EU allocates almost €1bn for defence, with some orders to be made in Ukraine

The European Commission is investing €910 million under the European Defence Fund (EDF) to create a strong and innovative European defence industry.

The European Commission stated that the investment is intended to address shortfalls in areas such as armed forces mobility and protection against unmanned aerial vehicles, with a focus on innovation and collaboration between European industry and academic institutions.

For the first time, Ukrainian defence companies will also be eligible to participate in EDF projects.

"The strengthened cooperation between the Ukrainian and European defence industries, builds on outreach efforts by the EU Defence Innovation Office in Kyiv to foster closer ties and to further integrate Ukraine into the European defence industrial base, reinforcing shared security and innovation objectives," the statement said.

With a budget of €7.3 billion for 2021-2027, the EDF is the EU's primary tool for supporting defence research and development. It fosters cooperation among companies of all sizes and research institutions across the EU and Norway.

This year, €45 million of this budget is earmarked to support disruptive technologies designed to significantly change or replace existing defence products, concepts and capabilities, often by making them simpler, more convenient, more affordable or more cost-effective. Nine of the selected projects aim to create disruptive technologies, such as the METASTEALTH project, which develops next-generation materials for stealth technologies.

Among the newly selected projects is Ukraine's Small UAS, which aims to develop advanced aerial systems powered by artificial intelligence. Other notable initiatives include ENGRTII, a collaboration of over 45 industrial and research partners working to develop a European next-generation helicopter by 2030, and EUROSWEEP, which seeks to create a joint autonomous European mine clearance system.

Following the selection of the winning proposals, the European Commission will begin negotiating grant agreements with the consortia, with the aim of signing them by the end of the year.

"The resulting projects will be instrumental in shaping the future of European defence, fostering a collaborative and innovative defence ecosystem, and enhancing the EU's strategic capabilities over the next few years," the statement said.

On 19 March, a White Paper was unveiled in Brussels, which shapes a new approach to defence and identifies the EU's investment needs. The White Paper presents solutions to address critical capability gaps and build a strong defence industrial base.

In addition to building up European defence capabilities, it also envisages meeting Ukraine's immediate needs on the battlefield.