The European Commission will invite EU countries to swiftly agree on their most pressing defense needs with a view to launching "large-scale pan-European flagship projects," according to a draft white paper seen by Reuters on Thursday.

The paper also says the commission will propose to deepen the European single market for defense, "notably through greater clarity on procurement and regulatory simplification and harmonization."

It says the European Union should consider introducing European preference into public procurement for strategic defense-linked sectors.