Commission adopts €1.5 billion work programme to boost European and Ukrainian defence industry

March 31, 2026 by European Union Leave a Comment

This article is published in association with European Investment Bank. — (Credit: Unsplash)

This article is brought to you in association with the European Commission.

The European Commission approved today a €1.5 billion work programme under the European Defence Industry Programme (EDIP) to enhance and modernise Europe’s defence industry, boost production capacity and secure technological advancement and resilience.

EDIP tackles pressing challenges in European defence and security by boosting industrial production capacities, reinforcing cooperation with Ukraine, strengthening joint European procurement and developing European defence projects of common interest, marking a significant step in the EU’s efforts to improve Europe’s security.

Investment priorities and allocation of funds

More than €700 million will support the production increase of key defence components and products, including counter-drones systems, missiles and ammunition. This includes €260 million under the Ukraine Support Instrument (USI) of EDIP, to help rebuild and modernise Ukraine’s Defence Technological and Industrial Base (DTIB) by investing in collaborative projects that increase production capacities in both Ukraine and Europe.

The European Defence Projects of Common Interest (EDPCI) will receive €325 million to launch and implement ambitious collaborative industrial projects. These projects aim to benefit a broader part of the EU and are also open to Norway and Ukraine.

To reduce fragmentation and boost efficiency, EDIP will fund €240 million for the joint procurement of defence equipment, including counter-drone, air and missile defence and ground and naval combat systems, by Member States and Norway. Consortia of contracting authorities can apply for funding, with grants available for up to €20 million per project.

Defence start-ups, including Small and Medium-sized enterprises (SMEs) and small mid-caps will get €100 million in equity support through the Fund Accelerating Defence Supply Chains Transformation (FAST). Under the BraveTech EU initiative, a new defence innovation programme will receive additional €35.3 million from EDIP USI, supporting both Ukrainian and EU industries, particularly start-ups and SMEs, boosting innovation to tackle urgent challenges faced by the Ukrainian armed forces and improve the competitiveness of the European defence industry.

Next steps

The first round of EDIP calls for proposals will be visible on the EU Funding & Tenders Portal as of 31 March 2026.

Background

The European defence industry programme (EDIP) has been adopted on 8 December 2025. It is one of the many initiatives the EU has taken to boost its defence readiness and enhance Europe’s defence industry in light of an evolving security landscape. The programme provides €1.5 billion in grants for the period 2026-2027.

For more information

2026 EDIP Work Programme

EDIP Regulation

European Funding & Tenders Portal

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