Overview
- The Council’s adoption completes the legislative process for EDIP and unlocks €1.5 billion in 2025–2027 grants to strengthen European defense production.
- A €300 million Ukraine Support Instrument is dedicated to modernizing Ukraine’s defense industry and integrating it into the EU’s industrial ecosystem.
- For the Ukraine facility, combined content from outside the EU and associated countries, plus Ukrainian content, is capped at 35% of component costs, with parts from non‑associated suppliers that conflict with EU security interests barred.
- EDIP funds joint procurement by at least three countries, establishes defence industrial readiness pools, and supports industrial reinforcement to ramp up critical production.
- The regulation introduces the EU’s first security‑of‑supply framework for defense and permits voluntary budget top‑ups from member states or third countries.