The Danish Presidency of the EU Council and the European Parliament have reached a provisional agreement on the European Defence Industrial Programme (EDIP), which will allow Ukraine to participate in European Defence Projects of Common Interest (EDPCI), the EU Council press service reported.
“The presidency of the Council and negotiators from the European Parliament (EP) reached a provisional agreement on the European Defence Industry Programme (EDIP), a dedicated financing programme for defence worth €1.5 billion for the period 2025-2027,” the statement reads.
EDIP aims to strengthen the EU’s defense readiness by enhancing the competitiveness and efficiency of the European Defence Technological and Industrial Base (EDTIB). It will also support cooperation in the defense industry with Ukraine and Ukrainian companies through a dedicated Ukraine Support Instrument, aimed at facilitating Ukraine’s future integration into the EDTIB.
The EU Council and European Parliament agreed to provide ongoing support to Ukraine via the Ukraine Support Instrument, involving the Ukrainian defense industry in the instrument from the outset. It was also decided that Ukraine will be able to participate in European Defence Projects of Common Interest, the press service said.
The provisional agreement reached on October 16 confirms the budget proposed by the European Commission for EDIP at €1.5 billion in grants. Of the total budget, €300 million will be allocated to the Ukraine Support Instrument.
The EU Council and European Parliament requested that the European Commission explore options to increase the overall EDIP budget in the future, including for the Ukraine Support Instrument and the proposed Fund for Accelerating the Transformation of Defence Supply Chains (FAST).
“The European Defence Industry Programme is key to Europe's defence readiness. It will boost our capacity to produce and supply critical defence equipment and ensure that we can respond swiftly and decisively to the increasingly complex security environment. At the same time, it will deepen our partnership with Ukraine by bringing its defence industry closer to ours - to the mutual benefit of Europe and Ukraine,” said Troels Lund Poulsen – Danish Deputy Prime Minister and Minister for Defence.
At the same time, he noted, it will deepen the partnership with Ukraine, bringing its defense industry closer to the European one, which is mutually beneficial for Europe and Ukraine.
The Council and European Parliament agreed that the value of defense product components originating from outside the EU and associated countries (EEA states) should not exceed 35% of the calculated value of such components. Moreover, no components will be sourced from non-associated countries to avoid conflicts with the security and defense interests of the EU or its member states.
The provisional agreement still needs to be formally approved by the EU Council and European Parliament before it can be officially adopted.
