The European Commission is investing €910 million under the European Defence Fund (EDF) to create a strong and innovative European defence industry.  The investment is intended to address shortfalls in areas such as armed forces mobility and protection against unmanned aerial vehicles, with a focus on innovation and collaboration between European industry and academic institutions.

For the first time, Ukrainian defence companies will be eligible to participate in EDF projects. This enhanced cooperation reflects the EU’s ongoing efforts, led by the EU Defence Innovation Office in Kyiv, to deepen ties with Ukraine and more closely integrate its defence sector into the broader European industrial base, reinforcing shared goals in security and innovation.

These announced EDF investments will boost Europe's defence industry in line with the Commission's ReArm Europe Plan that aims to strengthen pan-European defence capabilities. It is also in line with the Joint White Paper on European Defence Readiness 2030, reflecting a new approach to defence and identifying investment needs

With a budget of €7.3 billion for 2021-2027, the EDF is the EU's primary tool for supporting defence research and development. It fosters cooperation among companies of all sizes and research institutions across the EU and Norway.

A dedicated €45 million from this year's investment supports disruptive technologies, designed to significantly alter or replace existing defence products, concepts and capabilities, often by introducing simplicity, convenience, accessibility, or cost-effectiveness. 

Among the newly selected projects is Ukraine's Small UAS, which aims to develop advanced aerial systems powered by artificial intelligence. Other notable initiatives include ENGRTII, a collaboration of over 45 industrial and research partners working to develop a European next-generation helicopter by 2030, and EUROSWEEP, which seeks to create a joint autonomous European mine clearance system.

The EDF also contributed, for the first time, to the objectives of the Strategic Technologies for Europe Platform (STEP), the Commission's initiative to boost the development and manufacturing of critical technologies in the EU. Fifteen call topics under this year’s EDF aligned with STEP priorities. All proposals that met the required quality criteria received a STEP Seal, a mark of excellence designed to help attract additional public and private investment. A full list of these selected projects will be published on the STEP Portal in the coming weeks.

Following the selection of the successful proposals, the Commission will now enter into the grant agreement preparation with the consortia, with the goal of signing agreements before the end of the year. The resulting projects will be instrumental in shaping the future of European defence, fostering a collaborative and innovative defence ecosystem, and enhancing the EU's strategic capabilities over the next few years.

B2EU closely monitors calls under the European Defence Fund and other major EU funding instruments. Keep an eye on our website and LinkedIn page to stay up to date with the latest news.