The European Defence Industry Programme (EDIP): Strategic Reorientation through Regulation and Investment
The European Defence Industry Programme (EDIP) marks a turning point in the EU’s strategic industrial policy, offering a €1.5 billion framework to accelerate defence procurement, boost industrial resilience, and deepen cross-border cooperation. Designed to reinforce the European Defence Technological and Industrial Base (EDTIB), EDIP introduces strict “Buy European” rules—requiring 65% EU content—to prioritize internal value chains and reduce strategic dependencies. The programme favours companies with EU-based design authority, robust IP control, and modular manufacturing capabilities. It also provides co-financing for capacity expansion, SME integration, and fast-track procurement consortia, creating an attractive landscape for venture capital, institutional investors, and strategic acquirers. With VAT exemptions, supply chain security provisions, and long-term planning mechanisms, EDIP reduces regulatory and market uncertainty. For investors seeking scalable, resilient, and policy-aligned defence assets, EDIP presents a historic opportunity to enter a protected, growth-oriented European market backed by political commitment and structural demand.