The European Commission has approved the implementation framework for the European Defense Industry Programme (EDIP), with a total budget of €1.5 billion, aimed at strengthening and modernizing Europe’s defense base, as well as increasing its production capacity and technological resilience. As noted, the program aims to address critical challenges facing the European defense and security sector, with particular emphasis on boosting production, cooperation with Ukraine, joint equipment procurement and promoting common European defense initiatives.
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From the total fund of €1.5 billion, over €700 million is expected to be directed toward increasing production of critical defense systems and materials, such as anti-drone systems, missile systems and ammunition. This includes €260 million through the Ukraine Support Instrument (USI) to strengthen and modernize the country’s defense industrial base. Meanwhile, €325 million will be directed to European Defense Projects of Common Interest (EDPCI), aimed at developing large-scale collaborative industrial programs, open to Norway and Ukraine as well.
To enhance joint procurement of defense equipment, the Commission allocates €240 million for projects covering areas such as drone interception systems, air defense, missile defense, as well as ground and naval combat systems.
Special emphasis is placed on innovation, as €100 million will be allocated through the FAST Fund to support start-ups, small and medium enterprises, and small mid-cap companies in the defense sector. Additionally, the new BraveTech EU initiative will be funded with €35.3 million, aimed at supporting innovative defense solutions for Ukraine and the EU. The first round of calls for proposals will be posted on the EU funding and tenders portal tomorrow, Tuesday.
European Commission: “Within months, we translated the EDIP regulation into immediate opportunities,” says Defense Commissioner
EDIP, which was approved on December 8, 2025, represents one of the EU’s key initiatives to enhance its defense readiness and European defense industry in the new security environment, providing a total of €1.5 billion in grants for the 2026-2027 period.
Defense Commissioner Andrius Kubilius stated: “Within months, we translated the EDIP regulation into immediate opportunities. Now, member states, Norway, Ukraine and their industries can take advantage of funding opportunities to strengthen defense cooperation and increase production. The creation and funding, within the framework of EDIP, of European defense projects of common interest (EDPCI) is also a decisive step in strengthening Europe’s defense readiness.”
