The European Commission has approved €1.07 billion in funding for 57 defence projects under the European Defence Fund, with drones and counter-drone systems among the priority technology areas receiving allocations.
The investment follows evaluation of the 2025 EDF calls and aligns with the EU’s Defence Readiness Roadmap 2030. Four flagship programmes anchor the funding round: the European Drone Defence Initiative, Eastern Flank Watch, the European Air Shield, and the European Space Shield. Of the total, €675 million has been earmarked for 32 capability development projects, with the remaining €332 million directed at 25 research initiatives.
What’s being funded
The 2025 EDF calls drew 410 proposals — a 37% increase over the previous year — reflecting the pace at which European defence and research institutions are mobilising around the bloc’s rearmament push.
More than 15 of the funded projects contribute directly to the four flagship programmes. Project AETHER focuses on propulsion and thermal management technologies for drone defence systems. Project STRATUS will develop an AI-driven cyber defence system designed for drone swarms, with participation from a Ukrainian subcontractor — bringing direct operational experience from active conflict into the European industrial base.
The selected projects span AI, cyber defence, drone development, and counter-drone systems across 634 entities from 26 EU member states and Norway. SMEs account for more than 38% of participants and receive over 21% of allocated funding. Several drone-focused projects will introduce sub-calls offering up to €60,000 for startups and smaller firms, including those without prior defence sector experience. Ukrainian entities are eligible to apply.
Ukraine’s growing role in European defence R&D
The EU’s deepening collaboration with Ukraine’s defence sector is a structural feature of this funding round, not a footnote. Supported by the EU Defence Innovation Office in Kyiv, the partnership is designed to embed Ukrainian battlefield expertise directly into European development programmes. STRATUS is the clearest example — an AI drone swarm defence system built with input from an industry that has been iterating on exactly that problem under live fire conditions since 2022.
That integration reflects a broader shift in how European defence planners are approaching R&D. Experience accumulated in Ukraine is now being treated as an asset to be systematically absorbed into the European industrial base rather than observed from a distance.
Grant agreement preparations with selected consortia begin immediately, with the European Commission targeting signatures before the end of 2026 so project work can begin without delay.
