EU approves €1.5 billion program for defense development in Europe and Ukraine

The European Commission has approved a 1.5 billion euro work program for the development of the defense industry in Ukraine and Europe, writes UNN.

As noted, "the European Commission today approved a 1.5 billion euro work program within the European Defence Industry Programme (EDIP) to improve and modernize the European defense industry, increase production capacities, and ensure technological progress and resilience."

Over 700 million euros, as indicated, will support increased production of key defense components and products, including anti-drone systems, missiles, and ammunition. "This includes 260 million euros within the EDIP's Ukraine Support Instrument (USI) to help rebuild and modernize Ukraine's defense technological and industrial base (DTIB) by investing in joint projects that increase production capacities in both Ukraine and Europe," the statement reads.

European Defence Projects of Common Interest (EDPCI) will receive 325 million euros to launch and implement ambitious joint industrial projects. These projects, as reported, are aimed at a wider range within the EU and are also open to Norway and Ukraine.

"To reduce fragmentation and increase efficiency, EDIP will finance 240 million euros for joint procurement of defense equipment, including anti-drone systems, air and missile defense systems, as well as ground and naval combat systems, by member states and Norway," the European Commission noted. Consortia of customers, as indicated, can apply for funding, with grants of up to 20 million euros available for each project.

Defense startups, including small and medium-sized enterprises (SMEs) and small mid-cap companies, as noted, will receive 100 million euros in equity support through the Fund for Accelerating the Transformation of Defense Supply Chains (FAST).

"Within the BraveTech EU initiative, a new defense innovation program will receive an additional 35.3 million euros from EDIP USI, supporting both Ukrainian and European industry, particularly startups and SMEs, stimulating innovation to address urgent challenges faced by Ukraine's armed forces, and enhancing the competitiveness of the European defense industry," the statement said.