A new EU defense program has been agreed upon by the Danish EU Presidency, the EU Parliament, and the EU Commission. The agreement aims to bolster the European defense industry with €1.5 billion in support until the end of 2027 through the European Defence Industry Programme (EDIP).

Defense Minister Troels Lund Poulsen stated that the agreement marks a crucial step in fostering a stronger and more competitive European defense sector.

The funds will support member states in the development, production, acquisition, and procurement of defense equipment. A portion of the funding, approximately DKK 2.2 billion, will be dedicated to defense industrial cooperation with Ukraine.

Poulsen highlighted Ukraine’s advanced technological development, particularly in drone combat, and emphasized the potential for Europe to learn from Ukraine’s unique collaboration between defense, industry, and research.

The agreement follows the EU Commission’s proposal for a roadmap for Europe’s rearmament towards 2030, which is expected to be approved at the upcoming EU summit in Brussels. A key component of the roadmap is increased cooperation among EU countries on joint procurement in the defense industry.

Poulsen views the agreement as a “milestone” in the EU’s objective to achieve European self-sufficiency in defense by 2030.

Denmark, holding the EU Presidency since July 1, has played a leading role in the final negotiations.

The Defense Industry Program now requires formal approval from EU countries and the European Parliament. EU countries may approve the agreement as early as Friday, with the aim of ensuring its swift implementation.