On March 5, the European Commission presented the first-ever EU Defense Industrial Strategy (EDIS) and a new EU Defense Industry Program (EDIP) aimed at increasing Europe's readiness and security, UNN reports.
Details
"Today, the European Commission and the High Representative presented the first-ever European Defense Industrial Strategy at EU level and proposed an ambitious set of new actions to support the competitiveness and readiness of the defense industry," the statement said.
It is noted that the European Defense and Industrial Strategy presents a set of measures aimed, among other things, at "uniting with NATO and our strategic, like-minded and international partners and closer cooperation with Ukraine.
The strategy proposes to the member states:
- Procure at least 40% of defence equipment in a collaborative manner by 2030;
- Ensure that, by 2030, the value of intra-EU defence trade represents at least 35% of the value of the EU defence market;
- Make steady progress towards procuring at least 50% of their defence procurement budget within the EU by 2030 and 60% by 2035.
The EDIP will reportedly mobilize €1.5 billion from the EU budget over 2025-2027 to continue to improve the competitiveness of the European Defense Technology and Industrial Base (EDTIB).
What is envisaged for Ukraine in the EDIS strategy
The Ukrainian and European defense industry and technology bases, as noted, "can mutually benefit from enhanced cooperation.
"In this regard, it is proposed that the Ukrainian industry can participate in the Union's defense industry support program. Thus, the proposed EDIP provides Ukraine with the opportunity to participate in joint procurement cooperation, and Ukrainian defense companies will be supported in building up their industry and cooperation with the European Defense Industrial and Technological Base," the European Commission said in a statement.
The strategy, as noted, also "aims to stimulate cooperation between Ukrainian and European industries and to facilitate targeted information exchange on standards and relevant lessons learned." The EU is also expected to hold an EU-Ukraine Defense Industry Forum in 2024 to strengthen cooperation between the defense industries of Ukraine and the EU.
"To ensure interaction between startups and innovators of the Union, as well as industry and the Armed Forces of Ukraine, the EU will open an Innovation Office in Kyiv," the statement said.
What is envisaged for Ukraine under EDIP
The EDIP will reportedly provide Ukraine with the opportunity to participate in joint procurement and support the Ukrainian defense industry in its industrial development. "To this end, EDIP provides for a separate budget line to support such activities. In accordance with the decision of the EU Council on the proposal of the EU High Representative, a share of the excess profits received by central securities depositories from immobilized Russian sovereign assets may be used (if the urgent needs of Ukraine's defense allow) to finance this budget item," the European Commission said.
In presenting the strategy and program, EU High Representative Josep Borrell said that "our commitment to supporting Ukraine's defense capabilities is unwavering.
The potential use of excess profits from frozen Russian assets for the supply and procurement of military support for Ukraine, which could be done through the European Peace Fund, is another step forward