Following the project selection process under the European Defence Fund (EDF) 2025, the European Commission has announced €1.07 billion in funding for 57 new defence initiatives. These projects involve companies from EU member states and Norway, as well as Ukrainian enterprises.
The funding is aimed at developing key defence technologies of the future, including artificial intelligence, cybersecurity, unmanned systems, and counter-drone technologies. All projects are aligned with the strategic objectives of the EU Defence Readiness Roadmap 2030.
Particular attention is being given to four major EU flagship initiatives: the European Counter-UAS programme, the strengthening of the Eastern Border Shield, the development of a European Air Shield, and the European Space Shield. More than 15 projects directly support these priorities.
Among the specific developments is the AETHER project, which will focus on propulsion and thermal management systems for drones, as well as the STRATUS project, aimed at developing an AI-based cyber defence system for the control of drone swarms. The latter includes a Ukrainian subcontractor, enabling the integration of Ukraine’s battlefield experience into European defence development.
In total, the programme involves 634 participants from 26 EU countries and Norway. With the support of the EU Defence Innovation Office in Kyiv, additional Ukrainian companies are being brought into cooperation, further strengthening Ukraine’s integration into the European defence industry.
Of the total €1.07 billion budget, around €675 million will be allocated to 32 defence capability development projects, while a further €332 million will go to 25 research initiatives. More than 38% of participants are small and medium-sized enterprises, which will receive over 21% of the funding. Separate “sub-calls” with grants of up to €60,000 are available for startups and SMEs, and Ukrainian companies may also participate in these programmes.
Following the completion of the selection process, the European Commission will begin preparing grant agreements, which are expected to be signed by the end of the year. The total EDF budget for 2021–2027 stands at €7.3 billion, and the 2025 call was a record one, attracting 410 applications, up 37% from last year.
In addition, on May 27 the Council of the EU approved the creation of a new financial instrument, the SAFE initiative (Security Action for Europe). It provides for up to €150 billion to be mobilised for investment in the defence industries of EU member states. The funds will support the large-scale development of Europe’s defence technological and industrial base, expansion of production, the elimination of critical shortages, and the strengthening of the EU’s defence capabilities.
The SAFE programme also includes a 10-year grace period for repayment and the option to conclude agreements with third countries, including Ukraine. It is the first stage of the broader ReArm Europe initiative through 2030, whose total scale could reach €800 billion and which also envisages stronger support for Ukraine.
