EC adopts 1.5B euro work programme to boost European and Ukrainian defence industry
The European Commission (EC) said in a March 30 statement that it has approved a €1.5 billion euro work programme under the European Defence Industry Programme (EDIP) to enhance and modernise Europe’s defence industry, boost production capacity and secure technological advancement and resilience.
“EDIP tackles pressing challenges in European defence and security by boosting industrial production capacities, reinforcing cooperation with Ukraine, strengthening joint European procurement and developing European defence projects of common interest, marking a significant step in the EU’s efforts to improve Europe’s security,” the EC said.
More than 700 million euro will support the production increase of key defence components and products, including counter-drones systems, missiles and ammunition.
This includes 260 million euro under the Ukraine Support Instrument (USI) of EDIP, to help rebuild and modernise Ukraine’s Defence Technological and Industrial Base (DTIB) by investing in collaborative projects that increase production capacities in both Ukraine and Europe.
The European Defence Projects of Common Interest (EDPCI) will receive 325 million euro to launch and implement ambitious collaborative industrial projects. These projects aim to benefit a broader part of the EU and are also open to Norway and Ukraine.
To reduce fragmentation and boost efficiency, EDIP will fund 240 million euro for the joint procurement of defence equipment, including counter-drone, air and missile defence and ground and naval combat systems, by EU member states and Norway.
Consortia of contracting authorities can apply for funding, with grants available for up to 20 million euro per project.
Defence start-ups, including Small and Medium-sized enterprises (SMEs) and small mid-caps will get 100 million euro in equity support through the Fund Accelerating Defence Supply Chains Transformation (FAST).
Under the BraveTech EU initiative, a new defence innovation programme will receive additional 35.3 million euro from EDIP USI, supporting both Ukrainian and EU industries, particularly start-ups and SMEs, boosting innovation to tackle urgent challenges faced by the Ukrainian armed forces and improve the competitiveness of the European defence industry, the EC said.
