Overview

• The European Commission’s EDIP is central to the EU’s €800bn defence overhaul aimed at boosting joint procurement and domestic arms production by 2030.
• France has spearheaded a proposal to confine EDIP funding to companies and projects sourcing at least 85% of components from within the EU, Norway or Ukraine.
• Under the 85% rule, British arms manufacturers would be largely ineligible for EU defence contracts despite a recent UK-EU security pact.
• The French stance could also cut support for factories producing US-origin systems such as Patriot surface-to-air missiles.
• Critics warn that the policy risks hampering European militaries’ existing reliance on American technology just as NATO urges a 400% expansion of air defence capabilities.