The EU Council has formally adopted the European Defence Industry Programme, designed to boost EU defence readiness by strengthening the competitiveness and responsiveness of Europe’s defence technology industrial base.
The Council’s adoption marks the final step in the legislative procedure and will enable the programme’s timely implementation.
The European Defence Industry Programme (EDIP) – the cornerstone of the EU’s renewed commitment to bolster its defence readiness – will strengthen the ability of member states to face current and future threats, enhance the competitiveness of the EDTIB, and ensure the timely availability and supply of defence products across the Union.
The programme provides €1.5 billion in grants for the period 2025-2027. From this amount, €300 million is earmarked for a dedicated Ukraine Support Instrument, aimed at modernising and supporting Ukraine’s defence industry and fostering its integration into the wider European defence industrial ecosystem.
EDIP also allows for potential further budget reinforcements in the future, such as by voluntary financial contributions by member states or third parties.
Under the programme, the EU will fund:
- common procurement actions carried out by at least three countries (of which at least two must be member states), including for the establishment and maintenance of defence industrial readiness pools
- industrial reinforcement actions, consisting of activities to ramp-up the production capacity of critical defence products
- the launch of the European Defence Projects of Common Interest, collaborative industrial projects designed to contribute to the development of member states’ military capabilities critical for the security and defence interests of the Union
- supporting actions, including activities to increase interoperability and interchangeability, and activities to facilitate access to the defence market for SMEs, mid-caps and start-ups
To safeguard and strengthen the EU defence industry, whilst still maintaining cooperation with likeminded international partners, the regulation adopted today contains a clause by which components originating outside the EU and associated countries (EEA states), as well as Ukraine for the Ukraine Support Instrument, should not exceed 35% of total component costs of the end product. No components may be sourced from non-associated countries that conflict with the EU’s or member states’ security and defence interests.
Finally, the regulation also establishes the first EU-level security of supply framework designed to reinforce defence supply-chain resilience and improve the EU’s ability to respond swiftly in times of crises.
The regulation will be signed on 17 December 2025 and enter into force the day following its publication in the Official Journal of the European Union.
EDIP Proposal for a Regulation
European defence industry programme (background information)
