Europa Posted on 2026-03-31 10:03:00

1.5 billion euros to strengthen the defense industry - European Commission approves a new financing package

From Dorian Koça

1.5 billion euros to strengthen the defense industry - European Commission

The European Commission adopted the framework for the implementation of the European Defence Industrial Programme (EDIP), with a total value of 1.5 billion euros, which aims to strengthen and modernise Europe's defence industry, increase production capacity and support technological and industrial sustainability.

According to the Commission, the program aims to address critical challenges in the field of European defense and security, emphasizing the strengthening of defense production, cooperation with Ukraine, joint procurement of equipment, and the development of joint European defense projects.

Of the total package of €1.5 billion, more than €700 million will be allocated to increase the production of key defence components and products, such as drone interceptors, missiles and ammunition. This includes €260 million through the Instrument for Support to Ukraine (USI) to strengthen and modernise the country's defence industrial base.

At the same time, 325 million euros will be directed to European Defense Projects of Common Interest (EDPCI), which aim to develop large-scale collaborative industrial programs, also open to Norway and Ukraine.

To strengthen joint procurement of defence equipment, the Commission is providing €240 million for projects covering areas such as drone interception systems, air defence, missile defence, as well as land and naval combat systems.

A special emphasis is also placed on innovation, with €100 million to be made available through the FAST Fund to support start-ups, small and medium-sized enterprises and small mid-caps in the defence sector. In addition, the new BraveTech EU initiative will be funded with €35.3 million, aiming to support innovative defence solutions for Ukraine and the EU.

The European Defence Industrial Programme (EDIP), which was adopted on 8 December 2025, is one of the EU's key initiatives to strengthen its defence preparedness and the European defence industry in the new security environment, providing a total of €1.5 billion in grants for the period 2026-2027.

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