The European Union reached an agreement on Thursday after a long negotiation to establish a defense industry aid program in Europe.
Brussels – The Twenty-Seven have agreed on a program, called Edip, with an initial budget of 1.5 billion euros in the form of grants, which aims to promote the launch of joint defense projects during the period 2025-2027, according to a statement from the EU Council.
“This agreement represents a major step for the security of the European continent and the development of our defense industry,” said French MEP François-Xavier Bellamy (right), co-rapporteur of the project in the European Parliament.
Laborious discussions were necessary, as some states wanted to allow this program to also finance investments outside the EU, particularly from the United States.
A compromise was ultimately reached that limits the cost of components manufactured outside the EU or in certain partner countries like Norway to 35% of the total cost of the sought investment.
Arms purchases in the EU are made more than 60% outside the Union, primarily in the United States, and Brussels is now seeking to reduce this dependence to 45%. (October 16, 2025)
