The European Commission approved the European Defence Industry Programme (EDIP) programme on Monday, aiming to boost the European and Ukrainian defence industries, with a total budget of €1.5 billion.
The first call for proposals will be launched on Tuesday. The EDIP will enable defence industries in the European Union, Norway and Ukraine to "seize funding opportunities to strengthen defence cooperation and ramp up production," said Defence Commissioner Andrius Kubilius, quoted in a press release.
More than €700 million will be allocated to increasing production capacity for components and products deemed critical, including anti-drone systems, missiles and ammunition, the Commission explained.
A budget of €325 million will fund joint industrial projects of European interest, designed to strengthen the sector's integration and benefit a wide range of Member States. Those projects will also be open to Norway and Ukraine.
To reduce market fragmentation and improve efficiency, €240 million will be allocated to joint procurement of defence equipment, including anti-drone, air defence and missile defence systems, as well as land and naval capabilities.
Consortia of contracting authorities will be able to apply for grants of up to €20 million per project. The programme also provides €100 million in equity support for start-ups, SMEs and mid-cap companies.
The first calls for proposals will be published on Tuesday on the European funding portal.
