EC to invest 1.07B euro in 57 defence projects supporting European Readiness Flagships

Following the evaluation of the 2025 calls for the European Defence Fund (EDF), the European Commission (EC) will invest 1.07 billion euro in 57 new EDF projects, the EC said in a statement on April 15.

These investments will support the  goals set out in the Defence Readiness Roadmap 2030 and provide essential funding for the EU’s four major defence flagships: the European Drone Defence Initiative, the Eastern Flank Watch, the European Air Shield and the European Space Shield.

The 57 projects selected under the 2025 EDF cover a wide range of critical sectors, including artificial intelligence (AI), cyber defence, drones and counter-drone systems. These investments are designed to ensure the EU remains a leader in advanced defence technology.

More than 15 projects will support the four European Readiness Flagships, the EC said.

For example, project AETHER will develop propulsion and thermal management systems to support the Drone Defence Initiative. All flagship initiatives will also benefit from cross-cutting projects focused on sensors, digital transformation or cyber technologies, the statement said.

The EU is also deepening its cooperation with the Ukrainian defence industry, supported by the EU Defence Innovation Office in Kyiv.

This partnership aims to better integrate Ukraine into the European industrial base, the EC said.

The statement said that one key initiative, Project STRATUS, will develop an AI-powered cyber defence system for drone swarms. It includes a Ukrainian subcontractor, ensuring the project benefits from direct battlefield experience.

To attract new talent, several projects focused on mass-producing affordable drone munitions will launch ‘sub-calls’ for start-ups and small and medium-sized enterprises (SMEs).

These smaller companies can receive up to 60 000 euro each to integrate new innovations, helping those without previous defence experience enter the market. Ukrainian entities can also apply.

The selected projects involve 634 entities from 26 EU member states and Norway, reflecting a strong commitment to European defence cooperation, the EC said.

It said that SMEs are central to this round, making up over 38 per cent of participants and receiving more than 21 per cent of the total funding.

In the calls, 675 million euro will support 32 capability development initiatives and 332 million euro will go to 25 research projects.

Following the selection of the successful proposals, the Commission will now enter into the grant agreement preparation with the consortia, with the goal of signing agreements before the end of the year, the statement said.