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’)
BUDG-AD-771954
Committee on Budgets · Rapporteur: JeanMarc Germain
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The Committee on Budgets' opinion on the EDIP proposal assesses its budgetary aspects and proposes amendments to increase funding and ensure parliamentary oversight.¶¶ It calls for at least EUR 15 billion in additional Member State contributions for the EDTIB component and EUR 5 billion for the Ukraine Support Instrument, and for splitting the budget line.¶¶ It supports the Ukraine Support Instrument, FAST, and EDPCI, but urges the Commission to clarify financing sources and ensure transparency.¶¶¶
Committee position. The Committee on Budgets proposes amendments to increase EDIP funding through Member State contributions and to enhance transparency and parliamentary oversight.¶¶
Key points
- Underlines that EU budget investment in defence helps pool resources, close capability gaps, and deepen the single market for defence products.¶
- Recalls that a substantial increase and flexibility in EU defence spending is essential, combining grants, low-interest loans, and fiscal incentives.¶
- Supports EDIP's objective to increase defence industry readiness and bridge the funding gap left by ASAP and EDIRPA until 2027.¶
- Notes the programme envelope is constrained by MFF ceilings and the EUR 1.5 billion proposal is insufficient; calls for balanced industrial development and adjusted staffing.¶
- Supports the Ukraine Support Instrument for recovery and modernisation of Ukraine's defence industry, complementary to other support.¶
- Calls on the Commission to clarify financing for the USI, given immobilised Russian assets are earmarked for loan repayment, and recalls Parliament's proposal for a multibillion euro budget.¶
- Calls for higher MFF ceilings, new own resources, and adoption of the amended own resources proposal to fund defence needs.¶
- Calls on Member States to contribute at least EUR 15 billion for EDTIB and EUR 5 billion for USI, increasing the total envelope by at least EUR 20 billion.¶
- Welcomes FAST to leverage investments for SMEs and mid-caps, but asks for details on its rationale and impact.¶
- Supports EDPCI as an incentive for cross-border cooperation and joint procurement, with Parliament fully involved in decisions on long-term funding.¶
- Agrees to finance up to 100% of eligible costs in certain cases, derogating from the Financial Regulation, and accepts retroactivity for actions.¶¶
- Calls for splitting budget line 13.0801 to reflect the two objectives and ensure transparency and accountability.¶