Overview
- The Council’s adoption finalizes EDIP and establishes the EU’s first security‑of‑supply framework, unlocking €1.5 billion in 2025–2027 grants for defence industrial capacity.
- Within that envelope, €300 million forms a Ukraine Support Instrument to modernize Ukraine’s defence industry and foster its integration into the European defence ecosystem.
- EDIP funds joint procurement carried out by at least three participating countries, including support for establishing and maintaining defence industrial readiness pools.
- For Ukraine-targeted products, components from outside the EU and associated countries are capped at 35% of total component costs, with sourcing barred from non‑associated suppliers not aligned with EU security interests.
- The regulation is scheduled for signature on December 17 and will take effect the day after its publication in the Official Journal, with scope for voluntary budget increases by member states or third countries.