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ARTICLE · 05 MARCH 2026

EU Defence Readiness Omnibus: Security, Industry, And ESG Intersections

A&O Shearman
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This shift integrates defense into the EU's broader resilience agenda while embedding ESG principles into procurement and financing.

European UnionGovernment, Public Sector
Udo Herbert Olgemöller
Udo Herbert Olgemöller
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European defense policy is undergoing a profound transformation. 2025's Defence Readiness Omnibus marks a regulatory reset that prioritizes preparedness, industrial scalability, and strategic autonomy.

This shift integrates defense into the EU's broader resilience agenda while embedding ESG principles into procurement and financing. For businesses, the implications are significant. Navigating the new regulatory and security environment will involve managing complex compliance frameworks, adopting multi-strategy investment models, and anticipating long-term sector risks, including by leveraging dual-use technologies for strategic flexibility.

The fractured transition and the defense imperative

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