Boosting Europe's Defence Production

Defence industry Boosting Europe's Defence Production

2026-10-27 Source: Press release European Commission 1 min Reading Time

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Commission allocates €168.2 million to boost Europe's defence production under the European Defence Industry Programme.

The European Commission has allocated €168.2 million (approx. 188.3 million USD) to support the first eight projects under the Industrial Reinforcement Action (IRA) pillar of the European Defence Industry Programme (EDIP).

The projects will leverage €1.26 billion (approx. 1.4 billion USD) in industrial investment to accelerate and expand production for energetic components used in missiles, drones and ammunition. From 2027, the projects are expected to reduce manufacturing times by up to 90% and enable annual production of more than 20,000 tons of energetic materials, 3,500 drone and missile propulsion systems, 200,000 loitering munitions warheads and 60 million ammunitions. The investment will support production across 17 sites in 14 EU Member States and Norway, and help protect these facilities against growing physical and cyber threats.

Published in June 2026, this first IRA call dedicated to energetic components (IRA-EC) attracted strong interest, with 83 proposals submitted by companies from 23 EU Member States and Norway.

IRA-EC builds on the Act in Support of Ammunition Production (ASAP), an emergency instrument addressing immediate production bottlenecks and aiming to increase ammunition manufacturing capacity following Russia's full-scale invasion of Ukraine.

With a total budget of €1.5 billion (approx. 1.7 billion USD), EDIP is the EU programme dedicated to strengthening Europe's defence industry. More than €700 million (approx. 784 million USD) allocated to the IRA pillar aim to expand defence production in Member States, Norway and Ukraine.

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