EU Weighs New Funding Tools to Boost Drone Industry Development
The European Commission is exploring ways to redirect or supplement existing EU funds to accelerate the development of Europe’s drone industry, which it now views as a strategic defense priority.
The Gaze reports this, referring to Euractiv.
The Commission is reviewing current budgets and legal frameworks to identify potential financial resources for the rapidly expanding unmanned systems sector.
Officials say the goal is to strengthen Europe’s industrial base in drones, both for production and counter-drone capabilities.
Despite skepticism from several southern European countries toward the idea of building a “drone wall” along the EU’s eastern borders, Brussels remains determined to advance the initiative and boost domestic manufacturing capacity.
Sources told Euractiv that one option under consideration is the creation of a dedicated EU Drone Fund, modeled after the Act in Support of Ammunition Production (ASAP), which was adopted in 2023 to increase shell manufacturing.
The proposal, still in its early stages, would require a new legislative process, including a formal proposal from the Commission, approval by EU member states and the European Parliament, and a decision on funding sources.
To gauge interest, the Commission has already begun surveying drone industry representatives about potential participation in such a program.
However, it remains unclear how the initiative would be financed. Sources said it is yet to be determined whether funds would come from the existing EU budget or through reallocated instruments.
Other potential financial tools under discussion include cohesion funds, SAFE loans, and pandemic-era recovery funds, some of which could be repurposed for defense needs.
Officials also mentioned the forthcoming European Defence Industry Programme (EDIP) as a likely contributor once adopted.
Swedish Prime Minister Ulf Kristersson recently appealed to the EU to simplify procurement standards for unmanned systems, while Polish Prime Minister Donald Tusk said he delivered a “firm response” to German Chancellor Friedrich Merz, who had questioned the effectiveness of the planned eastern “drone wall.”
In addition, NATO officials have repeatedly urged EU members to expand investment in drones and counter-drone technologies, calling them essential for the continent’s defense architecture.
As The Gaze reported earlier, on October 1, European Union leaders convened in Copenhagen for an informal summit focused on bolstering Europe’s collective defence and reaffirming long-term support for Ukraine as it resists Russia’s invasion.