EU Council approves €1.5 billion defence program, boosting support for Moldova and Ukraine
On December 8, the Council of the European Union approved the European Defence Industrial Programme (EDIP), which is a €1.5 billion initiative aimed at enhancing the European defence industry's capacity to respond effectively from 2025 to 2027. Alongside increased support for Ukraine, the programme also allocates additional funding for the Republic of Moldova as part of a joint procurement effort.
The adoption of the European Defence Industry Programme (EDIP) by the EU Council marks the final step in the legislative process and paves the way for the immediate implementation of the most ambitious European initiative aimed at modernizing the European Defence Technological and Industrial Base (EDTIB).
The program's goals are to enhance the military readiness of Member States, increase the availability of defense products, and reduce the EU’s strategic dependencies.
Republic of Moldova included in additional funding scheme
Out of the total budget, €300 million is allocated to the Instrument for Support to Ukraine, which aims to modernize its defense industry and integrate it into the European ecosystem.
Additionally, the regulation increases the funding rate for joint procurement, covering additional equipment volumes intended for both Ukraine and the Republic of Moldova. This adjustment is motivated by their security situations in light of Russia's conflict.
EDIP Program will cover:
- Joint procurement carried out by at least three states, including two EU members;
- Increasing production capacities for critical equipment;
- European Defence Projects of Common Interest, developed collaboratively by Member States;
- Support measures, including promoting interoperability and facilitating access for SMEs to the defense market.
To strengthen the European supply chain, the new rules stipulate that up to 35% of the total cost of components for a military product may be sourced from outside the EU and EEA States. However, no components can be purchased from countries that are contrary to the EU's security interests.
Moreover, the EDIP introduces the first European framework for the security of defense equipment supply, aimed at enhancing the European Union's resilience during crises.
Under specific conditions—such as procurement intended to reduce strategic dependencies or enhance cooperation between states—the European financing rate may increase to 25% of the contract value. This same upper limit applies to states that boost their defense spending by more than 30%.
The EDIP Regulation will be signed on 17 December 2025 and will take effect the day after its publication in the Official Journal of the EU.
The European Parliament gave its final approval on 25 November, and the EU Council’s vote on 8 December confirms the official launch of the program.
