The European Commission has approved a €1.5 billion work programme for 2026–2027 under the European Defence Industry Programme, known as EDIP, to support defence manufacturing and related projects across Europe.
More than €700 million of the funding will be used to increase production of defence components and products including counter-drone systems, missiles and ammunition, the European Commission explained in a statement on Tuesday.
A further €260 million will be provided through EDIP’s Ukraine Support Instrument to back collaborative projects intended to rebuild and modernise Ukraine’s Defence Technological and Industrial Base — the country’s defence manufacturing and technology sector — with production capacity increases planned in both Ukraine and Europe.
Funding of €325 million has been allocated to European Defence Projects of Common Interest, a scheme to launch and implement collaborative industrial projects that are also open to Norway and Ukraine.
Joint buying and support for smaller firms
The Commission has set aside €240 million for joint procurement of defence equipment by EU member states and Norway, covering areas including counter-drone, air and missile defence, and ground and naval combat systems.
Consortia of contracting authorities will be able to apply for grants of up to €20 million per project for joint purchases.
Defence start-ups and smaller firms, including small and medium-sized enterprises and small mid-caps, will receive €100 million in equity support through the Fund Accelerating Defence Supply Chains Transformation, known as FAST.
An additional €35.3 million will go to a defence innovation programme under the BraveTech EU initiative, funded through EDIP’s Ukraine Support Instrument, supporting Ukrainian and EU industry — particularly start-ups and SMEs.
The first round of EDIP calls for proposals was published on the EU Funding & Tenders Portal on 31 March 2026.
