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(BRUSSELS) – In the light of Russia’s continuing war of aggression against Ukraine, the EU Commission and its foreign policy chief set out plans Tuesday for a major boost to Europe’s defence industrial readiness.
With the return of high-intensity conflict on the European continent, the Commission says the new European Defence Industrial Strategy (EDIS) sets a ‘clear, long-term vision to achieve defence industrial readiness in the European Union’. It has now tabled a a legislative proposal for a European Defence Industry Programme (EDIP) and a framework of measures to ensure the timely availability and supply of defence products.
The Strategy outlines plans to increase European defence industrial readiness, with Membger States investing ‘more, better, together, and European’. The European Defence Industrial Strategy presents a set of actions aiming at:
- Supporting a more efficient expression of the Member States’ collective defence demand, supported by incentivising Member States’ cooperation in the procurement phase of defence capabilities;
- Securing the availability of defence products, with investment in developing and bringing to market tomorrow’s state of the art defence technologies;
- Ensuring that national and EU budgets support adaptation of the European defence industry to the new security context;
- Mainstreaming a defence readiness culture across policies and calling for review of the European Investment Bank’s lending policy this year;
- Developing closer ties with Ukraine through its participation in EU defence initiatives and stimulating cooperation between the EU and Ukrainian defence industries;
- Teaming up with NATO and international partners, and cooperating more closely with Ukraine.
The Strategy sets indicators, to measure states’ progress towards industrial readiness. Member States are invited to:
- Procure at least 40% of defence equipment in a collaborative manner by 2030;
- Ensure that, by 2030, the value of intra-EU defence trade represents at least 35% of the value of the EU defence market;
- Make steady progress towards procuring at least 50% of their defence procurement budget within the EU by 2030 and 60% by 2035.
The EDIP programme will mobilise 1.5 billion of the EU budget over the period 2025-2027. EDIP will support the industrialisation of products stemming from cooperative R&D actions supported by the European Defence Fund. The EDIP budget may also be used to set up a fund to Accelerate defence supply chains. This will aim to facilitate access to debt and/or equity financing for SMEs and small midcaps industrialising defence technologies and/or manufacturing defence products.
EDIP budget will also enhance the EU’s defence industrial cooperation with Ukraine and support the development of its defence industrial and technological base.
On the regulatory aspects, EDIP will make available a new legal framework, the Structure for European Armament Programme (SEAP), to facilitate and scale up Member States’ cooperation on defence equipment.
It also entails an EU-wide regime for security of supply of defence equipment, which will ensure constant access to all necessary defence products in Europe and provide a framework to efficiently react to possible future supply crises of defence products. In addition, EDIP will allow the launch of European Defence Projects of Common Interest, with potential EU financial support.
European Defence Industrial Strategy and the European Defence Industry Programme - guide
