European Defence Fund sees record project applications amid rising EU spending

The European Defence Fund (EDF) has reached a record 612 project proposals for cooperation, research, and development, marking a 49 percent increase compared to the previous year. With a budget of 1.006 billion euros available this year, the fund supports both established industrial players and new innovative companies. For the first time, candidates from Ukraine are eligible to apply following an association agreement with the EDF.

Funding is prioritized for research and development aimed at creating prototypes for production, including projects such as atmospheric missile interceptors, next-generation main battle tanks, missile launchers, and semi-autonomous military vehicles. Additionally, 25 percent of the budget is dedicated to the European Defence Innovation Scheme (EUDIS) to support disruptive military technologies.

Simultaneously, defense spending across the European Union is rising significantly. EU member states spent 418 billion euros on defense last year, a 20 percent increase, with projections suggesting spending could reach 454 billion euros this year. Despite this financial growth, the industry faces challenges in scaling production capacity, particularly regarding raw materials like nitrocellulose and the need for a substantial increase in the workforce to meet rising demand.