On March 5th, the European Commission unveiled the new European Defence Industrial Strategy (EDIS) aimed at bolstering the industrial pillar of European defence readiness.
The document outlines concrete actions to strengthen the European Defence Technological and Industrial Base (EDTIB) by 2035, including increasing joint acquisitions and enhancing industry responsiveness. The EU aims for member states to:
- Acquire at least 40% of defence equipment collaboratively by 2030;
- Ensure that by 2030, the value of intra-EU defence trade represents at least 35% of the EU defence market value;
- Gradually increase the percentage of EDTIB acquisitions to at least 50% of the budget by 2030 and 60% by 2035.
EDIS introduces a new European Defence Industry Programme (EDIP) to support the adaptation of the European industry. EDIP mobilizes €1.5 billion between 2025 and 2027 to enhance EDTIB competitiveness, with some applications potentially relevant to Portuguese companies, including:
- Expansion of the ongoing EDIRPA and ASAP programs until 2025, including the possibility of funding permanent capacity availability and civilian production line conversion;
- Establishment of a Fund to Accelerate defence Supply chains Transformation (FAST), facilitating SME access to financing through loans and/or equity participation;
- Support for industrialization of products resulting from cooperative R&D actions, such as the European Defence Fund;
- Creation of a European pilot mechanism for military sales, increasing awareness of EDTIB defence product availability and facilitating acquisition, notably through government-to-government purchases;
- Mutual recognition of licenses among member states;
- Strengthening EU defence industrial cooperation with Ukraine and supporting the development of its defence industrial base.
EDIP will also introduce a new legal framework to facilitate cooperation among member states in defence equipment development and acquisition, called the Structure for European Armament Programme (SEAP), complementing PESCO and ensuring defence equipment supply security.
In line with its mission to promote defence economy, idD Portugal Defence will disseminate the latest developments of EDIS, particularly those of interest to the national DTIB.
For further information, please refer to the First Defence Industrial Strategy
