The European Commission approved an initiative worth €1.5 billion ($1.7 billion) aimed at boosting European and Ukrainian defence industries.
Under the programme, defence industries in European Union countries, Norway and Ukraine “can seize funding opportunities to strengthen defence cooperation and ramp up production,” said EU Defence Commissioner Andrius Kubilius on Monday.
Allocated money will be made available as grants in the years 2026-2027.
The aim of the initiative is to strengthen the technological foundation, innovation and collaboration to better face current and future challenges, the commission said.
More than €700 million are to be spent on increasing the production of “key defence components and products, including counter-drones systems, missiles and ammunition” in the EU and in Ukraine.
The initiative is allocating €325 million, for “ambitious collaborative” defence projects, mainly aimed at the broader EU though bids are also open to Norway and Ukraine.
The plan earmarks €240 million for joint procurement, including counter-drone, air and missile defence and ground and naval combat systems.
Defence start-ups and other smaller defence companies are to receive €100 million in equity support through the fund.
The first round of calls for proposals is to start on Tuesday, the commission said.