The European Commission has approved a major new funding round for European defense projects, allocating €1.07 billion to 57 initiatives under the European Defense Fund (EDF).
This investment follows the evaluation of the 2025 EDF Call and aims to strengthen the EU’s long-term defense strategy while accelerating technology development across the EU.
This latest funding is in line with the Defense Preparedness Roadmap 2030 and supports four flagship programs: the European Drone Defense Initiative, Eastern Flank Surveillance, European Air Defense Shield and European Space Shield.
Together, these initiatives form the backbone of the EU’s drive to strengthen its strategic autonomy and defense capabilities.
Shows that interest in records is gaining momentum
The 2025 EDF call received unprecedented interest, with 410 proposals submitted, an increase of 37% on the previous year.
This surge highlights growing engagement across Europe’s defense and research sectors and the growing demand for joint defense projects.
Of the total amount of €1.07 billion, €675 million will be allocated to 32 capacity development projects and €332 million will fund 25 research initiatives.
These investments reflect a balanced approach between improving immediate operational capabilities and supporting long-term innovation.
Focus on advanced defense technology
The selected defense projects span a wide range of critical areas, including artificial intelligence (AI), cyber defense, drones and counter-drone systems.
The aim is to enable Europe to remain competitive with cutting-edge defense technology while meeting evolving security challenges.
More than 15 of the funded projects directly contribute to four major EU programmes: One example is Project AETHER, which focuses on propulsion and thermal management technologies to support drone defense systems.
In parallel, several cross-cutting efforts will strengthen the capabilities of sensors, digital infrastructure, and cyber resilience.
Expanding cooperation with Ukraine
A notable feature of this funding round is the deepening cooperation between the EU and Ukraine’s defense sector.
The partnership, supported by the EU Defense Innovation Agency in Kyiv, aims to integrate Ukrainian expertise into Europe’s broader industrial base.
Project STRATUS stands out in this respect. The initiative will involve Ukrainian subcontractors to develop an AI-driven cyber defense system tailored to the drone swarm.
This engagement brings direct operational insights from active conflict environments to European defense projects, enhancing their real-world applicability.
Open the door to startups and small businesses
EDF continues to prioritize inclusivity within the European defense ecosystem, in particular by encouraging the participation of small and medium-sized enterprises.
Several projects focused on scalable drone technology will introduce subcalls aimed at startups and small and medium-sized enterprises (SMEs).
Through these subcalls, small businesses can access up to €60,000 in funding to contribute to innovative solutions. This mechanism is designed to lower barriers to entry and attract new talent to defense projects, including participants with no previous experience in the field.
Ukrainian organizations are also eligible to apply, further expanding the scope of the program.
Strong participation across Europe
The selected projects involve 634 organizations from 26 EU Member States and Norway, underscoring the collaborative nature of EDF.
Small and medium-sized enterprises play a central role, accounting for more than 38% of participants and receiving more than 21% of allocated funds.
This distribution reflects a deliberate effort to diversify the defense industrial base while fostering innovation across organizations of various sizes.
Once the selection stage is complete, the European Commission will move on to preparing a subsidy agreement with the selected consortium.
The goal is to finalize and sign the agreement by the end of the year so that work on these defense projects can begin without delay.
As EDF continues to grow in size, this latest round of funding strengthens its position as a central vehicle for shaping the future of European defense.
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