A breakthrough was achieved on Thursday in the European Parliament in negotiations on a support package for the European defence industry, with the unveiling of a proposal involving €1.5 billion, to be allocated mainly towards military equipment made in Europe.
Members of the European Parliament’s Industry and Defence committees, meeting in a joint session, voted 70 to 46, with 8 abstentions, in favour of the European Defence Industry Programme (EDIP).
This initiative, presented by the European Commission in March 2024, aims to boost the European defence industry’s capabilities and increase arms supplies to Ukraine.
The EDIP involves the allocation of €1.5 billion from the European budget up until 2027. The funds are intended not only to enhance military equipment production within Europe at a time of geopolitical uncertainty but also to encourage greater cooperation and coordination among European nations through joint purchases and projects.
MEPs emphasized that the funds should be directed towards military equipment in which at least 70% of the value of the final product is produced within the EU. This preference for European goods is politically sensitive because of the USA’s traditional role as a weapons supplier for many member States.
Hilde Vautmans (Renew/Open VLD) hailed the development as “a significant step forward” towards a “more competitive, autonomous, and resilient European defence industry.” She also welcomed the emphasis on SMEs’ involvement in the programme and measures for integrating Ukraine into the European defence market.
However, negotiations with member States about the EDIP still need to be finalised, as national governments have yet to reach consensus on this programme. They are also still deliberating on the larger SAFE programme that the Commission proposed earlier this year.
The SAFE initiative aims to offer up to €150 billion in favourable loans to member States for large-scale defence acquisitions. Although not involved in SAFE, MEPs would like to redirect around €20 billion from this programme to the EDIP, focusing more on innovation and bolstering the industrial base long-term.
Wouter Beke (EPP/CD&V) called on member States to act swiftly. “The importance of significant and prompt support for our defence industry cannot be underestimated,” he stressed. “Our request is clear: ensure sufficient funding and involve our businesses as much as possible to create a coherent European defence narrative.”