The lawmakers adopted a measure -- by 545 votes in favour, compared to 66 against and 44 abstentions -- to lift formalities that hold up intra-EU transfers of defence materials and cost over 400 million euros a year.

"Today's approval brings us a decisive step forward towards setting up a true European defence equipment market," said EU Industry Commissioner Guenter Verheugen.

"Member states will soon cease to consider other member states as third countries when authorising the circulation of defence-related products within the EU," he added.

Currently, national systems to control transfers of defence equipment do not distinguish between exports to countries outside the EU and transfers between other member nations.

Verheugen has said that the complex mix of national legislation and controls mean that countries are forced to go through the same procedure sending a truck tyre to an EU partner as when they sell a weapon to a non-member nation.

The patchwork of disproportionate national licensing systems hampers the security of supply between EU countries, costs businesses money and can deprive small and medium-sized businesses of market share in other countries.

The new measures will simplify licensing procedures, facilitate cross-border exchanges inside the EU and are expected to reduce costs, the commission said.

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