Parliament talks next for EU defence industry programme

Negotiations with the Parliament over the €1.5 billion European Defence Industrial Plan (EDIP) are expected to begin soon, after EU ambassadors finally endorsed a revised version.

The 184-page document, seen by Euractiv before its official publication, remained largely unchanged from last week’s compromise, when EU countries agreed to largely keep strict eligibility rules favouring EU-based arms manufacturers, while carving out exceptions for foreign producers of missiles and ammunition.

A key part of the text would give the Commission the power to monitor the supply chain and prioritise orders for critically needed defence.

Brussels would also be able to request information from industries that produce "crisis-relevant" products. Companies that misreport supply chain data or fail to comply with priority orders would be subject to fines of up to €100,000 – down from the Commission’s original proposal of €300,000.

EU nears deal on defence industry plan after foreign arms stalemate broken

Sources tell Euractiv that EU countries have found compromise on the Commission's major defence industry initiative.

The Commission pitched EDIP in March 2024 as a way to support the expansion of Europe's defence industry by injecting cash into joint military procurement projects and providing subsidies for the production of defence equipment.

The Polish presidency will start negotiations with Parliament on Monday, a source close to the file told Euractiv – just one day before Warsaw hands the rotating Council presidency to Denmark.

(bts, mm)