The European Commission has adopted a number of decisions launching a financing scheme for defence programs in late June. They pertain to the European Defence Fund worth almost EUR 8 bn., allocated to the years between 2021 and 2027, but also to the European Defence Industry Development Programme (EDIDP). The latter initiative involves the Polish businesses as well.
European Defence Industry Development Programme (EDIDP)
In parallel to the financing provided by EDF, the European Commission, following the submission of proposals, decided to award contracts within the framework of the second, and last, tranche of funds tied to the European Defence Industry Development Programme (EDIDP). EDIDP was launched in 2018, with financing in the amount of EUR 500 million, provided via 2019-2020 budgets.
The main assumption behind this programme was to create a possibility to start EU-budget co-financing for defence capabilities (up to the prototyping stage), before the EDF starts its formal actions. The programme is associated with the timeline between 2021 and 2027. EDIDP is the second instrument allowing for financing the defence industry initiatives with the use of EU funds. The first one is the Preparatory Action For Defence Research. However, the latter pertains solely to research and development programmes financed by the EU completely. The EIDP, meanwhile, covers the establishment of specific capabilities (armament systems, procurement phase excluded), and assumes that these would be co-financed via the EU budget.
Following the assessment of proposals submitted by industrial consortia, the 2020 EDIDP has an amount of EUR 158.3 million allocated to 26 projects in total, with 15 of those projects being in alignment with PESCO priorities. According to the data published by the European Commission, the division is shaped as follows: Undersea – EUR 23.5 million, Air Combat – EUR 18.1 million, AI – EUR 5.7 million, CRBN protection – EUR 6.7 million, Cyber – EUR 14.5 million, Counter-UAS – EUR 13 million, Ground Combat – EUR 9 million, Maritime – EUR 21.5 million, Precision Strike – EUR 7 million, SME projects – EUR 13.6 million, Space capabilities – EUR 22.5 million, Simulation – EUR 2.6 million.