EU funding for defence
The EU is increasing its defence spending through several initiatives and instruments within the EU budget.
How does the EU fund defence?
The EU funds defence through different instruments within its budget to support research, development, production, procurement and infrastructure projects.
While security and defence remain national competences, the EU complements and amplifies member states’ individual efforts, both by enabling their increased national defence spending and by using EU budget resources.
The main instrument for defence financing is the European Defence Fund, launched in 2021 to support research and development in defence. The EU also finances military mobility projects under the Connecting Europe Facility, helping ensure infrastructure is fit for both civilian and military use.
In the wake of a radically changed security situation since the start Russia's war of aggression against Ukraine in 2022, the EU has increased its defence expenditure within the EU budget.
In this context, the EU adopted:
- two temporary instruments to support ammunition production and reinforce the European defence industry through common procurement in 2023
- the European defence industry programme in 2025
The EU is currently working on simplifying existing rules and procedures to reduce bottlenecks in EU legislation in the defence sector and speed up access to EU funds.
European defence fund
The European defence fund (EDF) entered into force on 29 April 2021.
The fund initially had a total budget of nearly €7.3 billion in current prices under the multiannual financial framework (MFF) 2021-2027, allocated to funding collaborative defence research and collaborative capability development projects.
With the mid-term revision of the MFF, the EDF’s budget was increased by €1.5 billion for projects under the strategic technologies for Europe platform.
Complementing and amplifying member states’ efforts, the fund promotes cooperation between companies and research actors of all sizes and geographic origins in the EU on research and development and interoperable defence technology and equipment.
The objective of the fund is to:
- build a competitive, innovative and efficient European defence industry
- promote cross-border cooperation and create a more integrated defence market in the EU
- boost joint research and development of defence products and technologies
- contribute to the EU's strategic autonomy
European defence industry programme
On 8 December 2025, the Council adopted the European defence industry programme (EDIP).
Through EDIP, the EU is providing €1.5 billion in the form of grants to boost Europe's defence readiness in the period 2025-2027. It is also supporting Ukraine through a dedicated instrument worth €300 million.
The programme implements several of the measures proposed in the European defence industrial strategy (EDIS), presented by the European Commission and the High Representative for Foreign Affairs and Security Policy in March 2024.
European defence industry programme
Programme for agile and rapid defence innovation
On 15 July 2026, the Council and the European Parliament reached a political agreement on the proposal to establish a new €115 million programme for agile and rapid defence innovation (AGILE).
AGILE aims to provide rapid, agile and targeted financial support for small and medium-sized enterprises (SMEs), including start-ups and scale-ups. It will focus in particular on supporting the development and testing of emerging and disruptive defence products, including the adaptation of civil technologies for defence applications.
The new programme is expected to be operational from early 2027.
Military mobility
The EU finances military mobility projects under the Connecting Europe Facility. With a budget of €1.74 billion, these projects improve military mobility corridors to allow armed forces to move faster and better across borders and ensure that the infrastructure is adapted for both civilian and defence purposes.
Once the mid-term review of the 2021-2027 cohesion policy is adopted, member states will be able to transfer funds from their cohesion policy programmes to military mobility initiatives if they so wish.
Some examples of projects under this framework include the construction and upgrade of railways, the upgrade of road sections of the network and the enhancement of dual-use infrastructure in maritime ports, airports and inland waterways.
In November 2025, the European Commission and the High Representative for Foreign Affairs and Security Policy presented the military mobility package, aimed at ensuring the seamless movement of troops, equipment and military assets across the EU.
The package consists of a regulation proposal and a joint communication. On 17 June 2026, the Council approved its mandate for negotiations with the European Parliament on the regulation.
Ammunition production
In March 2023, the Council agreed on a three-track plan to speed up the delivery and joint procurement of ammunition and missiles for Ukraine. The first two tracks, worth €1 billion each, are financed through the European Peace Facility (an instrument funded directly by member states).
The EU implemented the third track of the plan, the regulation on supporting ammunition production (ASAP), on 20 July 2023. This temporary instrument is financed through the EU budget.
With a budget of €500 million, the programme financed projects to stimulate the production of explosives, powder, shells, missiles and testing and reconditioning certification.
Through ASAP, the EU provided financial support to reinforce the EU’s industrial production capacities for ground-to-ground and artillery ammunition, as well as for missiles.
Common defence procurement
On 18 October 2023, the regulation establishing a temporary instrument for the reinforcement of the European defence industry through common procurement (EDIRPA) entered into force.
This instrument incentivises member states to procure defence products jointly and has a budget of €310 million, of which €300 million is from the EU and €10 million from Norway. It is financed through the EU budget. 20 EU countries were involved in projects under EDIRPA
The instrument also helps increase the economies of scale of member states’ procurement procedures, thereby making the European defence technological and industrial base more competitive and efficient.
The EU is also supporting defence investment through common procurement with the Security Action for Europe (SAFE) instrument, which provides loans worth up to €150 billion to member states that request them.
SAFE, adopted on 27 May 2025, is funded by the European Union through its borrowing capacity, specifically by issuing EU-bonds.
Common procurement is also one of the pillars of European defence industry programme (EDIP), agreed by the Council and the European Parliament on 16 October 2025.
Common defence procurement
Simplifying rules and procedures in the defence sector
In the context of the ReArm Europe plan/Readiness 2030, the European Commission has proposed:
- measures to simplify the legal and administrative framework in the defence sector (defence readiness omnibus)
- new targeted amendments to existing EU funding programmes
Defence readiness omnibus
On 10 June 2026, the Council presidency and European Parliament negotiators reached a provisional agreement on new legislation that will simplify security and defence procurement, facilitate defence investments and support the defence industry.
The simplified legislation aims to remove administrative delays in procurement, accelerate permitting-granting procedures, facilitate transfers of defence-related products within the EU and strengthen intra-EU cooperation.
This agreement will give member states and industry a clearer path to act quickly and will reinforce Europe’s defence capacity.
- Simplification: Council and Parliament strike deal to boost EU defence industry and readiness (press release, 10 June 2026)
- Simplification of EU rules
Amendments to existing EU funding programmes
On 18 December 2025, the Council adopted a regulation to incentivise defence-related investments under the EU budget. These measures implement the ReArm Europe plan / Readiness 2030 and aim at facilitating faster, more flexible and coordinated investments in the European defence technological and industrial base.
The new rules amend five existing EU funding programmes:
- the Digital Europe Programme
- Horizon Europe
- the European Defence Fund
- the Connecting Europe Facility
- the Strategic Technologies for Europe Platform
In addition, the agreement includes a landmark decision to associate Ukraine to the European defence fund.
See also
European defence readiness
National escape clause for defence expenditure
What is Security Action for Europe (SAFE)?
Last review: 15 July 2026