Council of the European Union and European Parliament 16 December 2025, Regulation (EU) 2025/2643 of the European Parliament and of the Council of 16 December 2025 establishing the European Defence Industry Programme and a framework of measures to ensure the timely availability and supply of defence products (‘EDIP Regulation’) (Text with EEA relevance)

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Regulation (EU) 2025/2643 (EDIP Regulation), adopted on 16 December 2025 under Articles 114(1), 173(3), 212(2), and 322(1) TFEU, establishes the European Defence Industry Programme (EDIP) and the Ukraine Support Instrument for the period 2025–2027, with financial envelopes of EUR 1.2 billion and EUR 300 million respectively, to strengthen the competitiveness, resilience, and readiness of the European Defence Technological and Industrial Base (EDTIB) and to support the recovery, reconstruction, and modernisation of the Ukrainian Defence Technological and Industrial Base (Ukrainian DTIB). Key provisions create legal frameworks for European Defence Projects of Common Interest (EDPCIs), Structures for European Armament Programmes (SEAPs), a European Military Sales Mechanism, and a Fund Accelerating Defence Supply Chains Transformation (FAST), while establishing eligibility criteria requiring recipients to be established and managed within the Union, associated countries, or Ukraine and restricting components from non-associated third countries to a maximum of 35% of estimated component costs. The Regulation further introduces a Union-wide security of supply regime, including mapping and monitoring of crisis-relevant products, two supply-crisis activation mechanisms (supply-crisis state and security-related supply-crisis state), prioritisation measures, and a Defence Security of Supply Board, with enforcement through fines and periodic penalty payments imposed by the Commission.AI