this post was submitted on 29 Nov 2025
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The regulation, already informally agreed with the Council, will establish the first-ever European defence industry programme (EDIP). The scheme seeks to strengthen the European defence technological and industrial base, and boost European defence capabilities.

Of EDIP’s €1.5 billion budget, €300 million would go to the Ukraine Support Instrument. Co-legislators also agreed to create a Fund to Accelerate Defence Supply Chain Transformation (the FAST instrument) to total an indicative amount of at least €150 million through additional financial contributions.

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MEPs also championed the “buy European” principle: for defence products to secure funding, the cost of their components originating from non-associated third countries cannot exceed 35% of the estimated total cost of components.

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The programme will set up a legal framework for European defence projects of common interest. To be eligible for funding, these will need to involve at least four member states; Ukraine will be able to participate. The legislation will also set up a Ukraine Support Instrument (USI) to help modernise the Ukrainian defence industry and ease its integration with the European defence industry.

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