EDPCIs launch with €325 million, Ankara summit delivers €70 billion Ukraine pledge, EIC opens defence equity, SAFE disburses
The European Commission proposed five European Defence Projects of Common Interest on 3 July with €325 million in EDIP seed funding and a €190 billion 2036 ambition. The NATO Ankara Summit on 7-8 July pledged €70 billion in 2026 support to Ukraine while European allies moved through 4 percent of GDP on defence. The EIC opened its first direct defence equity call at up to €30 million per company, SAFE began disbursing loans to Croatia and Cyprus, and Helsing and OHB pushed their Kirk space-targeting initiative forward.
Commission proposes five European Defence Projects of Common Interest with €325 million EDIP seed
On 3 July 2026 the European Commission proposed five European Defence Projects of Common Interest (EDPCIs) covering drones and counter-drones, maritime and seabed defence, space, air and missile defence, and Eastern Flank security. Under the €1.5 billion European Defence Industry Programme, €325 million is allocated to establish and deploy the projects, with a combined funding ambition of roughly €190 billion by 2036. On average 18 Member States participate in each project, and Ukraine is in four of the five. The Council must now formally adopt the list before EDIP disbursements begin, with follow-on financing expected via the European Competitiveness Fund. For founders, this defines the concrete demand signal for the next decade: consortia positioning against these five verticals, particularly with Ukrainian partners, will have the clearest line of sight to EDIP contracts and eventual EDPCI supply-chain roles.
Regulation
NATO Ankara Summit pledges €70 billion for Ukraine in 2026, European spending nears 4 percent
The NATO Summit concluded in Ankara on 8 July 2026 with a declaration pledging €70 billion in military equipment, assistance and training for Ukraine in 2026, and sovereign commitments to at least match that in 2027. Secretary General Mark Rutte reported European Allies and Canada are already investing around 4 percent of GDP in defence and security one year into the 10-year path to the 5 percent target (3.5 percent core plus 1.5 percent related) agreed at The Hague. The Defence Industry Forum on 7 July announced multinational procurement moves including Airbus A330 MRTT, Northrop Grumman Triton, and Saab GlobalEye. For ventures, the Ukraine envelope is now a durable, budgeted market, not a political variable: dual-use suppliers with EU or Ukrainian production footprints and near-term deliverability sit inside the fastest-moving procurement channel in Europe.
Source: The Ankara Summit Declaration, NATO
Startups
EIC STEP Scale Up Defence call opens with up to €30 million direct equity per company
The European Innovation Council opened the EIC STEP Scale Up Defence call on 1 July 2026, the first EU programme ever to deploy direct equity into defence companies. Eligible firms in EU Member States, Horizon Europe associated EEA countries and Ukraine can receive up to €30 million per company, with the EIC co-investing in rounds typically ranging from €50 million to €150 million or more, and total round sizes expected to be at least three to five times the EIC ticket. Priority areas include air and missile defence, drones and counter-drones and other critical defence technologies. The deadline is 28 October 2026. For founders raising Series B or C in defence and dual-use, this materially reshapes the cap table conversation: an EIC anchor de-risks the round for private co-investors and validates procurement-relevant tech, but only for teams already assembling a €50 million-plus syndicate.
Source: EIC STEP Scale Up Defence call opens today, European Innovation Council
Market
SAFE loans start flowing: Croatia receives €255 million, Cyprus €177 million as procurement window opens
The Commission's Security Action for Europe (SAFE) instrument began disbursing on 10 July 2026 with a first payment of €255 million to Croatia, following €956 million to Lithuania on 24 June, €177 million to Cyprus on 18 June and €6.56 billion to Poland on 29 May. SAFE offers up to €150 billion in long-maturity loans for common defence procurement, with contracts requiring that no more than 35 percent of component costs originate outside the EU, EEA-EFTA or Ukraine, and Category 2 procurements requiring contractor capacity to modify equipment without non-EU restrictions. Fifteen Member States plan projects with Ukraine. For ventures, SAFE is now a live buyer, not a paper facility: winning positions require EU-origin bill-of-materials discipline, at least one SAFE beneficiary plus a second Member State as customer, and readiness to be integrated into common procurement tenders in H2 2026.
Source: SAFE Security Action for Europe, Defence Industry and Space, European Commission
Previous issues
6 July 2026
Commission proposes five EDPCIs, EIC opens €30 million equity for defence scale ups, SAFE disbursements accelerate to Croatia and Cyprus
Brussels moved on multiple fronts in the first week of July 2026. The Commission tabled five European Defence Projects of Common Interest with a €190 billion 2036 funding ambition, while the EIC opened its first direct equity call for defence scale ups on 1 July. SAFE disbursements landed for Croatia and Lithuania, Finland, the UK, the Netherlands and Poland launched a new Multilateral Defence Mechanism, and Helsing and OHB pushed forward on AI enabled space targeting.
29 June 2026
Brussels prepares strategic defence projects, Romania fields counter-drone shield, Naval Group hands over De Grasse
The European Commission is preparing to unveil around five joint strategic defence projects this week, with €325 million earmarked under EDIP and two streams focused on drones and Eastern flank protection. Romania has integrated the Merops counter-drone system into its national air defence after May's Russian drone incident, while Naval Group delivered the fourth Barracuda-class submarine to the French Navy on 24 June. In Vilnius, Granta Autonomy launched a new unmanned systems venture, and Finland confirmed Europe's first sustainment centre for the MLRS Common Fire Control System with Lockheed Martin and Insta. The signal across the week: EU-level capital is finally moving toward named projects, and procurement is consolidating around sovereign supply chains.
23 June 2026
EU Council accelerates Eastern Flank Watch, EIC opens direct equity, E2D fund launches, Frankenburg eyes unicorn round
European leaders meeting on 18-19 June endorsed faster work on the Eastern Flank Watch and a Drone and Counter-Drone Action Plan, while the European Innovation Council opened a €100 million direct-equity call for defence scale-ups, the first of its kind. On the capital side, Earlybird and AVP unveiled E2D, a €500 million defence and dual-use growth fund with first close on 30 June, and Estonia's Frankenburg Technologies opened its Riga missile assembly site while sounding out a €100 million Series B at a unicorn valuation. Destinus marked its 1,000th T150 turbojet, signalling that European cruise-missile propulsion is finally moving to industrial scale.