Defence research and development in the EU

In June 2018, the European Commission submitted a proposal for a regulation establishing the European Defence Fund (EDF). It concerns a new programme financed from the budget of the European Union. The proposal is part of a broader package of EU defence initiatives.

The Defence Fund consists of research and development packages. For both entities, preliminary steps were carried out to test the procedures before the start of the actual programme, which was launched in 2021. The Preparatory Action on Defence Research (PADR) was in progress in 2017-2019 and the European Defence Industrial Development Programme (EDIDP), which was part of the preliminary phase of the Defence Fund's capabilities, was implemented in 2019-2020.

European Defence Fund 2021–2027

The goal of the European Defence Fund is to increase the competitiveness, efficiency and innovation capacity of the European defence industry and research community. At the same time, the establishment of the Fund supports the objective to strengthen an open and integrated European single market.

The EDF consists of research and development packages, and the Fund can be used to support joint efforts to develop capabilities across Member States. The activities supported cover the entire research and development cycle of the defence material.

The total budget of the EDF is approximately EUR 8 billion (EUR 7.014 billion at 2018 prices) for the current multiannual financial framework period 2021-2027. About one-third of the budget has been allocated to research and about two-thirds to development measures. 

The Defence Fund may provide funding for activities in the defence research and development phase that deal with the development of new defence products, technologies and knowledge, or for updating existing products and technologies. Actions under the Fund should be carried out in cooperation between at least three actors located in three different EU Member States or associate countries. As a rule, the beneficiaries are industrial and research consortia. Funding is mainly granted through competitive applications and in accordance with annual work programmes. The level of EU funding to be granted depends on the nature of the action. Defence research can be fully funded, but development work requires additional national funding from Member States and/or industry. 

Proposals for work to be financed are assessed on the basis of the criteria set out in the EDF Regulation. The assessment highlights the relevance of the military capabilities to the needs of defence administrations, quality and efficiency, the potential for transformation, innovation and technological development, the competitiveness of the European defence industry, the EU's security and defence interests and the increased cross-border cooperation (including SMEs). As far as the development package is concerned, the life cycle of defence equipment and cooperation between Member States will also be taken into account in the assessment.