European Defence Industry Programme: EU gives final approval

On 8 December, the Council of the European Union formally adopted the European Defence Industry Programme (EDIP), an instrument designed to boost the EU’s defence readiness and support Ukraine.

EDIP will strengthen the ability of member states to face current and future threats, enhance the competitiveness of the European Defence Technology Industrial Base (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,” the Council’s press release says.

EDIP also allows for potential further budget reinforcements in the future, such as by voluntary financial contributions by member states or third parties.

To safeguard and strengthen the EU defence industry, while still maintaining cooperation with likeminded international partners, the regulation adopted on Monday 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. Also, no components may be sourced from non-associated countries that conflict with the EU’s or member states’ security and defence interests.

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.

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Press release