European Commission adopts EUR 1.5 bln work program to develop European and Ukrainian defense industries

The European Commission has approved a work program totaling EUR 1.5 bln under the European Defence Industry Programme (EDIP) to improve and modernize the European and Ukrainian defense industries, increase production capacity, and ensure technological progress and resilience.

This was reported by the European Commission’s press service on Monday.

Specifically, over EUR 700 mln will be directed toward increasing the production of key defense components and products, including anti-drone systems, missiles, and ammunition. "This includes EUR 260 mln under the EDIP’s Ukraine Support Instrument (USI) to assist in rebuilding and modernizing Ukraine’s defense technological and industrial base (DTIB) by investing in joint projects aimed at increasing production capacities both in Ukraine and Europe," the report details.

Additionally, European Defense Projects of Common Interest (EDPCI) will receive EUR 325 mln to launch and implement "ambitious joint industrial projects." These projects are intended to benefit a majority of EU countries and are open to Norway and Ukraine.

"To reduce fragmentation and increase efficiency, EDIP will provide EUR 240 mln for joint procurement of defense equipment by member states and Norway, including anti-drone capabilities, air and missile defense systems, as well as land and sea combat systems. Procurement consortia can apply for funding, with grants available up to EUR 20 mln per project," the press release states.

Furthermore, defense startups, including small and medium-sized enterprises (SMEs) and small mid-cap companies, will receive EUR 100 mln in equity support through the Defense Supply Chain Transformation Acceleration Fund (FAST).

"As part of the BraveTech EU initiative, a new defense innovation program will receive an additional EUR 35.3 mln from EDIP USI, supporting both Ukrainian and European industry, particularly startups and SMEs, by stimulating innovation to address urgent challenges faced by the Armed Forces of Ukraine and increasing the competitiveness of the European defense industry," the European Commission emphasized.

The 1st round of EDIP calls for proposals will be available on the EU Funding & Tenders Portal starting March 31, 2026.