The European Commission has approved a major new round of funding for European defence projects, allocating €1.07bn to 57 initiatives under the European Defence Fund (EDF).
The investment follows the evaluation of the 2025 EDF calls and is intended to reinforce the EU’s long-term defence strategy while accelerating technological development across the bloc.
This latest tranche of funding aligns with the Defence Readiness Roadmap 2030 and supports four flagship programmes: the European Drone Defence Initiative, Eastern Flank Watch, the European Air Shield, and the European Space Shield.
Together, these efforts form the backbone of the EU’s push to strengthen its strategic autonomy and defence capabilities.
Record interest signals growing momentum
The 2025 EDF calls drew unprecedented interest, with 410 proposals submitted – an increase of 37% compared to the previous year.
This surge highlights growing engagement across Europe’s defence and research sectors, as well as rising demand for collaborative defence projects.
Of the €1.07bn total, €675m has been earmarked for 32 capability development projects, while €332m will fund 25 research initiatives.
These investments reflect a balanced approach between advancing immediate operational capabilities and supporting longer-term innovation.
Focus on advanced defence technologies
The selected defence projects span a wide range of critical areas, including artificial intelligence (AI), cyber defence, drones, and counter-drone systems.
The aim is to ensure Europe remains competitive in cutting-edge defence technologies while addressing evolving security challenges.
More than 15 of the funded projects directly contribute to the EU’s four flagship programmes. One example is Project AETHER, which focuses on propulsion and thermal management technologies to support drone defence systems.
In parallel, several cross-cutting initiatives will enhance capabilities in sensors, digital infrastructure, and cyber resilience.
Expanding cooperation with Ukraine
A notable feature of this funding round is the EU’s deepening collaboration with Ukraine’s defence sector.
Supported by the EU Defence Innovation Office in Kyiv, this partnership is designed to integrate Ukrainian expertise into Europe’s broader industrial base.
Project STRATUS stands out in this regard. The initiative will develop an AI-driven cyber defence system tailored for drone swarms, with participation from a Ukrainian subcontractor.
This involvement brings direct operational insights from active conflict environments into European defence projects, strengthening their real-world applicability.
Opening doors for start-ups and SMEs
The EDF continues to prioritise inclusivity within the European defence ecosystem, particularly by encouraging participation from smaller firms.
Several projects focused on scalable drone technologies will introduce sub-calls aimed at start-ups and small and medium-sized enterprises (SMEs).
Through these sub-calls, smaller players can access funding of up to €60,000 to contribute innovative solutions. This mechanism is designed to lower barriers to entry and attract new talent to defence projects, including participants without prior sector experience.
Ukrainian entities are also eligible to apply, further broadening the programme’s reach.
Strong participation across Europe
The selected projects involve 634 entities from 26 EU Member States and Norway, underscoring the collaborative nature of the EDF.
SMEs play a central role, accounting for more than 38% of participants and receiving over 21% of the allocated funding.
This distribution reflects a deliberate effort to diversify the defence industrial base while fostering innovation across organisations of varying sizes.
With the selection phase complete, the European Commission will now move into grant agreement preparations with the chosen consortia.
The goal is to finalise and sign agreements before the end of the year, enabling work on these defence projects to begin without delay.
As the EDF continues to scale, this latest funding round reinforces its position as a central instrument in shaping Europe’s defence future.