There is a breakthrough in the negotiations regarding the financing of the EU arms industry
For the European Defense Industry Program (EDIP) the regulation itself contains a relatively small amount, EUR 1.5 billion for 2025-2027. However, it is to become a model for future EU support programs for the defense sector in the next financial perspective and these programs will amount to much larger amounts. EDIP will be addressed to EU member states, associated countries and Ukraine.
The regulation will ultimately be approved by vote by the member states of the EU Council and the European Parliament.
An EU source said after the talks on Thursday, it was agreed that the cost of components originating from outside the EU and associated EEA countries should not exceed 35%. estimated cost of final product componentso. This is to provide support for a strengthened European defense industry.
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Therefore, the European Parliament's proposal that only products containing 70% could be co-financed from EU funds was rejected. components manufactured in the EU. This solution was unfavorable for Poland, because at the level of 70 percent the support could not be used, for example, to finance the construction of Polish Krab howitzers, because they contain over 30 percent. components purchased abroad.
— The EU EDIP program, with a budget of EUR 1.5 billion, approved! With criteria favorable to Poland, to Polish arms companies, for which we fought in the European Parliament – commented KO MEP Kamila Gasiuk-Pihowicz on Platform X.
In addition, the regulation establishes rules regarding, among others, joint defense purchases, strengthening the industrial base, creating a security of supply system in the EU or establishing new cooperation structures in the field of defense production that could use innovative financial instruments.
