After months of difficult negotiations, the European Union reached an agreement to launch a new support program for the continent’s defense industry, on Thursday, Oct. 16. The initiative, called the European Defence Industry Programme (EDIP), will start with an initial budget of 1.5 billion euros in grants and is set to promote joint defense projects across member states from 2025 to 2027, according to the European Council.
A Long-Awaited Deal After Tough Negotiations
The deal marks a significant milestone in the EU’s ongoing efforts to build a more autonomous defense capability. It comes amid growing concerns over Europe’s heavy reliance on non-EU defense suppliers, particularly those based in the United States. Currently, around 60% of the EU’s arms and ammunition purchases come from outside the bloc—a dependency Brussels aims to reduce to 45%.
The negotiations had long been stalled over whether the program should favor European defense firms or allow greater flexibility for non-EU suppliers. The final compromise limits spending on components and materials sourced from outside the EU—or from partner countries such as Norway—to no more than 35% of total investment costs. This threshold aims to boost Europe’s internal industrial base while maintaining some strategic partnerships.
In addition to supporting EU member states, Ukraine will also benefit from the scheme, receiving 300 million euros in funding. The European Parliament, which had pushed for more substantial financing, succeeded in opening the door for contributions from non-EU partners such as the United Kingdom and Canada, potentially expanding the program’s overall budget.
Toward a More Independent European Defense
Beyond the financial support, EDIP lays the groundwork for a new legal framework to facilitate collective defense investments—an area traditionally managed at the national level. The program complements other recent EU initiatives designed to rearm the continent and strengthen Ukraine’s defense capacity in the face of what the bloc perceives as a mounting Russian threat.
The agreement also coincided with the presentation of a new EU “roadmap” outlining steps to reinforce Europe’s defense strategy by 2030, underscoring the bloc’s ambition to stand more firmly on its own in matters of security and defense.
