EU Launches €300m Initiative for Joint Defence Procurement

The EU has taken an unprecedented step to enhance defence readiness by approving financial backing for common procurement projects among Member States.

Through the European Defence Industry Reinforcement through Common Procurement Instrument (EDIRPA), five cross-border initiatives have been selected to receive €60m (US$62m) each, totalling €300m (US$314m) in funding.

These projects represent a significant shift towards coordinated European defence efforts, addressing critical needs heightened by Russia’s aggression against Ukraine.

This short-term programme, running until 2025, incentivises Member States and Norway to procure defence products collectively.

By pooling resources, the initiative aims to address urgent capability gaps while improving interoperability across national armed forces. Aggregated demand provides predictability, encouraging manufacturers to scale up production to meet Europe’s defence needs.

The selected projects focus on three key areas identified as critical:

1. Ammunition: Stockpiles are replenished with essential artillery rounds.
2. Air and missile defence: Enhancing protection against airborne threats.
3. Platforms and legacy system replacements: Introducing advanced equipment to replace outdated systems.

By setting these priorities, the EU is directly responding to calls for stronger collective defence, ensuring the alignment of efforts across Member States.

A new era of economies of scale

EDIRPA does not fund defence products outright. Instead, it offsets the administrative costs of common procurement, enabling Member States to pool their efforts effectively. This approach not only delivers better value for money but also drives significant investment in the defence sector.

The programme’s US€300m (US$314m) budget has catalysed procurement projects valued at more than €11bn (US$11.5bn), demonstrating its high-impact leverage.

These projects include:

• Air and Missile Defence: The MISTRAL project involves nine nations acquiring very short-range systems, while the JAMIE initiative focuses on IRIS-T SLM medium-range systems for six Member States. Both projects strengthen Europe’s capability to defend against aircraft, drones, and other aerial threats.

• Modern Armoured Vehicles: Four Member States are collaborating to procure the Common Armoured Vehicle System (CAVS), a troop transport carrier offering enhanced mobility and performance.

• Ammunition Procurement: Two initiatives are addressing artillery needs, with Member States committing to joint purchases of 155mm artillery shells.

Such efforts are transforming how Europe approaches defence procurement, with interoperability and collaboration at the core.

Larger, collective contracts give manufacturers clarity and encourage them to align production capabilities with EU defence requirements.

A lasting impact

EDIRPA’s success has already prompted discussions about extending the programme.

The European Defence Industry Programme (EDIP), proposed in March 2024, aims to build on EDIRPA’s framework, enabling continued collaboration beyond 2025. This will ensure the aggregation of demand and further strengthen Europe’s defence capabilities.

With its inaugural funding cycle, EDIRPA demonstrates the value of cooperation in tackling shared challenges.

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