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REPORT (COM(2024)0150 – C10-0005/2024 – 2024/0061(COD))

On the proposal for a regulation of the European Parliament and of the Council establishing the European Defence Industry Programme and a framework of measures to ensure the timely availability and supply of defence products (‘EDIP’)

A-10-2025-0084

Committee on Security and Defence Committee on Industry, Research and Energy · Rapporteur: Raphaël Glucksmann, FrançoisXavier Bellamy

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Written by a language model from the full text only; every figure comes from the text. The paragraph links open the paragraph a statement rests on — check the text itself before relying on it.

Parliament's amended version of the proposed regulation establishing the European Defence Industry Programme (EDIP) and a framework to ensure timely availability and supply of defence products, covering the EDTIB, Ukraine, European Defence Projects of Common Interest, a Military Sales Mechanism, SEAP, and security of supply measures. It sets a financial envelope of EUR 1 500 million from the EU budget and at least EUR 15 000 million in Member State contributions for the EDTIB, and at least EUR 5 000 million in Member State contributions for the Ukraine Support Instrument. It establishes FAST, a blending operation to support SMEs and small mid-caps, and creates a Defence Industrial Readiness Board to oversee security of supply measures, including crisis states and priority-rated orders. It lays down eligibility criteria, including that recipients must be established in the EU or associated countries, not controlled by non-associated third countries, and that at least 70% of component costs must originate in the EU or associated countries. It provides for a Structure for European Armament Programme (SEAP) to aggregate demand and manage life-cycle of defence products, and for a European Military Sales Mechanism with a catalogue and defence industrial readiness pools.

Committee position. The committee report proposes amendments to the Commission proposal, including increased funding with Member State contributions, new mechanisms like FAST and SEAP, and strengthened security of supply measures.

Key points

  1. The Programme aims to enhance the EDTIB's competitiveness, readiness, and resilience, and to support Ukraine's DTIB recovery and modernisation.
  2. The financial envelope includes EUR 1 500 million from the EU budget and at least EUR 15 000 million in additional Member State contributions for EDTIB actions.
  3. The Ukraine Support Instrument has a budget of at least EUR 5 000 million in additional Member State contributions, which may come from SAFE or other national sources.
  4. Eligible recipients must be established in the EU or associated countries, not controlled by non-associated third countries, and their infrastructure must be located in the EU or associated countries.
  5. Derogations from control requirements are possible with guarantees approved by the Member State of establishment, ensuring security and defence interests are not contravened.
  6. Actions must have at least 70% of component costs originating in the EU or associated countries, and design authority must be an eligible entity.
  7. Common procurement actions require a consortium of at least four eligible entities from at least four different Member States or associated countries.
  8. Funding rates: common procurement actions 15-25%, industrial reinforcement actions 25-40%, European Defence Projects of Common Interest up to 45%, and FAST gets EUR 225 million.
  9. FAST is a blending operation offering debt and/or equity support to SMEs and small mid-caps to increase defence manufacturing capacities.
  10. European Defence Projects of Common Interest are identified by the Council by qualified majority, and must involve at least six Member States or four highly exposed Member States.
  11. A SEAP can be set up by at least three countries including at least two Member States, and has legal personality and liability for its debts.
  12. Security of supply measures include mapping, monitoring, stress tests, and crisis states (supply and security) with priority-rated orders and fines for non-compliance.

Who is affected

  • Defence manufacturers and suppliers in the EU and associated countries, including SMEs and mid-caps, which can receive funding and must meet eligibility criteria.
  • Ukrainian defence industry entities, which can receive support under the Ukraine Support Instrument and participate in common procurement and projects.
  • Member States, which must provide additional contributions and may participate in SEAPs, common procurement, and crisis measures.
  • The European Defence Agency, which manages defence industrial readiness pools and supports the Commission in mapping and monitoring.
  • Undertakings in the defence supply chain, which may be subject to information requests and priority-rated orders during crisis states.

Figures and deadlines

  • EUR 1 500 million from the EU budget for the EDTIB component.
  • At least EUR 15 000 million in additional Member State contributions for the EDTIB.
  • At least EUR 5 000 million in additional Member State contributions for the Ukraine Support Instrument.
  • 70% minimum share of component costs originating in the EU or associated countries.
  • EUR 225 million for FAST.
  • Funding rates: 15-25% for common procurement, 25-40% for industrial reinforcement, up to 45% for European Defence Projects of Common Interest.
  • At least six Member States or four highly exposed Member States for European Defence Projects of Common Interest.
  • Fines up to 0.5% of net annual worldwide turnover for non-compliance with information requests or priority-rated orders.

Legal basis: Articles 114(1), 173(3), 212(2) and 322(1) of the Treaty on the Functioning of the European Union