The European Defence Industry Programme (EDIP) is a €1.5 billion initiative designed to fund products that include at least 70% of components produced within the EU or associated countries such as Ukraine and Norway. MEPs in the industry and defence parliamentary committees agreed on this threshold in a vote, with 70 votes in favor, 46 against, and eight abstentions. The aim is to reduce the EU’s heavy dependencies in the defense sector and promote a sovereign Europe that is stronger and safer. The EU Commission initially proposed a 65% ratio, but MEPs decided on a higher threshold despite internal disagreements within the European People’s Party.
From February 2022 to June 2023, 78% of member states’ defense acquisitions originated outside the EU. This high dependency on external actors raises concerns about security and the need for European cooperation in the defense sector. A study by the European Parliament Research Service estimates that increased European cooperation could save between €24.5 billion and €75.5 billion annually. MEPs in favor of the 70% threshold believe that fostering joint procurement and building common European defense capabilities will strengthen the EU’s strategic and efficient defense capabilities.
MEPs also called for greater funding for the programme and emphasized the need to strengthen cooperation and procurement with the Ukrainian defense industry. This would not only contribute to enhancing European defense capabilities but also support Ukraine in the face of security challenges in the region. The Parliament’s position on the EDIP must still be approved by the full plenary during the next session in Strasbourg. The Council, representing the member states, also needs to adopt its position before negotiations on the final text can begin, as disagreements persist over the eligibility criteria.
Despite concerns from some MEPs that the 70-30% ratio could prevent certain countries from accessing EU funds, a large majority of MEPs from various political groups supported the move to reduce Europe’s reliance on external sources for defense products. The aim is to encourage more European purchases, boost production, reduce fragmentation, and address critical capability gaps in the defense industry. MEPs believe that a stronger, strategic, efficient, and united European defense industry is essential for ensuring the security of all European countries, not just a few of the strongest players in the field.
In conclusion, the decision to set a 70% threshold for EDIP funding highlights the European Parliament’s commitment to promoting a sovereign and self-reliant Europe in the defense sector. By incentivizing EU member states to increase joint procurement and build common European defense capabilities, MEPs hope to strengthen the EU’s security and reduce its dependencies on external actors. The upcoming negotiations between the Parliament and the Council will be crucial in determining the final text of the programme and ensuring that it aligns with the goals of enhancing European defense capabilities and fostering cooperation with partner countries like Ukraine.
