From Dependence to Resilience: EDIP to Strengthen Europe’s Defense Base
Adopted on October 16, 2025, the European Defense Industry Program (EDIP) embodies the concrete implementation of European preference in defense. With a budget of €1.5 billion for the period 2025–2027, it becomes a permanent tool to support the European Defense Industrial and Technological Base (EDITB), designed to coordinate the production of military equipment and strengthen cooperation between Member States.
With the EDIP program, the European Union is taking a decisive step toward strategic autonomy. Behind this “European preference,” Brussels is establishing a new legal and financial framework to support the continent's manufacturers and strengthen the common defense technology base. The text sets a strict threshold: at least 65% of the components of a funded product must come from the European Union. This principle of European preference aims to reduce dependence on third-party suppliers, particularly American and Israeli ones, while encouraging the relocation of certain critical supply chains, from ammunition to semiconductors. “The EDIP seeks to bridge the gap between emergency measures and a long-term structural approach,” emphasizes the Council of the EU.
Since the war in Ukraine, Europe has discovered the extent of its dependence on non-European weapons systems—whether the F-35, Patriot PAC-3, or HIMARS. EDIP aims to correct this imbalance by financing the ramp-up of joint industrial programs. €300 million will be allocated to the Ukraine Support Instrument (USI), which is designed to accelerate the production of compatible weapons among member states.
The Commission also wants to encourage joint procurement. Following the experience of the EDIRPA plan, Brussels intends to institutionalize pooling to reduce unit costs and strengthen intra-European interoperability. According to the Commission, the fragmentation of European military procurement generates up to €25 billion in annual losses. The EDIP is intended to be the first step in European capability planning, complementary to but not competing with NATO.
European preference is accompanied by a desire to harmonize logistics chains and weapons maintenance. Several pilot projects are already being considered: production of 155 mm shells, manufacture of propellants for surface-to-air missiles, revival of heavy armored vehicle maintenance capabilities, and creation of a European tactical drone industry. These initiatives should reduce delivery times, improve operational availability, and strengthen the responsiveness of European armies in the event of a crisis.
For military leaders, the challenge is as much about capability as it is about doctrine: having a coherent industrial base will accelerate the standardization of equipment, which is essential for the effectiveness of forces deployed jointly under the European or NATO banner. Ultimately, Brussels hopes to see the emergence of a war defense industrial base (DIB) capable of mass production without relying on critical imports.
Major groups such as Thales, Leonardo, KNDS, and Airbus Defense & Space are among the first potential beneficiaries. The European preference clause could consolidate their positions in the face of American and Israeli competition. “This policy will promote industrial cooperation and the maintenance of critical skills,” said Safran's CEO, quoted by Euractiv.
In Israel, concern about European preference is growing: according to IsraelValley, the Rafael and Elbit Systems groups fear a reduction in their market share on the Old Continent, estimated at more than €50 billion per year. However, the Council's text leaves a 35% margin for non-European components in order to maintain strategic partnerships with allies outside the EU.
The European Union now has a clear ambition: to produce, finance, and equip its forces without relying on external suppliers. But European preference alone will not be enough to guarantee operational autonomy. Europe remains dependent on American players in sensitive areas such as electronic components, infrared sensors, thrusters, and missile engines.
The success of EDIP and European preference will depend on the coordination of military needs among member states and the ability to quickly absorb subsidies. In this regard, future joint orders for 155 mm shells and European MALE drones will be a key test. “This agreement is a major step forward for the security of the continent and the development of our defense industry,” said François-Xavier Bellamy, rapporteur for the text in the European Parliament. Europe finally seems determined to transform its industrial base into a tool of power. The challenge now will be to turn it into a military instrument that matches its stated ambitions.
