Initially, the European Union budget was not legitimate to finance the defence sector, since this field falls within the competence of the Member States. To remedy this and strengthen coordinated European action, the Union uses other means to consolidate its position, in particular through support for industry, R&D and innovation and through national financing plans. The EDF, European Defence Fund, was adopted for this purpose in 2021, following initial discussions in 2016.
A few lines to understand concretely what the EDF finances
The deterioration of the European and global security climate has led the European Union to consider the issue of a common defence by including a defence research programme in the 2021-2027 multiannual financial framework. The EDF, which is part of this programme, is one of the two financial instruments of the current security and defence policy, the second being the European Peace Facility.
The EDF or EDFf, adopted by the European Parliament on 29 April 2021, allocates nearly 8 billion euros to the period 2021-2027.
Its main objective is to support defence cooperation in Europe by promoting and supporting transnational and collaborative projects. This fund should make it possible to strengthen the competitiveness, efficiency and innovation capacity of the European defence industry, thus gradually contributing to the Union’s strategic autonomy.
The EDF is structured in two complementary strands
The RESEARCH component
The EDF finances collaborative research conducted by European industrialists and the development of joint capabilities to enable European industry to be more competitive, innovative and efficient. The granting of funds allows greater risk-taking by operators in the sector to accelerate the deployment of innovations.
2.6 billion is dedicated to research projects, with the EDF able to support up to 100% of eligible costs.
On 31 March 2023, the European Commission adopted its 3rd annual EDF work programme for a budget of €1.3 billion.
The 7 calls for projects planned for 2023 cover a wide spectrum of themes (34 in total) and 17 project categories:
- Defence medical support, CBRN, biotechnology and human factors (R&D)
- Information superiority (D)
- Advanced passive and active sensors (R&D)
- Cyber (R&D)
- Space (R&D)
- Digital transformation (R)
- Energy resilience and ecological transition (R)
- Materials and components (R&D)
- Air combat (D) Air and missile defence (D)
- Ground combat (D)
- Force protection and mobility (R)
- Naval combat (D)
- Underwater warfare (D)
- Disruptive technologies (R)
- Innovative and forward-looking defence solutions for SMEs (R&D)
The CAPACITY BUILDING component
The EDF also promotes the joint acquisition and deployment of defence equipment and materials to strengthen the Union’s strategic autonomy, in particular by improving the interoperability of defence system equipment and avoiding duplication of common strategies. This component is intended to complement national funding by the Member States to cover the development of projects: prototypes, tests, certifications, etc.
5.3 billion to capacity building, with the EDF able to provide funding of between 20% and 80%.
It is also planned that 4 to 8% of the EDF can be redirected towards research and development projects for so-called “breakthrough” technologies, i.e. particularly innovative.
Who can benefit from the EDF?
Projects must be carried out jointly by at least 3 industrial companies established in at least 3 different Member States, a rule common to many European programmes. Calls dedicated to “disruptive technologies” can welcome smaller consortia (at least two eligible entities from at least two Member States or associated countries).
The following activities will be eligible for funding: increasing knowledge or improving defence products and technologies, conducting studies, design, testing, qualification or certification of a defence product, development of technologies to increase the effectiveness of defence products and technologies.
The participation of SMEs in collaborative projects is particularly encouraged and offers a higher funding rate. In addition, two calls per year will specifically target SMEs, who will also be offered business coaching.
Additional funding (up to 10%) is also available for projects arising from Permanent Structured Cooperation (PSC).
The fund is also open to the participation of companies established in associated states. For the time being, only Norway is associated with the fund.
For the implementation of certain specific projects, European companies may, under certain conditions, collaborate with third countries.
EDF calls for projects
Calls for proposals are launched on an annual basis following the adoption of the corresponding annual work programme.
The first call for proposals for the 2021-2027 EDF had a budget of €1.2 billion. 61 projects out of more than 140 were selected. Indeed, 845 million euro were awarded for projects to develop high-end capabilities such as new generation combat aircraft, tanks and ships, missile defence devices. Moreover, 322 million euro were granted for emerging and future challenges and threats through critical technologies such as artificial intelligence, semiconductors, military cloud, medical countermeasures, space and cyberspace.
Regarding the 2023 call for projects with a budget of €1.2 billion, it should be published on 15 June with a deadline for submitting projects in November 2023. Results are expected in the summer of 2024.
The different themes of the call will be published on the EU Funding & Tenders Portal dedicated to the EDF programme as well as on Eurofunding – Welcomeurope (subscribe for free HERE and receive all funding opportunities).
Further information:
- Descriptions of the themes of the 2023 call for proposals: Click here
- For any question related to the EDF calls for proposals: DEFIS-EDF-PROPOSALS@ec.europa.eu
- For all other questions related to the EDF: DEFIS-EDF@ec.europa.eu
- For support in your European projects: Welcomeurope
- National focal point: Click here
Welcomeurope ©
Elodie Roure – Lorraine de Bouchony
