The new EU agreement allocates 11 billion to build the defense industry

The Danish EU presidency, together with the EU Parliament and the EU Commission, has reached an agreement on a new EU defense program.

This is announced by Defense Minister Troels Lund Poulsen (V) in a press release.

“The agreement marks an important step in supporting a stronger, competitive, and capable European defense industry in Europe,” says Troels Lund Poulsen.

The agreement means that the EU will provide support of 1.5 billion euros until the end of 2027 to strengthen the defense industry.

This will be done through the European Defence Industry Programme (EDIP).

The amount corresponds to approximately 11 billion kroner.

In relation to the enormous rearmament that EU countries have agreed to at the NATO summit in The Hague, this is a smaller amount.

However, the agreement is important for the EU’s efforts to unite EU countries to expand production in the defense industry, emphasizes Troels Lund Poulsen.

“It has been a top priority for Denmark to secure an agreement during the presidency that benefits the European defense industry for the sake of Europe’s security,” he says.

The funds will be used to support member states’ work on the development, production, procurement, and acquisition of defense materials.

The agreement comes the day after the EU Commission presented its proposal for a roadmap for the rearmament of Europe towards 2030.

The roadmap is expected to be approved at next week’s EU summit in Brussels.

A central part of the proposal consists precisely of cooperation between EU countries on joint procurement in the defense industry.

Additionally, part of the funds will be used for defense industrial cooperation with Ukraine.

2.2 billion kroner will be allocated for this, says Troels Lund Poulsen.

“Ukraine is world-leading when it comes to the development of a number of new technologies – including in relation to drone combat. The Ukrainians have developed a unique collaboration between defense, industry, and research, which means that Ukrainian technology and knowledge are far ahead of Denmark and Europe. We can learn a lot from this,” says Troels Lund Poulsen.

He sees the agreement as a “milestone” for the EU’s goal that Europe should be able to defend itself by 2030.

The agreement is also seen as one of the most important results for Denmark after taking over the EU presidency on July 1.

By virtue of the presidency, Denmark has been at the forefront during the final negotiations.

The defense industry program now needs to be formally approved by the EU countries and the European Parliament.