EU Parliament Approves First-Ever European Defence Industry Programme

Historic Vote Establishes €1.5 Billion Defence Initiative

The European Parliament has made history by approving the first-ever European Defence Industry Programme (EDIP), a landmark €1.5 billion initiative designed to strengthen the EU's defence capabilities and industrial base. The programme, adopted with 457 votes in favor, 148 against, and 33 abstentions, represents a significant shift toward greater European strategic autonomy in defence matters.

Key Features and Budget Allocation

The EDIP budget of €1.5 billion includes €300 million specifically earmarked for the Ukraine Support Instrument, which will help modernize Ukraine's defence industry and facilitate its integration with European defence systems. Additionally, the programme establishes a Fund to Accelerate Defence Supply Chain Transformation (FAST) with an indicative total of €150 million through additional financial contributions.

Marie-Agnes Strack-Zimmermann (Renew, DE), Chair of the Security and Defence Committee, emphasized the programme's significance: 'The EDIP marks a crucial step toward more efficient, faster, and truly European defence procurement and the strengthening of European defence capabilities. It is designed to have a lasting impact, serve as a reference point for future initiatives, and shape how European cooperation in defence production is organized after 2027.'

'Buy European' Principle and Joint Procurement

A central feature of the EDIP is the implementation of a 'buy European' principle, requiring that defence products seeking EU funding must source no more than 35% of their components from non-associated third countries. This measure aims to reduce dependency on external suppliers and strengthen the European defence industrial base.

The programme establishes a legal framework for European Defence Projects of Common Interest, which will only receive funding if at least four EU member states are involved. Ukraine will also be able to participate in these projects, marking an important step toward deeper defence cooperation.

Strategic Context and Political Support

François-Xavier Bellamy (EPP, FR), co-rapporteur of the Industry, Research and Energy Committee, highlighted the programme's strategic importance: 'EDIP is the first real EU defence instrument. Given Russia's large-scale war against our neighbors and repeated attacks on our own countries, we must strengthen our common defence systems and collectively ramp up defence capabilities. EDIP enables us to build a more resilient and sovereign Europe through joint investments, joint procurement from the European technological and industrial defence base, and further integration of Ukrainian and European defence industry.'

The programme responds to growing security concerns following Russia's invasion of Ukraine and represents a shift from short-term emergency measures to a more structural long-term approach. The European defence industrial base consists of several large multinationals, midcaps, and over 2,000 small and medium-sized enterprises, with an estimated annual turnover of €70 billion.

Next Steps and Implementation

Raphaël Glucksmann (S&D, FR), co-rapporteur of the Security and Defence Committee, noted the programme's transformative potential: 'This programme represents a major step forward for the security of the European continent and the development of our defence industry. After decades of dangerous dependencies that threatened the sovereignty of our democracies and the protection of our countries, the EDIP programme will reverse the import dependency that prevailed in Europe. It will genuinely strengthen our industrial base, enabling us to autonomously ensure that our armed forces have the resources to fulfill their mission.'

The legislation now awaits formal approval by EU member states before publication in the Official Journal. The EDIP builds on earlier emergency measures like the Ammunition Production Support Regulation (ASAP) and the Short-Term Instrument for Common Defence Procurement (Edirpa), creating a comprehensive framework for European defence industrial readiness.