The EU Defence Industrial Plan is providing €325 million for projects of common interest

Brussels – The European Commission today (30 March) approved the work programme for EDIP, the €1.5 billion EU defence industrial plan established last autumn following lengthy negotiations between member states. In addition to €700 million to support increased production of anti-drone systems, missiles, and ammunition, part of the funding is earmarked for nurturing the seeds of a common defence: this comprises the €325 million allocated to European Defence Projects of Common Interest (EDPCI), which are also open to Norway and Ukraine.

 Compared with the €343 billion spent in 2024 by member states on defence, or the €150 billion under the SAFE facility for defence loans, the scope of EDIP is truly limited. But in Brussels, they are banking on the “pioneering” effect of this regulation. “Our aim is to encourage cooperation,” said an EU source, adding that “no one is capable, on their own, of developing a space shield. It is essential to do this together.” 

In addition to bolstering industrial production capacity, the plan strengthens cooperation with Ukraine, enhances joint European public procurement and develops European defence projects of common interest. The €700 million to support increased production of key defence components and products includes €260 million under the Ukraine Support Instrument (USI), to invest in collaborative projects that help rebuild and modernise Ukraine’s defence technology and industrial base. 

European Defence Projects of Common Interest (EDPCI) will receive €325 million, whilst €240 million will be allocated to joint procurement of defence equipment, including anti-drone systems, air and missile defence systems, and land and naval combat systems. No numerical targets have been set (as was done, for example, with ASAP, a €500 million initiative aimed at achieving an annual production of 2 million rounds): “The industry is free to propose whatever it wants; it will have to demonstrate its creativity,” insisted an EU source. 

The final budget allocation is dedicated to start-ups in the sector, including SMEs and small mid-cap companies, which will receive €100 million in equity support through the Fund for Accelerating the Transformation of Defence Supply Chains (FAST). A specific innovation programme, BraveTech EU, will receive a further €35.3 million. 

“In just a few months, we have turned the EDIP regulation into concrete opportunities,” said Andrius Kubilius, the EU Commissioner for Defence and Space, urging Member States, Norway, Ukraine, and their respective industries to “seize the funding opportunities to strengthen defence cooperation and boost production.”