The European Parliament has approved a €1.5 billion ($1.7 billion) scheme to fund defence investments across the European Union and enhance support for Ukraine, according to a statement released on Tuesday. The initiative, known as the European Defence Industrial Programme (EDIP), is part of a broader effort to strengthen Europe’s defences following Russia’s 2022 invasion of Ukraine.

The EDIP aims to boost the EU’s defence capabilities, streamline production, and encourage joint procurement and manufacturing across member states. Under the programme, which runs until 2027, at least 65% of the cost of components in any defence product must originate from the EU or its partner countries.

European Parliament President Roberta Metsola stated on X that the programme will enhance the EU’s defence industry, support collaborative manufacturing, and increase assistance to Ukraine.

Discussions over the EDIP’s eligibility rules and sourcing requirements had delayed its implementation. France advocated for strict “buy European” rules to strengthen the domestic defence industry, while countries such as the Netherlands sought greater flexibility to source arms from the United States, the United Kingdom, and other nations.

Parliamentary approval marks the final step in the legislative process, with the endorsement by the EU’s 27 member states expected to be a formality. The scheme is designed to ensure that Europe can maintain robust defence capabilities while supporting Ukraine amid ongoing geopolitical tensions.