The European Defence Fund (EDF) is set to allocate €1 billion ($1.2 billion) for defense research and development in 2026, with the largest portion dedicated to air and missile defense initiatives, including efforts to counter hypersonic glide vehicles.
According to a call for proposals released Wednesday by the European Commission, €168 million of the annual EDF work program will focus on hypersonic threat mitigation and advanced endo-atmospheric interception systems. Ground combat projects are another major focus, with €150 million earmarked for the development of next-generation main battle tanks and multiple rocket launchers.
Established in 2021, the EDF supports joint R&D projects among EU member states and has invested roughly €4 billion across more than 200 initiatives. Some projects target critical capability gaps, such as Odin’s Eye II, which aims to create a satellite-based early warning system, or complex programs like hypersonic defense that are challenging for individual nations to undertake alone.
“Europe must enhance defense collaboration, and the European Defence Fund serves as a cornerstone for this effort,” said European Commissioner for Defence and Space Andrius Kubilius. “For the sixth consecutive time, we are dedicating substantial resources to stimulate and support R&D in major defense capabilities.”
An interim evaluation by the European Parliamentary Research Service, published in October, noted that the EDF has reduced duplication and promoted pan-European cooperation, but highlighted the need for simplified procedures and better alignment with national defense planning.
For 2026, half of the EDF budget will go toward major defense capabilities, including an EU endo-atmospheric interceptor, a new main battle tank, multiple rocket launchers, and key technologies for future air combat aircraft. Another 25% will fund advanced defense technologies such as quantum-secured communications, AI applications, and robotic and drone swarms.
The work program includes €125 million for developing next-generation main battle tanks with enhanced survivability, improved firepower, reduced crew requirements, and potential unmanned operation. With existing EU tank fleets aging, developing and testing new MBT technologies is critical to maintaining a technological edge, the Commission said.
€100 million is allocated for high-end endo-atmospheric interception, building on prior efforts to advance key technologies to technology readiness level 6 and to develop demonstrators covering interceptor airframes, propulsion, and lethality.
An indicative €68 million will also be directly awarded—without a new call for proposals—to continue developing and testing a basic hypersonic glide vehicle demonstrator under EU secrecy requirements. Companies involved include MBDA, Airbus, Diehl, Hensoldt, Kongsberg, Indra Sistemas, and Saab.
Additionally, €90 million will fund studies and prototypes for medium-sized, semi-autonomous surface vessels designed to protect coastal waters, with technology adaptable for future naval missions.
Other 2026 programs are set to receive €20–30 million each, covering projects such as a 25–35 kN turbofan engine for unmanned loyal wingman aircraft, radar systems for tracking unmanned hypersonic vehicles, automated air-to-air refueling, AI-driven “enhanced cognitive” electronic warfare systems, and multiple rocket launchers.
