The instrument has a €300 million budget to allow partial reimbursement for member states

The European Council has given the green light on 9 October to the new EU instrument aimed to boost joint procurement for the EU defence industry, strengthen the bloc’s defence technological and industrial base and encourage countries to “buy European”.

The European Defence Industry Reinforcement Through Common Procurement Act (EDIRPA) measure will allow member states to create consortia – made up of at least three countries – for joint purchases. As agreed, countries will be able to benefit from €300 million from the EU budget as a partial reimbursement.

“EDIRPA will allow member states to buy more, jointly, faster and buy European,” said Timo Pesonen, the current Director-General of DG DEFIS (Defence Industry and Space), in September.

The instrument is aimed to different types of EU companies, including SMEs and mid-caps. Contractors and sub-contractors must be established in the EU or associated countries (Iceland, Liechtenstein or Norway) and not controlled by non-associated nations. In addition, at least 65% of the end products’ components should originate in the EU or an associated country. EDIRPA is also thought to accelerate adjustments of industry to structural changes and open supply chains for cross-border cooperation in the EU.

The measure has its roots in a March 2022 leaders’ informal meeting in Versailles, where, amid pressuring needs to send ammunitions for Ukraine and replenish Europeans’ stocks – and acknowledgements that the EU was not ready for a potential war with Russia – it was agreed to foster European defence capabilities.

Following the leaders’ call, the Commission launched a proposal for EDIRPA in July 2022, which was then adopted by the Council and the Parliament before being finally endorsed.

Caterina Tani reporting from Brussels