Sittings · Document

DRAFT OPINION (COM(2024)0150 – C100005/2024 – 2024/0061(COD)) 2025-03-19

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

Committee on Budgetary Control · Rapporteur: Eero Heinäluoma

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✦ In short · AI summary of this text, generated 4 Sept 2026

This draft opinion proposes amendments to the proposed regulation establishing the European Defence Industry Programme (EDIP), focusing on budgetary control, accountability, and transparency. It calls for diverse funding methods, clear objectives and award criteria, robust anti-fraud measures, and protection of the Union's financial interests, including for actions involving Ukraine. The amendments also address the lack of an ex ante impact assessment, the need for a long-term funding strategy, and the importance of a competitive defence market.

Committee position. The Committee on Budgetary Control proposes amendments to strengthen budgetary control, accountability, and transparency in the EDIP proposal, focusing on funding methods, anti-fraud measures, and Ukraine-specific provisions.

Key points

  1. Calls for diverse funding methods, including reimbursements of actual costs and simplified cost options, to mitigate risks of overcompensation and ensure robust ex post verifications.
  2. Urges clear definition of objectives, milestones, and award criteria in work programmes, focusing on projects with EU added value and a level playing field for suppliers.
  3. Demands inclusion of risk mitigation and anti-corruption provisions, particularly for actions with third countries like Ukraine, and a dedicated Risk Management Plan.
  4. Requires that OLAF, EPPO, and the Court of Auditors have access to audit documentation and on-site checks, including in Ukraine.
  5. Regrets the lack of a full ex ante impact assessment and calls for a long-term funding strategy beyond 2027, commensurate with challenges.
  6. Proposes that Member States and allies commit to supporting Ukraine militarily with no less than 0.25% of their GDP annually.
  7. Calls for measures to mobilise private investment, including revising the European Investment Bank's lending policy to remove restrictions on defence financing.
  8. Emphasises coherence with the EU Action Plan on Military Mobility 2.0 and other instruments, and filling funding gaps for dual-use infrastructure.
  9. Requires the Commission to establish accountability and anti-corruption provisions tailored to Ukraine, including eligibility rules, enhanced checks, and reporting obligations.
  10. Limits the derogation for urgent procurement to crisis states and requires written justification and information to Parliament, Council, and Court of Auditors.
  11. Mandates a framework agreement with Ukraine within six months of entry into force, and interim implementation reports by 30 June 2026 and annually thereafter.
  12. Requires a single ex post evaluation by December 2028 covering EDIP and other defence instruments, and an evaluation report by 30 June 2027 with specific sections.

Who is affected

  • The European Commission, which must implement the proposed funding methods, risk management, and reporting requirements.
  • Ukrainian authorities and entities, which face additional accountability and anti-corruption measures for EDIP-funded actions.
  • Defence suppliers, including SMEs, start-ups, and mid-caps, which are to benefit from a level playing field and open supply chains.
  • Member States, which are encouraged to increase defence financing and support Ukraine militarily.
  • EU institutions OLAF, EPPO, and the Court of Auditors, which gain enhanced access and audit rights.

Figures and deadlines

  • 0.25 percent of GDP annually for military support to Ukraine.
  • 35 % of eligible costs for activities referred to in Article 11(3).
  • 24 hours as from the award for delivery of goods or services under extreme urgency.
  • Six months after entry into force for concluding the framework agreement with Ukraine.
  • 30 June 2027 for the evaluation report.
  • 30 June 2026 and annually thereafter for interim implementation reports.
  • December 2028 for the ex post evaluation.

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