EU capitals are split over how far and how fast to build a common defence industry.

European Union governments met in Brussels to thrash out the European Defence Industrial Programme (EDIP), a flagship plan to expand joint procurement and production across the bloc. The discussions have highlighted sharp differences over funding, eligibility rules and how much preference to give EU-made equipment.

At the heart of the dispute is whether EDIP should prioritise “buy European” approaches or allow broad access for non-EU suppliers, particularly from the United States and the United Kingdom, when they manufacture or assemble within the single market. Several central and eastern European countries argue that strict EU-only preferences could slow deliveries needed to replenish stocks and support Ukraine, while others push for the scheme to channel orders firmly to European industry.

Member states are also wrangling over how to finance the instrument, amid pressure on national budgets and debate on whether EU-level money and tax breaks, such as VAT exemptions for joint purchases, should be expanded. Smaller countries have voiced concerns about fair access for their firms and the administrative burden of consortium-based procurement.

The European Commission sees EDIP as the long-term successor to emergency measures launched after Russia’s 2022 invasion of Ukraine, aiming to build scale, reduce duplication and improve interoperability. Diplomats said any delay risks blunting industrial momentum as allies brace for a protracted war and uncertain transatlantic politics later this year.

Source: Euractiv.