EU Allocates €1B to Boost Defence R&D in 2026

The European Commission has taken a significant step towards bolstering European defence capabilities by adopting the European Defence Fund (EDF) annual Work Programme for 2026. This initiative allocates one billion euros to collaborative defence research and development projects, marking a substantial investment in the continent’s security infrastructure.

Since its inception in 2021, the EDF has already funded 224 projects with around four billion euros, fostering unprecedented cooperation in defence R&D across Europe. The 2026 Work Programme aims to build on this success by addressing 31 collaborative topics in critical and urgent areas, aligning with commonly agreed capability development priorities.

The programme is designed to strike a balance between supporting traditional defence capabilities, future-oriented technologies, and innovation. Half of the budget will be dedicated to collaborative research and development of major defence capabilities, including an EU endo-atmospheric interceptor, a main battle tank, a multiple rocket launcher, a semi-autonomous vessel, key technologies for next-generation air fighters, and the integration of Galileo Public Regulated Service receivers.

One quarter of the budget will focus on future-oriented defence technologies and capabilities. These include quantum-secured networks, electronic warfare, multi-domain operations cloud, high-performance energy systems, chemical, biological, radiological and nuclear decontamination, and the use of artificial intelligence and swarms of small robots and drones for tactical awareness.

The remaining quarter of the budget is allocated to implementing the EU Defence Innovation Scheme (EUDIS). This initiative underscores the Commission’s commitment to strengthening European innovation capacity by increasing the participation of small and medium-sized enterprises (SMEs) and mid-caps. EUDIS aims to support innovation, disruptive technologies, and resilient supply chains in the defence sector.

Under EUDIS, almost €60 million will be allocated to disruptive technologies such as over-the-horizon detection, while over €60 million will support non-thematic calls for SME proposals. The programme also includes a technological challenge on AI-based tactical situational awareness, two spin-in topics to adapt civilian technologies for defence use, financial support to third parties, and two Defence Hackathons planned for March 2026 and spring 2026.

The EUDIS Business Accelerator will expand its support for startups and scaleups through two eight-month accelerator cohorts of 20 companies each. Participants will receive tailored coaching, attend five European bootcamps, access testing facilities, obtain a €120,000 performance-based seed-funding voucher, and compete for additional rewards. Calls for the Spring cohort are now open.

The EUDIS Matchmaking programme will also be expanded, delivering more than ten onsite and online events to connect technology founders with investors and industry leaders. In addition, more than €20 million will support SMEs and mid-caps through measures such as equity financing via the Defence Equity Facility and business coaching for EDF project participants.

“Europe must strengthen collaboration in defence, with the European Defence Fund acting as a key foundation for this effort,” said Andrius Kubilius, European Commissioner for Defence and Space. “With €1 billion in the 2026 European Defence Fund, we are putting collaboration at the centre of Europe’s defence innovation.”

This strategic investment highlights the European Commission’s commitment to fostering innovation and collaboration in defence technology. By focusing on both traditional and future-oriented capabilities, the EDF Work Programme for 2026 aims to ensure that Europe remains at the forefront of defence research and development, ultimately enhancing the continent’s security and strategic autonomy.

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