EU approves €1.5-billion program to strengthen European, Ukrainian defence

The European Commission has approved a €1.5-billion European Defence Industry Programme (EDIP) aimed at bolstering European and Ukrainian defence industries, the Commission’s press service announced.

Over €700 million will be allocated to increasing production of critical components and equipment, including counter-drone systems, missiles, and ammunition. Of this, €260 million is earmarked for the restoration and modernisation of Ukraine's Defence Technological and Industrial Base (DTIB) through joint investment projects in Ukraine and Europe.

€325 million will fund “ambitious collaborative industrial projects,” while a portion of the investments will support small and medium-sized defence enterprises. 

€35.3 million is designated for Ukrainian and EU startups to develop innovations addressing the urgent needs of the Armed Forces of Ukraine and to enhance the competitiveness of Europe’s defence sector.

To reduce fragmentation and improve program efficiency, €240 million will finance joint procurement by EU countries of air and missile defence systems, counter-drone equipment, and ground and naval combat systems.

The program aims to strengthen and modernise European defence manufacturing, expand production capacities, and ensure advanced technologies, resilience, and a stable supply of military equipment to member states’ armed forces. It includes a €300 million USI mechanism to support the Ukrainian armed forces.

The European Defence Industry Programme (EDIP) was adopted on 8 December 2025 as part of the EU’s efforts to strengthen its defence capabilities and advance Europe’s defence sector amid a changing security environment.

By Jeyhun Aghazada