The European Commission has put forward a groundbreaking plan to enhance defense production within the EU, proposing a staggering €1.5 billion investment to encourage joint military purchases among member states. In light of Russia’s invasion of Ukraine, the need for increased production has never been more urgent.
Economic nationalism has resulted in disjointed defense policies among the EU’s 27 member states, causing an estimated €22 billion in annual duplication costs. The European Defence Industry Program (EDIP) aims to combat this issue by providing funding from 2025 to 2027 to support joint procurement and bolster Europe’s defense-industrial capacity.
Under the EDIP, member states are urged to allocate at least 50% of their defense procurement budgets within the EU by 2030, with the goal increasing to 60% by 2035. This program will promote joint procurement, offer financial assistance, and establish a new legal framework for armament programs.
Additionally, the proposal includes plans for a fund to address supply chain bottlenecks and the creation of a defense-industrial readiness board to coordinate procurement strategies. Since the onset of the conflict in Ukraine, the EU has already increased its ammunition production capacity by 50%, supplying over 80,000 artillery shells per month to Ukraine.
The overarching objective of this initiative is to rapidly expand the EU’s defense-industrial base to demonstrate a strong stance against Russian President Vladimir Putin and align or exceed Russian defense production capabilities. The EDIP represents a significant step towards boosting Europe’s defense capabilities in the face of escalating global threats.
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