The Council of the European Union has officially approved the launch of the bloc’s first-ever European Defence Industry Programme (EDIP), with a budget of €1.5 billion through 2027. The decision, adopted on 8 December, concludes the legislative process and enables the operational implementation of the initiative.
One of the key components of the programme is a dedicated financial support instrument for Ukraine. It will receive €300 million aimed at modernizing and developing Ukraine’s defence industrial base. The EU emphasizes that EDIP is designed to strengthen the defence capabilities of both the Union and its partners by ensuring more stable and faster supplies of weapons and critical defence products.
The programme includes funding for joint procurement projects involving at least three participating states, two of which must be EU member states. These projects will facilitate the creation of industrial reserves and the scaling-up of production of essential defence products.
EDIP also introduces new requirements for the composition of products manufactured under the Ukraine support instrument. Components produced outside the EU and associated countries must not exceed 35% of the final product’s value. Accordingly, at least 65% of component value must originate from EU member states or partner countries.
The launch of the programme is closely tied to Europe’s efforts to expand its defence production capacity in response to threats from Russia and the ongoing war in Ukraine. The EU expects EDIP to strengthen the European Defence Technological and Industrial Base (EDTIB), improve supply coordination, and enhance the resilience of the defence sector.
The decision also aims to encourage joint defence procurement among EU member states, expand production capabilities, and reinforce support for Ukraine.
The EDIP regulation is scheduled to be formally signed on 17 December 2025 and will enter into force the day after its publication in the Official Journal of the EU.
