The European Commission has recently introduced the European Union’s first-ever European Defence Industrial Strategy. The proposal suggests creating a regulatory European Defence Industry Programme that would activate a budget of $1.6 billion from the EU. The allocation is planned for 2025-2027, and it aims to continue enhancing the competitiveness of the defense technological and industrial base in the region.
EDIP focuses on implementing and industrializing products from cooperative research and development projects funded by the European Defence Fund. The program’s budget may also be utilized to establish a fund to accelerate the transformation of the defense supply chain. Furthermore, EDIP funding assistance may be directed toward developing Ukraine’s defense industrial and technological base.
In addition to the support program, EDIS sets indicators to measure the growth of EU member states’ industrial readiness toward the future. The EDIS benchmarks include collaborative procurement of at least 40 percent of members’ defense requirements by 2030 and the value of intra-EU defense trade accounting for at least 35 percent of the value of the EU defense market by 2030.
EU members are also urged under the EDIS to spend at least 50 percent of their defense budget within the EU by 2030 and 60 percent by 2035.
