The EU adopts a comprehensive legal framework to strengthen the defense industry and guarantee supply in Europe

On December 29, 2025 the Official Journal published Regulation (EU) 2025/2643 of the European Parliament and of the Council of 16 December 2025 establishing the European Defence Industry Programme and a framework of measures to ensure the timely availability and supply of defense products (EDIP Regulation).

The EDIP Regulation establishes a comprehensive framework to strengthen the technological leadership, innovation, readiness, long-term competitiveness, resilience, integration, and preparedness of the European defense technological and industrial base (EDTIB) for the purpose of ensuring the timely availability and supply of defense products and supporting the recovery, reconstruction, and modernization of the Ukrainian defense technological and industrial base (Ukrainian DTIB).

It sets out a budget for actions in the 2025-2027 period, built around two main blocks:

• The European Defence Industry Programme, with a 1.2 billion budget (although it can receive additional contributions).
• The Ukraine Support Instrument, with a €300 million budget (which can be increased with further contributions).

In both cases, the funding will cover only the costs necessary to pursue the objectives of the program and the instrument, and the costs of purchasing and maintaining defense products for military or defense purposes are expressly excluded.

The regulation also addresses other action mechanisms, and establishes their legal framework: (i) European Defence Projects of Common Interest; (ii) a European Military Sales Mechanism; (iii) the Structures for European Armament Programmes (SEAPs), including (iv) a detailed set of measures to anticipate and respond to possible supply crises in the internal market for defense products.

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