The EU’s quantum strategy – key technology for business, security and defense

I. A new era: the EU’s Quantum Europe Strategy

The European Commission’s Quantum Europe Strategy, published on 2 July 2025, aims to make Europe a global leader for quantum technologies by 2030. The strategy is more than just a re-search programme; it marks a political paradigm shift, treating quantum technologies as strategic infrastructure with major implications for business, security and defense.

The US and China have already invested heavily in these technologies. The EU now wants to develop its own sovereign quantum ecosystem combining scientific excellence with industrial scalability and the resilience crucial for maintaining security. The strategy introduces a compre-hensive regulatory framework which is to be legally underpinned and developed in the form of a proposed European Quantum Act in 2026.

II. Why quantum technologies are crucial for defense, security and business

Quantum technologies are giving rise to disruptive applications with a significant impact on security-relevant capabilities – both military and civilian. These include:

• High-precision navigation without GPS, for example for autonomous systems
• Tap-proof communication using quantum encryption
• Sensor technology and gravimetry, for example for the detection of underground infrastructure
• Quantum computing, for example for operational support involving complex situational assessments and logistical decision-making

Quantum applications are therefore altering the strategic landscape across defense, space, cybersecurity and crisis prevention and often have a dual-use character, i.e. they can be used for civilian purposes but have military implications as well

At the same time, quantum applications have enormous economic leverage: According to the European Commission, the global market for quantum solutions will be worth over EUR 155 billion by 2040 and create tens of thousands of skilled jobs in Europe. Companies that invest early and master the regulatory landscape will gain a competitive edge and play a strategic role in tomorrow’s critical industries.

III. Key security industry technology in both Germany and the EU

There is a clear political basis for regarding quantum technologies as a vital component of security policy:

• In its National Security and Defense Industry Strategy of 4 December 2024, the Federal Government classifies quantum technologies as one of the key security and defense industrial technologies whose national availability is in the interest of national security.
• In its Economic Security Strategy and White Paper for European Defence - Readiness 2030, the European Commission also classifies quantum as a key technology for security and defense.

This means that companies in areas such as IT security, communications, sensor technology, aerospace or AI may be categorised as security-relevant for regulatory purposes – in many cases without this being the strategic intent. Businesses should therefore ensure correct legal and strategic classification at an early stage, especially in the case of cooperations, investments or when entering international markets.

IV. The five interconnected areas of the Quantum Europe Strategy

The Quantum Europe Strategy identifies five key areas that are intended to cement Europe as a global leader by 2030:

• Research and innovation: Establishment of an EU-wide research and innovation initiative that combines foundational research with real-world industrial applications – also in the defense sector (e.g. situational picture processing, simulation).
• Quantum infrastructures: Development of coordinated infrastructure hubs (data centres, testbeds, satellite systems), including early piloting of relevant technologies.
• Strengthening the quantum ecosystem: Supporting European start-ups, scale-ups and supply chains, focusing on resilience and reducing dependency on non-European components.
• Space and dual-use potential (security and defense): Integration of quantum technological capabilities into Europe’s space and defense strategies, including concrete roadmaps for the respective deployment of quantum technologies.
• Quantum skills: Establishment of the European Quantum Skills Academy in 2026 to create a pool of professionals with relevant applied skills.

V. The proposed Quantum Act: creating a regulatory framework 

In 2026, the European Commission plans to present a European Quantum Act, which will establish a regulatory basis and legal protection for the strategic goals of the Quantum Europe Strategy. The Quantum Act is currently under preparation; a draft is not yet available.

According to the strategy paper, the Quantum Act will likely contain the following elements:

• Framework conditions for targeted investments in key technologies and industrial infrastructure: The Quantum Europe Strategy already provides for the creation of a quantum design facility and six pilot lines for quantum chips, each with up to EUR 50 million in public funding. It is unclear whether these measures will be governed directly by the Quantum Act or pursued through existing mechanisms such as the Chips Joint Undertaking or Horizon Europe.
• Support for strategic dual-use applications in defense, space and cybersecurity: The Commission explicitly recognises quantum applications as relevant technology for security and defense purposes. The Quantum Act aims to support measures that will bolster and harmonise this sector.
• Strengthened coordination, governance and risk management: High-level coordination is planned across Member States, industry, start-ups, and research institutions. This effort will be supported by an expert advisory board staffed by leading European quantum scientists (including Nobel Prize laureates).
• Integration with existing European funding and security programmes, including key initiatives and instruments such as the European Defence Fund, Digital Europe, Horizon Europe, the ESA programme and the NIS2 Directive.

It is not yet clearwhether the Quantum Act will also regulate specific certification or standardisation requirements. The Quantum Europe Strategy provides for the establishment of test environments for quantum communication systems in which pre-certification processes are to be tested. The EU’s standardisation organisations (e.g. CEN/CENELEC, ETSI) and EU agency ENISA are also already working on the relevant technical standards. However, it remains to be seen whether and how the Quantum Act will provide a mandatory framework for these existing processes.

VI. Conclusion

Much like the EU Chips Act, the Quantum Act is not intended as mere symbolic policy but will serve as a central building block for regulating and scaling security-relevant key technologies. In particular, Companies developing potentially security-critical quantum applications should position themselves strategically at an early stage, in alignment with emerging regulatory frameworks. Impact on business – recommend-ed actions

There are clear implications for tech companies – even those not directly connected to the defense sector:

• Opportunities: Access to strategic funding structures, privileged access to security-relevant projects, technological cooperation opportunities.
• Duties: Compliance with foreign investment controls, export controls (including those that apply to civilian applications with dual-use potential), IT security requirements, ESG-compliant defense financing.
• Recommendation: Review at an early stage whether your own technologies or collaborations could be categorised as security-relevant – especially in the case of R&D projects, projects funded by third parties, and transnational supply relationships and equity investments.

VII. Outlook

The Quantum Europe Strategy is more than just signal of industrial policy; it is a regulatory blueprint for a resilient, sovereign Europe in the age of competition for quantum technologies. The Quantum Act will create a binding legal framework that will bring together market competitiveness, security capabilities and technological innovation.

Companies, investors, and research institutions that strategically position themselves now in terms of technology foresight, funding eligibility and regulatory certainty will be the first to lead the quantum revolution.