Proposed New Defence and Security Procurement Act

EU and EEA Member States have wide discretion in determining which rules apply to procurement in the defence and security sector. National rules should however be adapted to current developments and to the overarching objective of strengthening national defence and security in Europe. The proposal introduces significant changes to the regulatory framework. The main proposals:

• Regulates public contracts both above and below the EU-thresholds,
   
• Places rules of a more technical character in an administrative regulation,
   
• Does not regulate public contracts below 300 000 Norwegian kroner,
   
• Implement the Defence and Security Procurement Directive in a loyal and transparent matter,
   
• Utilise the flexibility in the directive,
   
• Includes updates from relevant case-law,
   
• Places rules regarding sustainable defence- and security procurement, security of information and security of supply, as well as innovation together in separate chapters. 
   

The legislative proposals are presented in a comprehensive report that (i) examines and identifies the reasons why Norway needs a new regulatory framework in the defence and security sector, and (ii) sets out which rules and considerations should apply to defence and security procurement both above and below the EEA thresholds. The report is thorough and intended as preparatory work for a new Defence and Security Procurement Act thereby providing an indication of the future legal framework. 

The proposal is submitted in the context of an increased focus on defence and security within Europe. Reference is especially made to the White Paper on Defence submitted by the EU-Commission of 21 March 2025, and the corresponding National Security Strategy for Norway, published on 8 May 2025, by the Ministry of Defence. 
 
According to the report, the geopolitical climate today demands increased cooperation between nations on joint defence and security procurements. Because defence procurement is inherently cross-border, the regulatory frameworks play a crucial role in achieving Europe’s objectives for security and preparedness, and are of particular importance to Scandinavian countries given their geolocation.

Schjødt was also involved in the preparation of the proposal. At the request of the Ministry of Defence, Schjødt prepared a comprehensive report on the rules for defence and security procurement in Sweden, Denmark and Finland. In summary, the report addressed how the regulatory framework for defence and security procurement is implemented and enforced within the respective national legal jurisdictions.

Moving forward, the Ministry of Defence will evaluate the proposal and make necessary amendments towards a final framework for Defence and Security Procurement in Norway. Schjødt believes the final framework will be heavily influenced by the expected developments in the EU, particularly as the European Council and the Parliament consider the European Commission’s draft revisions of parts of the EU Defence and Security Procurement Directive of 17 June, 2025.

Schjødt’s cross-border Defence, Security, and Aerospace team stays on top of these legal developments, as our participation in the report demonstrates. As a fully integrated Scandinavian law firm, Schjødt is uniquely positioned to assist clients in navigating the evolving legal landscape and making both strategic and legal decisions.