European Defence Industry Programme (EDIP) and supply framework

This new EU law establishes the European Defence Industry Programme (EDIP) to boost the EU's defence manufacturing capabilities and ensure a steady supply of defence products. It aims to make the European defence industry more resilient, innovative, and competitive, especially in light of increased security threats.

The programme will affect defence companies, including small and medium-sized enterprises (SMEs), across the EU and associated countries. It also includes measures to support Ukraine's defence industry, fostering cooperation and integration into the European defence market.

EDIP builds on previous initiatives like EDIRPA and ASAP, extending their logic until 2027. It introduces financial support for common procurement, industrial coordination, and investment in production capacities. New frameworks like the Structure for European Armament Programme (SEAP) and a Security of Supply regime are established to streamline cooperation and address potential shortages.

The law also introduces a 'Fund for the acceleration of defence supply chain transformation (FAST)' to support SMEs and mid-caps in accessing finance for defence manufacturing. It establishes mechanisms for mapping supply chains, identifying bottlenecks, and activating crisis states to ensure the timely availability of defence products.