The European Defence Fund (EDF) continues to channel EU money into defense R&D, with a new €910 million tranche announced for 2024 projects.
In late April, the European Commission approved €910 million under the 2024 EDF to co-finance collaborative defence research and development. This funding – part of an annual EDF cycle – supports dozens of multinational projects, ranging from next-generation aircraft and drones to cyber defence, space-based surveillance, and energy innovations for military use. It follows €1.2 billion allocated in 2023, meaning the EU is steadily investing around €1 billion+ per year directly into its defence industry. The EDF is a novel instrument (launched in 2021) that provides grants typically covering 20–50% of project costs, with participating companies and governments covering the rest. The strategic aim is to foster joint development of cutting-edge systems so Europe isn’t dependent on U.S. or other foreign technologies. For example, current EDF-backed programs include a new European fighter jet engine demonstrator and various AI-enabled command systems. By combining resources, the EDF helps reduce duplication (multiple countries can pool efforts on one design) and ensures smaller member states/SMEs can partake in major projects. The April 2025 award list notably emphasized “strategic autonomy” and supported projects aligned with EU capability priorities (many of which also dovetail with NATO needs). Industry impact: EDF grants de-risk innovation – companies like Saab, Indra, Thales, etc., get non-dilutive funding to explore advanced prototypes that might not have immediate national funding. Over time this should increase the pipeline of indigenous European defence products. Politically, the EDF also strengthens the argument for EU-level coordination in defence: as one French official put it, “we must take more responsibility for our defence policy”, and that includes financing key programs at the European level. The €910 million injection this year is thus a concrete example of institutional support stimulating growth and innovation in the sector, complementing national procurement budgets with EU-backed investment in future capabilities.
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Commission invests €910 million to boost European defence and close capability gaps