The regulation, already informally agreed with the Council, will establish the first-ever European defence industry programme (EDIP). The scheme seeks to strengthen the European defence technological and industrial base, and boost European defence capabilities.

Of EDIP’s €1.5 billion budget, €300 million would go to the Ukraine Support Instrument. Co-legislators also agreed to create a Fund to Accelerate Defence Supply Chain Transformation (the FAST instrument) to total an indicative amount of at least €150 million through additional financial contributions.

During negotiations with Council, MEPs successfully pushed for an increase in the programme’s budget, by means of additional contributions from the Security Action for Europe instrument (SAFE). In addition, the programme allows member states to use the Recovery and Resilience Facility (RRF) to its full potential, by diverting and reallocating unspent RRF-backed funds to support EDIP projects.

MEPs also championed the…