The European Commission, represented by Commissioner Andrius Kubilius, is addressing concerns about geographic imbalances in defence funding through the European Defence Fund (EDF). The aim is to prevent future EU defence technological and industrial programmes from favoring established large companies and Member States, which has triggered reactions mainly from less dominant defence sectors and countries feeling sidelined.
This response comes as an answer to a parliamentary question from Michał Dworczyk, member of the European Conservatives and Reformists (ECR) group. Dworczyk criticized the EDF for concentrating projects and funding primarily in stronger defence economies, notably affecting regions such as the eastern flank of the EU and NATO.
Kubilius outlines that the EDF is governed by uniform eligibility and selection criteria ensuring fair competition, with specific measures to include small and medium-sized enterprises (SMEs). These include the European Defence Innovation Scheme, which commands about 20% of EDF's budget specifically to involve SMEs, particularly benefiting eastern European entities. However, there are no detailed numerical targets or new institutional frameworks proposed for future funds; rather, broad supportive mechanisms like project advisory services and innovation actions are highlighted.
The policy orientation emphasizes inclusion and cross-border cooperation across diverse national defence ecosystems, rather than shifting power away from dominant players. The trade-off hinges on balancing competitiveness and technological progress with geographic participation without imposing hard quotas or redistributive safeguards.
Stakeholders impacted include large defence contractors who retain influence, SMEs and emerging defence actors gaining more opportunities, Eastern European countries concerned about underrepresentation, and EU regulators managing equitable fund access. While SMEs and smaller countries see increased access, larger firms may face intensified competition. The Commission's reply signals ongoing efforts to refine policy, with follow-up evaluations expected to further shape the 2028-2034 Multiannual Financial Framework (MMF) defence instruments.