EU Adopts New Law to Launch European Defence Industry Programme

The EU adopted a law on Tuesday creating the European Defence Industry Programme (EDIP), a new €1.5 billion framework to accelerate defence manufacturing, expand joint procurement and increase backing for Ukraine as security pressures intensify.

EDIP is the EU’s first defence industry programme. It directs €300 million to the Ukraine Support Instrument to help modernise Ukraine’s defence sector and support its integration with European manufacturers. It also introduces the Fund to Accelerate Defence Supply Chain Transformation (FAST), set at a minimum of €150 million through additional contributions.

MEPs pushed for a larger budget by drawing extra resources from the Security Action for Europe instrument (SAFE). The programme also allows member states to redirect unspent Recovery and Resilience Facility funds to EDIP projects.

The legislation embeds a “buy European” rule: defence products receiving EDIP funding cannot include more than 35% of components sourced from non-associated third countries.

The programme establishes a legal structure for defence projects of common European interest. Projects must involve at least four member states, and Ukraine will be eligible to participate.

Committee Chair Marie-Agnes Strack-Zimmermann said EDIP marks “a more efficient, faster and genuinely European approach to defence procurement” that will shape how defence cooperation functions beyond 2027.

Raphaël Glucksmann said Europe must reinforce its defence systems amid Russia’s full-scale war, adding that EDIP boosts joint investment, common procurement and integration of Ukrainian and European industries.

François-Xavier Bellamy said the programme will help reverse Europe’s long-standing reliance on defence imports and strengthen its industrial base to ensure armed forces have the capabilities needed for their missions.

The legislation passed with 457 votes in favour, 148 against and 33 abstentions. It now requires formal endorsement by EU member states before appearing in the Official Journal.

EDIP is intended to bridge short-term emergency measures—such as ASAP and EDIRPA—with a long-term industrial model. Europe’s defence industrial base includes large multinationals, mid-sized companies and more than 2,000 SMEs, with an estimated annual turnover of €70 billion.