MEPs push for a more ambitious European defence industry programme

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• Measures to speed up the integration of EU defence industries 
• Greater financial support to boost the supply of military capabilities 
• Ukraine support instrument 

On Thursday, MEPs backed a draft law designed to strengthen Europe’s defence industry, ramp up defence product manufacturing and provide more support for Ukraine.

The Committees on Industry, Research and Energy and Security and Defence have adopted their position on the proposed creation of a European defence industry programme (EDIP). More specifically, MEPs backed measures to boost the European defence technological and industrial base (EDTIB), to strengthen EU defence and further integrate the EU defence industry. These measures include a significant increase in member states’ financial contributions to the EDIP, more aggregation of orders for the development of defence products, and enhanced use of joint procurement.

MEPs want the new programme to focus on improving the supply of weapons, ammunition and other crisis-relevant products, boosting manufacturing capacities or ensuring their ramp-up, reducing lead times for production and delivery, and increasing stockpiling.

Other principles agreed by MEPs to strengthen Europe’s defence capacity include the following:

• Introducing a “buy European” principle by which the EDIP should only fund products where the cost of components originating in the EU or associated countries represents at least the 70% of the estimated end product value.
• To be eligible for funds, European defence projects of common interest should involve at least six member states, or at least four that are facing high exposure to the risk of conventional military threats; MEPs want also Ukraine to participate.
• A European ‘military sales mechanism’ would work as a centralised catalogue of defence products and services to bolster EU-wide demand.
• A new, voluntary, Structure for European Armament Programme would scale up member states’ cooperation throughout the defence equipment lifecycle.
• An EU security of supply regime should gradually guarantee continuous access to essential defence products to tackle future supply crises; the regime would be managed by a Defence Industrial Readiness Board.

Military support for Ukraine

As part of the new EDIP regulation, MEPs also backed a Ukraine Support Instrument (USI) to ensure the Ukrainian defence industry’s modernisation and integration within the EDTIB. This EU funding would scale up direct investment in Ukraine’s defence industry, facilitate partnerships between EU and Ukrainian defence actors and increase EU procurement of defence capacities produced in Ukraine, including for Ukraine itself.

Quotes

“Our position on the EDIP sends a strong message to the Council to finalise its own position in order to start interinstitutional negotiations. The European Parliament will insist on establishing a strong regulation that will incentivise EU member states to boost joint procurement in order to build common European defence capabilities – stronger, strategic, efficient and united,” said Marie‑Agnes Strack-Zimmermann (Renew Europe, Germany), Chair of the Committee on Security and Defence.

“Today, Parliament has come together with an unprecedented sense of urgency and purpose. In record time, we’ve forged a broad and determined majority in support of strengthening Europe’s defence industrial base – because this is no longer just an option, it’s a strategic imperative. Europe stands at a historic crossroads. Faced with Russia’s threats, we must act with unity, ambition and resolve. Investing together, developing critical military capabilities jointly, and aligning our spending efforts at EU level is the only way forward. It’s time to end our dependence on external actors. A sovereign Europe is a stronger and safer Europe, and this vote on the EDIP is a clear step in that direction”, said Raphaël Glucksmann (S&D, France), co-rapporteur from the Committee on Security and Defence.

“The adoption of the EDIP report by a large majority today marks a major step for the security of the European continent and the strengthening of our defence industry. With this vote, the European Parliament is setting the bar high for the EU to enhance the sovereignty and resilience of our countries, build an effective governance framework, and design an ambitious and realistic financing solution. Our committees’ work in accelerated procedure means Parliament is ready to tackle the upcoming trilogue stage as soon as the Council has determined its position. This outcome, both in substance and pace, seemed impossible to achieve just a few weeks ago; with this important step, we have shown that our institution is rising to the challenge on this crucial issue for the future of Europe”, said François-Xavier Bellamy (EPP, France), co-rapporteur from the Committee on Industry, Research and Energy.

Next steps

The report was adopted by 70 votes to 46 with 8 abstentions. MEPs also decided to open negotiations with the Council to finalise the law, with 90 votes in favour, 20 against and with 5 abstentions. Parliament as a whole will be notified of this decision during the May plenary session.

Background

The European Commission put forward a proposal for a European defence industry programme (EDIP) regulation on 5 March 2024. The EDIP – with a proposed budget of €1.5 billion – seeks to achieve defence industrial readiness by bridging the gap between short-term emergency measures, such as the Act in Support of Ammunition Production (ASAP) and the European Defence Industry Reinforcement through Common Procurement Act (EDIRPA), that have been implemented since 2023 and will end in 2025, and a more structural, long-term approach.

The EDTIB comprises a number of large multinational companies, mid-caps and over 2,000 small and medium-sized enterprises, with an estimated combined annual turnover of €70 billion.