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European Defence Fund 2021-2027

Launched in 2021 and funded from the European Union budget, the European Defence Fund (EDF) is a multiannual programme that is part of a larger set of EU defence initiatives. The objective of the Defence Fund is to increase the competitiveness, efficiency and innovation capacity of the European defence industry and the research community. At the same time, funded cooperation projects aim to increase and strengthen defence materiel cooperation between the armed forces of the Member States. In addition, the Fund's activities support the goal to strengthen a single European internal market. 

Consisting of research and development projects, the Defence Fund supports joint procurement across national borders to develop military capabilities. The projects cover the entire research and development cycle of defence materiel. The Defence Fund's total budget is about EUR 8 billion for the current multiannual financial framework period 2021-2027. About one third of the budget has been allocated to research and about two thirds to development measures. 

The Fund may grant funding for defence research and development phase activities that deal with the development of new defence products, technologies (including disruptive technologies) and knowledge, or the upgrading of existing products and technologies. Operations under the Defence Fund should be carried out in cooperation between at least three actors, and the actors must be located in three different EU Member States or associated countries (Norway). 

As a rule, the beneficiaries are industrial and research consortia. Funding is mainly granted through competitive applications and in accordance with annual work programmes. The level of EU funding granted depends on the nature of the action. Defence research may be funded in full, but additional funding from Member States or industry is required in development projects. The annual work programmes also include various challenge searches and hackathons for start-ups and SMEs, i.e. innovation competitions.

Proposals for actions to be financed will be assessed using the criteria laid down in the EDF Regulation. The assessment emphasises 

  • relevance of military capabilities to be developed for defence administrations 
  • quality and efficiency
  • breakthrough potential
  • innovative thinking and technological development 
  • competitiveness of the European defence industry 
  • the EU's security and defence interests, and 
  • increasing cross-border cooperation (including SMEs). 

With regard to development projects, the life cycle of defence materiel and cooperation between Member States will also be taken into account in the assessment.