Structural Permitting Bottlenecks Impeding Industrial Investment and Defence Readiness in the European Union
The speed at which the European Union authorises new industrial facilities has become a decisive variable for the continent’s security. In recent years, companies, governments and investors have begun to assess the credibility of European strategies not only on the basis of allocated resources or political commitments, but above all on how quickly projects can move from decision to operational reality. The issue affects the entire industrial spectrum, yet it carries particular weight in the defence sector, where the demands revealed by the war in Ukraine have brought back into focus production capacities that had long been treated as peripheral. Ammunition, explosives, propellants, launch powders and testing infrastructures now form the material foundations of European deterrence, and these are precisely the activities most constrained by lengthy, fragmented and uncertain permitting cycles. As a result, even when dedicated funding and clear political directives exist, the time required to secure environmental permits, industrial authorisations and safety licences continues to determine the actual pace at which Europe can expand its capacity. Understanding how these bottlenecks operate, where they originate and which solutions are being proposed has become essential for evaluating the credibility of the current rearmament phase and its implications for companies, supply chains, investors and research institutions.
The document that follows is structured to provide a detailed and systematic analysis of this problem. It begins by examining why permitting has become a structural constraint across the European industrial system and why it is now a central determinant of defence readiness. It then reconstructs in depth the legal and administrative layers that generate delays, from environmental assessments to chemical regulations and intra-EU transfer controls. A subsequent section analyses the industrial consequences of these timelines, focusing on energetics, ammunition production and time-to-capacity for critical inputs. The report then assesses in detail the 2025 Defence Readiness Omnibus and its proposed fast-track permitting framework, before exploring the implications for companies, investors, research institutions and public authorities. The final section evaluates whether the reforms are sufficient to resolve the identified bottlenecks or whether structural vulnerabilities will persist. The aim is to offer readers a clear and comprehensive map of the permitting landscape that shapes Europe’s ability to rearm, invest and maintain credible deterrence.