The European Commission has given the “green light” for the financing of defence industrial production.
The Commission approved the implementation framework for the European Defence Industry Programme (EDIP), with a budget of 1.5 billion euros, primarily aimed at strengthening and integrating the European Defence Technological and Industrial Base in order to enhance Europe’s strategic autonomy in the production, procurement, and innovation of defence equipment. The first call for proposals will be published today, Tuesday, 31 March 2026, on the EU Funding and Tenders Portal.
It is worth noting that, despite its relatively limited budget, EDIP is expected to mobilise investments of significantly greater value over the next two years (2026–2027), during which it will be operational. Approved on 8 December 2025, EDIP constitutes one of the EU’s key initiatives to bolster defence readiness and support the European defence industry in the evolving security environment.
Priorities
More than 700 million euros will support increased production of critical defence components and products, including counter-drone systems, missiles, and ammunition.
European Defence Projects of Common Interest (EDPCIs) will receive 325 million to launch and implement collaborative industrial projects.
To enhance joint procurement of defence equipment, the Commission has earmarked 240 million euros for projects covering areas such as drone interception systems, air defence, missile defence, as well as land and naval combat systems.
Start-ups in the defence sector, including small and medium-sized enterprises (SMEs) and small mid-cap companies, will receive 100 million through the Fund to Accelerate Defence Supply Chains Transformation (FAST).
In addition, under the BraveTech EU initiative—a new defence innovation programme—35.3 million will be allocated from the EDIP’s innovation strand (EDIP USI) to support cutting-edge defence solutions.
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