“EU agrees on €1.5 billion EDIP defense program with support for Ukraine: what it entailsThe EU Council and the European Parliament have agreed on the European Defense Industry Program (EDIP) for €1.5 billion for
2025-2027. The program provides €300 million to support Ukraine and cooperate with Ukrainian companies.
”, — write: unn.ua
Details”The Presidency of the EU Council and negotiators from the European Parliament have reached a provisional agreement on the European Defence Industry Programme (EDIP) – a targeted defence funding programme worth 1.5 billion euros for the period 2025–2027,” the statement said.
EDIP, as stated, aims to enhance the EU’s defence capabilities by increasing the competitiveness and responsiveness of the European Defence Technology Industrial Base (EDTIB).
“It also aims to support cooperation in the defence industry with Ukraine and Ukrainian companies through a dedicated Ukraine Support Instrument with a view to its future integration into the EDTIB,” the EU Council reported.
In addition, as noted, EDIP establishes the first-ever mechanism for ensuring the security of supply of defence products throughout the EU, as well as a legal toolkit to facilitate long-term cooperation in armaments between member states (Structure for European Armament Programme).
The EDIP program, as stated by Troels Lund Poulsen, Deputy Prime Minister and Minister of Defence of Denmark, which holds the presidency of the EU Council, “will deepen our partnership with Ukraine, bringing its defence industry closer to ours, which will benefit both Europe and Ukraine.”
Increasing EU defence capabilities with a 1.5 billion euro budgetThe provisional agreement reached on October 16, as reported, “confirms the budget proposed by the European Commission for EDIP, namely 1.5 billion euros in grants.
“Of the total budget, 300 million euros will be allocated to the Ukraine Support Instrument,” the statement said.
The EU Council and the European Parliament have proposed that the European Commission “explore options for increasing the overall EDIP budget in the future, including the Ukraine Support Instrument and the proposed Fund to Accelerate Defence Supply Chains Transformation (FAST).”
Building European capacities and supply chainsThe EU Council and the European Parliament, as reported, “agreed that the value of components produced outside the EU and associated countries (EEA states) should not exceed 35% of the estimated value of components of the final product, which will ensure a balance between the principle of European preferences and cooperation with partner countries in favor of the European industry.” No components, as stated, “will be purchased from non-associated countries if this contradicts the security and defense interests of the EU or its member states.”
EDIP, as noted, also establishes a framework for European Defence Projects of Common Interest (EDPCI), which aim to develop capabilities, including ensuring access to strategic areas, enabling means and systems.
Bringing Ukraine closer to the European defence industry”The EU Council and the European Parliament have agreed on further support for Ukraine through the Ukraine Support Instrument, involving the Ukrainian defence industry from the very beginning. In addition, it was decided that Ukraine will be able to participate in the so-called EDPCI. The Ukraine Support Instrument will be provided with a financial package of 300 million euros,” the statement said.
Ensuring security of supplyThe provisional agreement reached, as stated, establishes “the EU’s first-ever defence supply security regime, designed to ensure timely and reliable access to defence products and components during crises.” The agreement, as reported, provides for a two-stage approach with a clear distinction between defence and non-military products.
Creation of a European military sales mechanismThrough EDIP, the EU, as reported, is creating a European military sales mechanism, which, among other things, “will include a centralized catalogue of defence products and facilitate the supply of defence products, increasing demand at the EU level and enhancing the competitiveness of the European defence industry in the international market.” It also provides for the possibility of creating “pools” of defence products to ensure rapid delivery of equipment.
What’s nextThe agreement reached must be approved by both institutions before its official adoption.
AdditionOn March 5, 2024, the European Commission submitted a proposal for a regulation establishing EDIP. The EDIP proposal, which provides for 1.5 billion euros in funding for the period from 2025 to 2027, is designed to develop existing programs aimed at stimulating joint procurement of defence products (EDIRPA Regulation) and strengthening the production capacities of the defence industry (ASAP Regulation), which will give them a greater perspective.