The programme is designed to address pressing security challenges by expanding industrial output and reinforcing cooperation with Ukraine. It also supports joint procurement among European countries and the development of defence projects of common interest.
More than €700 million has been allocated to increase the production of key defence components, including counter-drone systems, missiles and ammunition. Of this, €260 million will be provided through the Ukraine Support Instrument to help rebuild and modernise Ukraine’s defence technological and industrial base through collaborative projects.
A further €325 million will be directed towards European Defence Projects of Common Interest. These initiatives aim to support large-scale industrial cooperation and are open not only to EU Member States but also to Norway and Ukraine.
To reduce fragmentation and improve efficiency, €240 million will fund joint procurement of defence equipment. This includes systems related to counter-drone capabilities, air and missile defence, as well as ground and naval combat platforms.
The programme also includes €100 million in equity support for defence start-ups, including small and medium-sized enterprises and small mid-cap companies. In addition, €35.3 million will be allocated under the BraveTech EU initiative to support innovation in both European and Ukrainian defence industries.
The first calls for proposals under the programme will be published on the EU Funding and Tenders Portal from 31 March 2026. This marks the beginning of the implementation phase for projects funded under the initiative.
The European Defence Industry Programme was formally adopted on 8 December 2025 as part of broader efforts to strengthen Europe’s defence readiness. It provides €1.5 billion in grants for the 2026–2027 period in response to an evolving security environment.
