The European Defence Industry Programme (EDIP) is the latest initiative by the European Union aimed at strengthening the continent’s defense sector. The program allocates €1.5 billion in grants for innovative projects, joint European defense procurement, and increased production capacity—alongside specific support for Ukraine amounting to €300 million. Designed to serve the collective interests of the EU rather than individual member states, the funding is expected to be deployed within the next two years.
“We are moving decisively into joint defense projects. This includes loans from the SAFE program, of which Poland is the largest beneficiary, and now also EDIP, the European Defence Industry Programme. We have €1.5 billion to allocate quickly, but this time in the form of grants, not loans, for projects developed by Poland in cooperation with academia, R&D and startups,”
said Michał Szczerba, Member of the European Parliament from the Civic Coalition, in an interview with Newseria.
EDIP is a EU funding mechanism that provides grants to support the defense industry, including scaling up production and building new industrial facilities. It aims to strengthen the technological and industrial base of the European defense sector—critical for increasing the EU’s defense autonomy and operational capabilities. One of the program’s key goals is to support joint procurement by EU member states and foster industrial integration across borders.
A political agreement on EDIP was reached in October between Members of the European Parliament and the Danish EU Council Presidency. The program must now be formally approved by both the European Parliament and the Council before entering into force.
“In Parliament, as co-legislators, we worked hard to ensure companies like PGZ and their products could participate in this program. We pushed for a requirement that 65% of the product components come from Europe—and we succeeded,”
added Szczerba.
The agreement allows funding for defense products with a maximum of 35% of component costs coming from outside the EU. EDIP includes strong “European preference” criteria, meaning only projects that build cross-border cooperation and reduce dependency on third countries will qualify. The program introduces the concept of European Defence Projects of Common Interest, which must involve at least four EU member states to be eligible.
In contrast to the SAFE program, which was adopted earlier this year, EDIP is explicitly focused on serving the EU’s collective security needs rather than the agendas of individual member states. It also expands funding beyond defense companies to include innovation ecosystems involving research institutions and startups.
“The European funds we’re now allocating—whether through EDIP or Horizon Europe—will support not just industrial capacity but also research and development. This is a chance for our scientists to advance their work using EU grants,”
said Szczerba.
“In Poland, we have a strong public sector presence with PGZ, which manufactures military equipment and ammunition, but public-private partnerships will also be able to collaborate with universities and peer companies across Europe. These projects will be stronger with multinational consortia involving two or three member states.”
Of the €1.5 billion total, €300 million will go to Ukraine through a dedicated instrument to deepen bilateral cooperation—supporting the modernization and integration of Ukraine’s defense industry with EU systems, while benefiting from Ukrainian front-line experience, especially in drone defense.
MEPs emphasize that the €1.5 billion grant pool is only the beginning, as EDIP may be topped up with additional funds in the future. Lessons learned from its implementation will help shape future EU defense production initiatives beyond 2027.
“We have until the end of 2027, so these projects should already be in their planning phase. Initial agreements between consortia should be underway. I’m confident that’s already happening,”
concluded Szczerba.
