European Defence Fund will invest to research and innovation

A €13 billion European Defence Fund (EDF) will provide €4.1 billion to directly finance  competitive and collaborative research projects, in particular through grants. Beyond the research phase, €8.9 billion will be available to complement Member States' investment by co-financing the costs for prototype development and the ensuing certification and testing requirements.

The main features of the European Defence Fund are:

• Financing of projects which correspond to priorities agreed by Member States within the framework of the Common Security and Defence Policy.
• Only collaborative projects involving at least 3 participants from 3 Member States are eligible;
• The EU will only co-fund the development of common prototypes where Member States commit to buying the final product;
• Favouring projects by consortia which include SMEs and, if necessary, launching dedicated calls for proposals;
• 5 localhost of the funds dedicated to disruptive technology and innovative equipment allowing the EU to boost its long-term technological leadership;
• Permanent Structured Cooperation (PESCO) projects may receive an additional co-financing bonus of 10 localhost.

More information is available here.