The EU is financing joint arms purchases from the community budget for the first time

The European Commission announced that, for the first time, it funded a joint procurement of weapons on behalf of EU countries, most of which are destined for Ukraine.

Specifically, the Commission approved the funding of five cross-border projects, worth 300 million euros, to support joint defense product procurements by member states in three critical areas: air and missile defense systems, modern armored vehicles, and ammunition.

The five selected projects represent a combined public procurement value exceeding 11 billion euros, demonstrating the high leverage of EU funding. According to the Commission, the EDIRPA investments of 300 million euros have provided incentives for commitments 36 times greater, highlighting the program’s effectiveness in promoting significant defense investments across the EU.

“This is the first time we have used the EU budget to support member states in the joint procurement of defense products,” emphasized the Vice-President of the Commission Margrethe Vestager. “This will allow better resource utilization for national defense budgets, improve the interoperability of European armed forces, strengthen our industry, and better prepare Europe to address defense threats,” she added.

20 member states are participating in the selected EDIRPA projects, some of which will be participating for the first time in joint procurement projects in the defense sector. This reflects EDIRPA’s role in encouraging cooperation among member states to address critical capability gaps, particularly those concerning the transfer of defense equipment to Ukraine.

Most selected projects include the procurement of defense products destined for Ukraine, including air and missile defense systems and ammunition, enhancing the country’s defense capabilities amid the ongoing Russian assault.

The selection of EDIRPA projects comes in response to calls for proposals announced by the Commission in March 2024. With the approval of EDIRPA and its subsequent implementation through the work program, and the launch of corresponding calls for proposals, the EU encourages member states and Norway for the first time to acquire joint defense products, meeting the most urgent and critical needs, especially those amplified by the Russian attack on Ukraine. Aggregating demand provides predictability and thus encourages industry to increase production capacity and improve the interoperability of national armed forces.

The EDIRPA work program supports joint public procurement in three areas: 1) Ammunition, 2) Air and missile defense, and 3) Platforms and replacement of legacy systems.

The EDIRPA program is a short-term instrument approved following the Russian attack on Ukraine and is expected to last until 2025, aiming to provide incentives for cooperation on the most urgent defense products. (14/11/2024)