Strengthening Europe's Security: Renew Europe Champions Adoption of Defence Industry Programme

Renew Europe welcomes the adoption of the European Defence Industry Programme (EDIP) by the Committees on Industry, Research & Energy (ITRE) and on Security & Defence (SEDE). It demonstrates that the European Parliament takes seriously the imperative of ensuring European’s Security, by strengthening the industrial base of European defence.

The inclusion into the regulation of a dedicated instrument to support the recovery, reconstruction and modernization of Ukraine’s Defence Technological Industrial Base was an absolute necessity. We welcome this instrument that will progressively integrate

Ukraine into the European defence market.

EDIP represents a major step forward for a more competitive, autonomous, and resilient European defence industry. By introducing targeted measures, the programme will help to develop the Defence Industry in a coordinated manner and reduce its fragmentation.

We now urge the Council to act swiftly and adopt its position to ensure a final agreement and on EDIP as soon as possible.

Renew has played a determining role by proposing an approach that was both realistic and ambitious:

• Adoption of a more pragmatic ratio for components (70% EU/30% non-EU)

• A stronger support for SMEs, thanks to a better financial leverage system

• A particular attention to the most threatened Member States, in particular those located on the border with Russia, via stockpiling mechanisms

• Introduction of the Enhanced Design Authority concept. The companies awarded will own a full authority on the definition, adaptation, integration and evolution – based on ownership of intellectual property – of the manufactured product.

• Proposal of a creative solution for supply crises through Article 42.7 (mutual defence clause)

• Protection of commercial interests by limiting the Commission's access to sensitive information

Nathalie Loiseau (Horizons, France), Renew coordinator for the Committee on Defence & Security and shadow rapporteur for SEDE on this file said:

“EDIP is a major achievement. EDIP aims to bridge the gap between short-term emergency initiatives and long-term efforts to ensure the EU’s defence industrial readiness. We achieved another major step: we have now a clear definition of what European preference means. The Council should now be able to agree to this eligibility criteria after months of discussions, now that the political groups in the European Parliament were able to find a solution in a few weeks.”

Our political group also managed to secure a specific tool to support the SMEs and mid-caps. There are more than 2500 small and medium companies in Europe working for the defence sector, representing dozen of thousands jobs. Proposed by Renew, a stronger budget for the new program FAST, dedicated to support SMEs along the supply chain for Defence production, will contribute to a more diversified Defence market.

Ivars Ijabs (Latvijas attīstībai, Latvia), Renew shadow rapporteur for the Industry, Research & Energy Committee said:

“While financial resources are crucial, solving the EU's complex issues, particularly in defence, requires more than just spending. We need a strategic shift towards incentivizing private investment, fostering a culture where its contribution is not only accepted but actively encouraged.”

As for the budget, Renew proposed a substantial increase. We however deplore that it was not possible to open the possibility for the Regions to allocate unused cohesion funds to defence industries on their territories. This is deeply regrettable.

Lucia Yar (Progresívne Slovensko, Slovakia), Renew coordinator for the Committee on Budgets and shadow rapporteur for BUDG on this file, said :

“EDIP is a major step toward a more capable and strategically autonomous European defence industrial base. It was vital to push for a stronger financial package, as the original Commission proposal was woefully inadequate given the current geopolitical environment. We’ve now secured a €20 billion boost, largely financed through the SAFE joint lending instrument under favorable conditions for Member States. I’m also pleased we established a dedicated Ukraine Support Instrument to help integrate Ukrainian innovation leaders into the broader European defence ecosystem, along with clear support for SMEs — key drivers of defence innovation and resilience.”