European Defence Industry Programme: Council gives final approval
Today the Council has formally adopted the European Defence Industry Programme (EDIP), an instrument designed to boost the EU’s defence readiness by strengthening the competitiveness and responsiveness of the European Defence Technology Industrial Base (EDTIB). The adoption marks the final step in the legislative procedure and will enable the programme’s timely implementation.
A strategic boost to EU defence
EDIP is the cornerstone of the EU’s renewed commitment to bolster its defence readiness. It 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. Out of this amount, €300 million are earmarked for a dedicated Ukraine Support Instrument, a pivotal and unique 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.
How it will work in practice
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
Developing a resilient European supply chain
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.
Lastly, 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.
Next steps
The regulation will be signed on 17 December 2025 and enter into force on the day following that of its publication in the Official Journal of the European Union.
Background
On 5 March 2024, the Commission tabled a proposal for a regulation establishing EDIP. Endowed with a financial package of €1.5 billion for the period from 2025 to 2027, the proposal for EDIP is designed to build on existing programmes aimed at incentivising the common procurement of defence products (the EDIRPA Regulation) and the reinforcement of defence industry manufacturing capacities (the ASAP Regulation), giving them a longer-term and more structured perspective.
On 25 November 2025, the European Parliament formally adopted the regulation, paving the way for its final approval by the Council today.