The European Defence Industry Programme (EDIP) supports companies that contribute to a strong and modern European defence industry. With a budget of € 1.5 billion for the 2025–2027 period, the European Commission is encouraging the expansion of production capacity, the strengthening of the supply chain and the development of advanced technologies. In doing so, the programme helps make the European defence industry more competitive and responsive, and fosters closer cooperation within the EU.

Who is EDIP intended for?

EDIP is aimed at, among others, European companies that operate in or supply the defence industry. Companies with dual-use technologies and production capabilities may also be eligible. The scheme is particularly relevant for:

• Defence manufacturers and industrial suppliers;
• Companies that produce electronic components, materials or defence systems;
• Manufacturers looking to expand their production capacity or convert it to defence applications;
• Companies that contribute to strengthening Ukraine’s defence industry.

In addition, EDIP offers funding opportunities for public authorities and European partnerships, including for joint defence procurement and the development of strategic European defence projects.

Which projects are eligible?

Within the EDIP programme, three key funding instruments have been established, each with a specific investment theme and its own budget:

1. Industrial Reinforcement (IRA)
2. Common Procurement Actions
3. European Defence Projects of Common Interest (EDPCI)

Industrial Reinforcement (IRA)

IRA is the largest funding instrument within EDIP. With a budget of € 701.4 million, it focuses on increasing defence production in Europe and Ukraine. Companies from the EU and Norway, as well as EU–Ukraine partnerships, can make use of it.

• EU and Norway: funding for legal entities working to increase production capacity for energetic components, key electronic components, and defence platforms and end products. This strand has a budget of € 441.4 million. Funding can cover up to 35% of eligible costs per project, with the possibility of additional funding up to 50%.
• Ukraine Support Instrument (USI-IRA): aimed at strengthening Ukraine’s defence-industrial production capacity, shortening production lead times and fostering cross-border cooperation with European companies. This strand has a budget of € 260 million. Funding can cover up to 100% of eligible costs per project.

Common Procurement Actions (CPA)

To reduce fragmentation and improve interoperability, EDIP is investing € 240 million in the joint procurement of defence equipment. This includes counter-drone systems, air and missile defence, and land and naval combat systems. Consortia of contracting authorities from EU Member States and Norway, as well as designated procurement organisations, can respond to the call. As a company, you can be involved as a supplier. Funding can amount to up to 25% of the joint procurement, capped at € 20 million.

European Defence Projects of Common Interest (EDPCI)

€ 325 million has been made available for setting up and delivering specifically designated European defence projects of common interest. These projects must contribute to the development of military capabilities and the EU’s defence readiness. European countries that jointly develop and carry out strategic projects can make use of this funding.

Other EDIP funding opportunities

Alongside the three main funding instruments, EDIP includes a number of additional instruments. Not all of these are grant schemes: some provide access to investment capital, while others focus on cooperation, market access or strengthening the defence industry. These instruments are aimed at, among others, innovative SMEs, start-ups and European partnerships. Some notable instruments are:

Defence Innovation Action (BraveTechEU)

With a budget of € 35.3 million, BraveTechEU supports defence innovation by European and Ukrainian companies, with particular attention to start-ups and SMEs. The programme focuses on developing innovative solutions to urgent defence challenges and encourages cooperation between European and Ukrainian companies.

Defence Equity Facility 2.0 (FAST)

Through FAST, EDIP is making € 100 million available to improve access to risk capital for European defence companies. The funding targets start-ups, SMEs and small mid-caps looking to develop or scale up their defence-related production. Support is provided through investment funds and is not a direct grant.

Overview of relevant EDIP calls

Support with your EDIP project?

Are you looking to invest in defence-related production capacity, or would you like to explore what funding opportunities EDIP offers your organisation? Our specialists can help you assess your funding options and prepare a strong application. From the initial feasibility analysis through to drafting and submitting your grant proposal.

Curious about your opportunities under EDIP? Contact us via 088 495 20 00, info@hezelburcht.com or fill in the contact form below to arrange an introduction.