The European Parliament has voted to establish a European defence programme (EDIP) to strengthen the European defence sector.
The defence programme will have a budget of €1.5 billion, with €300 million specifically allocated to support Ukraine.
Under the new rules, defence projects seeking EDIP support must involve at least four EU member states, with Ukraine eligible to participate.
The legislation also encourages countries to use unspent funds from the EU’s 'Recovery and Resilience Facility' — originally set up to aid post-pandemic economic recovery — to finance defence projects.
‘Buy European’ principle introduced
Components of defence products purchased with EDIP funding must not contain more than 35% of materials from countries outside the EU and its close partners.
This requirement is designed to prioritise European firms when awarding contracts.
The industry base covered by the programme includes large companies, mid-sized firms, and over 2,000 small and medium-sized enterprises with a combined annual turnover estimated at €70 billion.
The legislation behind the programme passed with 457 votes in favour, 148 against, and 33 abstentions in the European Parliament. It now awaits formal endorsement by EU member states before it comes into effect.
