Aim of the European Defence Fund
The European Defence Fund, funded under Heading 5 (Security and Defence) of the EU’s 2021-2027 long-term budget and NextGenerationEU, was established with the aim of supporting R&D in defence. It promotes cooperation between companies, including SMEs and research actors throughout the Union, and boosts defence capability development through investments. It also helps EU companies develop cutting-edge and interoperable defence technologies and equipment.
Budget
The total budget for the 2021-2027 period is estimated at €8 billion, with €1.1 billion allocated for 2024 alone. €2.5 billion and €5.3 billion have been allocated for collaborative defence research and collaborative capability development projects that complement national contributions respectively.
The EU Defence Innovation Scheme (EUDIS)
The EU Defence Innovation Scheme (EUDIS) was set up as part of the European Defence Fund in order to make it easier for smaller players and innovators to be part of the European defence sector.
EUDIS thus supports smaller players and innovators throughout their development cycle to mature, scale-up, demonstrate their use-case and successfully enter the market.
In the EDF 2024 Work Programme, the total funding available for EUDIS is €225M.
Funding opportunities
A wide range of funding opportunities are available, grouped under 17 categories of action through the EDF’s annual work programmes:
| Medical response, Chemical, Biological, Radiological, Nuclear (CBRN) and human factors |
Energy resilience and environmental transition |
Naval combat |
| Information superiority |
Materials and components |
Underwater warfare |
| Sensors |
Air combat |
Simulation and training |
| Cyber |
Air and missile defence |
Horizontal Categories: |
| Space |
Ground combat |
Disruptive technologies |
| Digital transformation |
Force protection and mobility |
Innovative defence technologies (SMEs) |
The funding rates differ according to the type of activity, as illustrated in the tables below.
| Research actions |
| Activity type |
EU funding rate |
| Generating knowledge |
100% |
| Integrating knowledge |
100% |
| Studies |
100% |
| Design |
100% |
| Development actions |
| Activity type |
EU baseline funding rate |
Bonuses
Funding rate mechanism to incentivise co-financing (leverage effect)
|
EU maximum funding rate |
| Integrating knowledge |
65% |
100% |
| Studies |
90% |
100% |
| Design |
65% |
100% |
| Prototyping |
20% |
55% |
| Testing |
45% |
80% |
| Qualification |
70% |
80% |
| Certification |
70% |
80% |
| Increasing efficiency |
65% |
100% |
A bonus system also exists for development actions, summarised in the table below.
| Condition for application |
Value of the bonus |
| PESCO Bonus |
| Action developed in context of the permanent Structured Cooperation (PESCO) |
+10% for all activities in the action |
| ‘Mid-cap’ bonus |
| % eligible costs allocated to ‘Midcaps’ established in the EU (and NO) ≥ 15% |
+10% for the activity |
| SME Bonus |
| % eligible costs allocated to ‘SMEs’ established in the EU (and NO) ≥ 10% |
% of eligible costs allocated to ‘non cross-border SMEs’ established in the EU and NO (maximum 5%)
2 x % of eligible cost allocated to ‘cross-border SMEs’ established in the EU and NO |
More information about each category of calls is available in the yearly work programmes. The 2024 work programme can be found here: https://defence-industry-space.ec.europa.eu/edf-work-programme-2024_en.
Applying for funding under the EDF
In order to apply for funding, it is important to check which calls are currently available on the Funding and Tenders Portal.
This is the general eligibility criteria for EDF calls:
- Consortia consisting of at least 3 Member States or associated countries (currently only Norway) can apply for funding. Calls for disruptive technologies allow smaller consortia (at least 2 entities from 2 Member States or associated countries).
- All consortia must comply with international law and high ethics standards.
- Recipients and subcontractors must be EU-based, with their executive management structure in the EU. They should not be controlled by a non-associated third country, with exceptions possible through approved guarantees.
- Entities from non-associated third countries can participate, but under conditions ensuring the EU security and defence interests, without receiving EDF funding.
However, since other eligibility criteria may apply for specific calls, it is always advisable to consult the call document before applying.
When thinking about which call to apply for, it is helpful to browse through previous and ongoing EDF projects to get inspiration and find ways to make your project innovative and relevant. In your application form, it is especially recommended to mention a few other projects and explain how you are building on them or perhaps taking a different approach.
National Focal Points
The EDF National Focal Points (NFPs) are individuals who are tasked with reaching out to stakeholders, notably applicants, potential applicants and beneficiaries of the EDF programme, in order to provide them with information and advice and assist them in building partnerships. The NFPs are supported by national structures established under the responsibility and control of the Member States and Norway.
You can check out the list of National Focal Points here:
https://defence-industry-space.ec.europa.eu/eu-defence-industry/network-european-defence-fund-national-focal-points-nfp_en
Other EU defence initiatives
Aside from the European Defence Fund, the EU has also set up other defence initiatives.
The Permanent Structured Cooperation (PESCO), made up of 26 EU member states (except for Malta), is a treaty-based framework to deepen defence cooperation among its participating EU Member States. PESO projects are designed to deliver capability for the use of Member States, including to support the Common Security and Defence Policy operations and missions.
The European Peace Facility (EPF) was set up in 2021 to increase the EU’s support to peace operations by third parties worldwide, to cover joint costs of Common Security and Defence Policy military mission, as well as to enable the EU to engage in broader actions aimed at supporting partner countries’ armed forces with infrastructure, equipment or military technical assistance.
Within the Connecting Europe Facility, EUR 1.5 billion have been allocated to enhance the EU’s strategic transport infrastructures to make them fit for military mobility.
The Action Plan on synergies between civil, defence and space industries aims to avoid unnecessary duplication, enhance complementarity and ensure cross-fertilisation between civil and defence.
