Anatomy of a Losing Enterprise: The Eligibility Rules That Decide Access to EU Defence Funding
The European Union’s current trajectory toward strategic autonomy has fundamentally altered the criteria for industrial success, moving beyond mere technological merit to encompass strict geopolitical alignment. As the Union responds to the structural modifications in the security environment caused by Russia’s war of aggression, as noted in the EDIS, the definition of a “winning” company has become inextricably linked to its contribution to the European Defence Technological and Industrial Base (EDTIB). Conversely, a “losing” company is defined by its inability to adapt to these new norms of sovereignty and resilience. The introduction of the European Defence Industry Programme (EDIP) and the Security Action For Europe (SAFE) instrument creates a binary landscape where eligibility is no longer a formality but a strategic barrier. Companies that fail to internalize these regulations face a permanent exclusion from the multi-billion euro procurement and development cycles intended to modernize the European arsenal. This article explores the specific traits that lead to such disqualification, drawing from the latest regulatory frameworks. Understanding these pitfalls is essential for any industrial actor or investor aiming to survive in an era where “buying European” is a legal mandate rather than a suggestion.