competitiveness game and at Publyon we’re at the front row
For those prepared to lead, dual use is a strategic opportunity and contact us to know more about it.
Do you want to know more?
Do you need help getting a better understanding of what the EU dual use policy will mean for your organisation? Fill out the form below and our team of experts will get in touch with you.
