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The European Parliament on Tuesday approved the first-ever European Defense Industry Program (EDIP), a landmark initiative to strengthen the EU's defense capabilities, boost joint procurement and support Ukraine's defense industry.

The legislation, agreed informally with the EU Council, allocates a budget of €1.5 billion ($1.7 billion), including €300 million earmarked for the Ukraine Support Instrument (USI).

An additional Fund to Accelerate Defense Supply Chain Transformation (FAST) will receive at least €150 million in supplementary contributions.

Lawmakers also secured an increase in the EDIP's budget through extra financing from the Security Action for Europe (SAFE) instrument.

Speaking at the plenary session at the European Parliament, EU Commissioner for Defense Andrius Kubilius described the EDIP as "a pioneering program for defense preparedness," emphasizing that it will shift production and procurement from "improvisation" to "organization."

He added that the program provides a "toolbox of crisis response measures" to ensure reliable access to defense products and enhance security of supply across the EU.

EDIP establishes a legal framework for European defense projects of common interest, requiring participation from at least four member states, and allows Ukraine to take part in the projects.

Under the "buy European" principle, defense products seeking EU funding must source no more than 35% of components from non-associated third countries.

The rapporteurs, French MEPs Raphael Glucksmann and Francois-Xavier Bellamy, addressed criticism from right- and left-wing colleagues.

Glucksmann argued that opposing the program undermines European sovereignty, while Bellamy warned that focusing solely on social projects without defense readiness would leave Europe vulnerable.

The legislation was approved by a 457-148 vote, with 33 abstentions. It awaits formal endorsement by EU member states before publication in the Official Journal.​​​​​​​