The European Union has reached a provisional agreement on the European Defense Industry Program (EDIP) - a new €1.5 billion initiative to strengthen Europe’s defense readiness and deepen cooperation with Ukraine’s defense sector.
The EDIP is designed to boost Europe’s ability to produce and supply critical military equipment, while supporting cooperation with Ukraine through a dedicated Ukraine Support Instrument.
The instrument, worth €300 million, will involve Ukrainian defense companies from the start, with the goal of aligning Ukraine’s defense industry more closely with Europe’s.
The deal, reached on 16 October between negotiators from the European Parliament and the Council of the EU, will fund the bloc’s defense industry from 2025 to 2027.
Once formally adopted, the program will enhance the competitiveness of the European Defense Technology Industrial Base and create the EU’s first mechanism to ensure the security of supply for defense products.
“[This program] will deepen our partnership with Ukraine by bringing its defense industry closer to ours - to the mutual benefit of Europe and Ukraine,” said Danish Defense Minister Troels Lund Poulsen, representing the Council presidency.
The agreement also sets a 35% cap on the value of components originating outside the EU and European Economic Area, ensuring that no parts are sourced from countries that contravene EU security interests.
It establishes a legal “toolbox” for long-term joint armament projects and introduces a European military sales mechanism to centralize catalogues and facilitate rapid deliveries.
Before the program can take effect, the deal must be formally approved by both the Council and the European Parliament.
