The European Commission welcomes the political agreement reached today between the European Parliament and the Council on the European Defence Industry Programme (EDIP), a key instrument to support common procurement and industrial ramp-up, as well as to implement the Defence Readiness Roadmap 2030 and the proposed Defence Readiness Flagships.
European Commission President Ursula von der Leyen said: "I welcome the agreement on the European Defence Industry Programme. €1.5 billion to strengthen Europe's defence industry, support Ukraine and ensure we are defence-ready by 2030, in line with our 'Preserving Peace' roadmap. Because when we invest in readiness, we invest in peace. Congratulations to the Danish Presidency for seeing this crucial programme through."
With a budget of €1.5 billion for 2025–2027, EDIP introduces targeted measures to address the main challenges faced by Europe's defence industry, including industrialisation of defence products, industrial ramp-up, support to European supply chains and SMEs, and the development of Ukraine's defence technological and industrial base.
The co-legislators also provisionally agreed on key principles, including an "EU-made content" rule requiring at least 65% of components in funded projects to originate from the EU or associated countries. This will ensure EDIP first and foremost support the Union's defence industry.
The co-legislators also provisionally endorsed the creation of a Ukraine Support Instrument, aimed at modernising Ukraine's defence industry, fostering partnerships between EU and Ukrainian defence actors, and accelerating the integration of the Ukraine defence industry with the EDTIB.
Furthermore, EDIP introduces new mechanisms such the European Defence Projects of Common Interest, that will provide collaborative frameworks to implement the Defence Readiness Flagships, the voluntary Structure for European Armament Programme (SEAP), which will facilitate cooperative projects among Member States and may grant VAT exemptions for jointly owned equipment. Additionally, a first ever EU Security of Supply Regime will ensure access to critical defence products and enhance the Union's capacity to respond to future supply chain crises.
Next steps
As soon as EDIP enters into force, the Commission will work on the programming with a view to finance the most pressing priorities in line with the Defence Readiness Roadmap 2030.
Background
Tabled by the Commission in March 2024, EDIP constitutes the first comprehensive EU framework designed for strengthening Europe's defence technological and industrial base (EDTIB). The new programme aims to bridge the gap between short-term emergency instruments, including the Act in Support of Ammunition Production (ASAP) , the European Defence Industry Reinforcement through Common Procurement Act (EDIRPA) , and the EU's long-term objective of ensuring sustained defence industrial readiness. It also complements the European Defence Fund .
In March 2025 the Commission proposed the White Paper for European Defence – Readiness 2030 and its ReArm Europe Plan/Readiness 2030 as an ambitious defence package providing financial levers to EU Member States to drive an investment surge in defence capabilities.
The activation of the national escape clause of the Stability and Growth Pact for defence purposes together with the Security Action for Europe (SAFE) loan form the backbone of the ReArm Europe Plan / Readiness 2030, enabling Member States to substantially and rapidly scale up their investments in European defence.
Today, the Commission and the High Representative have also adopted the 'Preserving Peace - Defence Readiness Roadmap 2030' , a comprehensive plan to strengthen European defence capabilities.
