The selected projects span critical sectors including artificial intelligence, cyber defence, drones and counter-drone systems. The Commission said the investments are intended to ensure the European Union remains at the forefront of advanced defence technologies.
More than 15 of the projects will directly contribute to flagship initiatives such as the European Drone Defence Initiative, the Eastern Flank Watch, the European Air Shield and the European Space Shield. These programmes are designed to strengthen Europe’s operational readiness and resilience.
Among the initiatives, Project AETHER will focus on propulsion and thermal management systems to support drone defence capabilities. Cross-cutting projects will also provide enabling technologies such as sensors, digital transformation tools and cyber solutions.
The European Union is also expanding cooperation with Ukraine’s defence industry through the EU Defence Innovation Office in Kyiv. One example is Project STRATUS, which will develop an artificial intelligence-based cyber defence system for drone swarms and includes a Ukrainian subcontractor.
To encourage innovation, several projects will open sub-calls for start-ups and small and medium-sized enterprises. These companies may receive up to €60,000 each to integrate new technologies and enter the defence sector, with Ukrainian entities also eligible to participate.
A total of 634 entities from 26 EU Member States and Norway are involved in the selected projects. Small and medium-sized enterprises account for more than 38 percent of participants and will receive over 21 percent of the total funding.
Of the total investment, €675 million will be allocated to 32 capability development projects, while €332 million will support 25 research initiatives. The Commission will now begin preparing grant agreements with project consortia, aiming to finalise them before the end of the year.
The European Defence Fund is the EU’s main instrument for defence research and development cooperation, with a budget of €7.3 billion for the 2021–2027 period. The 2025 funding round attracted a record 410 proposals, representing a 37 percent increase compared with the previous year.
Source: European Commission (press release).
