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On October 16, 2025, the European Parliament and Council reached a provisional agreement on the Regulation establishing the European Defence Industry Programme (EDIP or the "Program") and a framework of measures to ensure the timely availability and supply of defense products (the "EDIP Regulation"). The regulation will be signed on December 17, 2025 and enter into force on the day following that of its publication in the Official Journal of the European Union.
EDIP is the EU's first long-term legal framework, with a dedicated budget, for joint defense procurement, industrial ramp-up of the European Defence Technological and Industrial Base, and supply chain security. With defined eligibility criteria aimed at reducing strategic dependencies, EDIP is designed to make defense spending "more, together, and European."
In this spirit, the Program tightens the "European preference" principle through requirements on establishment, infrastructure location, control, and design authority. Narrow derogations and temporary arrangements (notably for ammunition and missiles) apply until 2033. Early legal and compliance planning—including whether the use of guarantees will be required and, if so, how these could be given—will be critical to secure access to public EU funding.
In addition, Ukraine is included in the EDIP, in particular for joint procurement through the Structure for European Armament Programme (SEAP) mechanism, and also with a specific support mechanism, which allows member states and EU institutions to provide financial support to Ukraine.
Overall, EDIP introduces several instruments that will define EU-supported defense procurement and industrial development ahead of the next Multiannual Financial Framework (2028–2034). As such, early understanding of its structure and requirements is essential. To that end, this article outlines the key features of the upcoming EDIP Regulation, focusing on:
- eligibility criteria
- budget and funding mechanisms
- joint procurement frameworks
- support for industrial production ramp-up
- security-of-supply regime.
We have prepared a client alert outlining the principal regulatory developments, potential business implications, and legal considerations for stakeholders.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.
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