Defense Industry: Commission Adopts

The European Commission approved a work program today worth 1.5 billion euros under the European Defence Industry Program (EDIP) to strengthen and modernize the European defense industry, boost production capacities, and ensure technological progress and resilience.

The EDIP addresses urgent challenges in European defense and security by enhancing industrial production capacities, strengthening cooperation with Ukraine, enhancing joint European public markets, and developing European projects of common interest in defense, which is a significant step in the EU’s efforts to improve Europe’s security.

Investment priorities and fund allocation: – Over 700 million euros will support the increase in production of essential defense components and products, including counter-drone systems, missiles, and ammunition. This includes 260 million euros under the EDIP’s Ukraine Support Instrument (USI) to contribute to the reconstruction and modernization of Ukraine’s defense industrial and technological base by investing in collaborative projects that increase production capacities in Ukraine and Europe. – European Projects of Common Interest in Defense (EDPCI) will receive 325 million euros to launch and implement ambitious collaborative industrial projects. These projects aim to benefit a larger part of the EU and are also open to Norway and Ukraine. – To reduce fragmentation and increase efficiency, the EDIP will finance 240 million euros for joint acquisition of defense equipment, including counter-drones, air and missile defense, and ground and naval combat systems, by EU member states and Norway. Procurement consortiums can apply for funding, with grants of up to 20 million euros per project. – Young companies in the defense sector, including small and medium-sized enterprises (SMEs) and medium-cap companies, will receive 100 million euros in equity support through the Defense Supply Chain Transformation Acceleration Fund (FAST). As part of the BraveTech EU initiative, a new defense innovation program will receive an additional 35.3 million euros from the EDIP USI to support Ukrainian and European industries, especially startups and SMEs, stimulate innovation to address urgent challenges faced by the Ukrainian armed forces, and improve the competitiveness of the European defense industry.

Next steps: The first round of calls for proposals from the EDIP will be visible on the EU Funding and Tender Opportunities Portal from March 31, 2026.

Context: The European Defence Industry Program (EDIP) was adopted on December 8, 2025. It is one of the many initiatives taken by the EU to enhance its defense readiness and strengthen the European defense industry in light of the evolving security landscape. The program provides 1.5 billion euros in grants for the period 2026-2027.

For more information: – EDIP Work Program for 2026 – EDIP Regulation – European Funding & Tender Opportunities Portal