Brussels: Europe and the Arabs
In a European statement distributed in Brussels, the European Commission welcomed the political agreement reached Thursday evening between the European Parliament and the Council on the European Defence Industry Programme (EDIP), a key tool to support joint procurement and intensify industrial efforts, as well as the implementation of the 2030 Defence Readiness Roadmap and the proposed flagship defence readiness projects.
European Commission President Ursula von der Leyen stated: "I welcome the agreement on the European Defence Industry Programme. €1.5 billion to strengthen the European defence industry, support Ukraine, and ensure our defence readiness by 2030, in line with our 'Sustaining Peace' roadmap. Because when we invest in readiness, we invest in peace. Congratulations to the Danish Presidency on its successful implementation of this vital programme."
With a budget of €1.5 billion for the period 2025-2027, the EDIP project offers targeted measures to address key challenges facing the European defense industry, including defense product manufacturing, industrial production ramp-up, support for European supply chains and SMEs, and the development of the Ukrainian defense technological and industrial base.
Participating legislators also provisionally agreed on key principles, including the "EU-made content" rule, which requires that at least 65% of project components be financed by the EU or associated countries. This will ensure that the EDIP project primarily supports the EU's defense industry.
Participating legislators also provisionally endorsed the establishment of the Ukraine Support Instrument, which aims to modernize the Ukrainian defense industry, strengthen partnerships between the EU and Ukrainian defense actors, and accelerate the integration of the Ukrainian defense industry into the EDTIB.
Furthermore, the EDIP introduces new mechanisms, such as the European Defense Projects of Common Interest, which will provide cooperative frameworks for implementing flagship defense preparedness projects, and the voluntary structure of the European Armaments Program (SEAP), which will facilitate cooperative projects between Member States and potentially grant VAT exemptions for jointly owned equipment. Furthermore, the EU's first security of supply system will ensure access to essential defense products and enhance the Union's ability to respond to future supply chain crises.
Next Steps
Once the EDIP enters into force, the Commission will develop programming to finance the most urgent priorities, in line with the 2030 Defense Preparedness Roadmap.
The EDIP, which the Commission launched in March 2024, constitutes the EU's first comprehensive framework designed to strengthen the European Defense Technological and Industrial Base (EDTIB). The new program aims to bridge the gap between short-term emergency instruments, including the Ammunition Support Act (ASAP) and the European Defence Industry Enhancement through Joint Procurement Act (EDIRPA), and the EU's long-term goal of ensuring sustainable defense industrial readiness. The program also complements the European Defence Fund.
In March 2025, the European Commission proposed the European Defence White Paper - Readiness 2030 and the Rearmament Europe/Readiness 2030 Plan, an ambitious defense package that provides financial tools for EU Member States to drive investment in defense capabilities.
The activation of the Stability and Growth Pact's national opt-out clause for defense purposes, along with the Security Action for Europe (SAFE) Loan, forms the backbone of Rearmament Europe/Readiness 2030, enabling Member States to significantly and rapidly increase their investments in European defense.
Today, the Commission and the High Representative also adopted the "Roadmap for Keeping Peace - Defense Readiness 2030," a comprehensive plan to strengthen European defense capabilities.