EU approves defence programme to develop European and Ukrainian industries

On 30 March, the European Commission announced the approval of a €1.5 billion work programme under the European Defence Industry Programme (EDIP) – an instrument that, among other things, envisages the integration of Ukraine's defence industry into the EU's defence industry.

Source: European Commission, as reported by European Pravda

Details: EDIP addresses urgent European defence and security challenges by increasing production capacity, strengthening cooperation with Ukraine, enhancing joint European procurement, and developing European defence projects of common interest – marking a significant step in the EU's efforts to bolster Europe's security.

"Now, Member States, Norway, and as a first for an EU defence industrial programme Ukraine and their industries can seize funding opportunities to strengthen defence cooperation and ramp up production," said Andrius Kubilius, European Commissioner for Defence and Space.

More than €700 million will be allocated to support increased production of key defence components and products, including counter-drone systems, missiles and ammunition. This includes €260 million under the Ukraine Support Instrument (USI), which will help recover and modernise Ukraine's defence technological and industrial base (DTIB) by investing in joint projects that expand production capacity both in Ukraine and in Europe.

European Defence Projects of Common Interest (EDPCI) will receive €325 million to launch and implement ambitious joint industrial projects. These projects are intended to benefit a broader part of the EU and are also open to Norway and Ukraine.

To reduce fragmentation and improve efficiency, EDIP will allocate €240 million for joint procurement of defence equipment – including counter-drone capabilities and air and missile defence, as well as land and naval combat systems – by EU Member States and Norway. Consortia of buyers can apply for funding, with grants of up to €20 million per project.

Defence start-ups, including small and medium-sized enterprises (SMEs) and mid-cap companies, will receive €100 million in equity support through the Fund to Accelerate the Transformation of Defence Supply Chains (FAST).

Under the BraveTech EU initiative, a new defence innovation programme will receive an additional €35.3 million from EDIP's Ukraine Support Instrument (USI). This funding will support both Ukrainian and European industries, including start-ups and SMEs, fostering innovation to address urgent challenges faced by the Armed Forces of Ukraine and enhancing the competitiveness of the European defence industry.

The first round of EDIP calls will be available on the EU Funding and Tenders Portal from 31 March 2026.

The European Defence Industry Programme (EDIP) was adopted on 8 December 2025. It is one of several EU initiatives aimed at strengthening defence capabilities and developing the European defence industry in light of the evolving security landscape. The programme provides €1.5 billion in grants for the period 2026–2027.

Background: On 16 October, the European Commission presented the EU defence roadmap, in which Ukraine was identified as a key component of the EU's defence readiness.

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