In a significant move toward bolstering defense capabilities within the European Union, the European Council and the European Parliament reached a consensus on November 5 regarding defense investments. This agreement aims to integrate existing European research and innovation programs with technologies that have dual-use in military applications. Moreover, a noteworthy development is the inclusion of Ukrainian companies, which are now eligible to engage in projects linked to the European Defense Fund (EDF), enhancing their collaboration with the European defense technological and industrial base.

This agreement, backed by the European Commission, underscores a concerted effort across Europe to streamline and enhance defense investments. The EU members are optimistic that these discussions will play a pivotal role in strengthening their national security. By increasing defense spending and improving coordination, the EU aims to alleviate the pressures on its defense industrial base and advance the capabilities of its military forces.

Launched in 2021, the European Defense Fund was established to promote cooperation among EU-based companies, fostering investments that propel European defense initiatives. The EDF supports the development of innovative defense technologies and equipment, a mission that has gained urgency in light of Russia’s aggressive actions in Ukraine since February 2022. The EU has been steadfast in its commitment to prioritize national security while offering extensive support to Ukraine, supplying it with Western weaponry, technology, and defense equipment.

European Defense Efforts During Russia’s Full-Scale Invasion Of Ukraine

However, the EU’s resolve to aid Ukraine has come with its share of challenges. The ongoing conflict revealed gaps in the EU’s capacity to rapidly supply advanced materials to Ukraine without compromising its own defense reserves. This situation has highlighted disparities in the contributions of the 27 EU members regarding defense efforts and support for Ukraine. According to the Kiel Institute for the World Economy, countries like Denmark, Germany, the Netherlands, and Sweden have provided substantial defense assistance to Ukraine and invested in their own defense capabilities. In contrast, nations such as France, Italy, and Spain have faced difficulties in making significant defense contributions, sparking discussions around equitable burden sharing within the EU.

The EU is also grappling with how best to deliver defense aid to Ukraine while balancing its own national security needs. Financial constraints have been a point of contention, with countries like Italy and Spain expressing concerns over the financial burden of increasing defense spending and the costs associated with supporting Ukraine.

In response to these challenges, the EU has intensified its collaboration with Ukraine in defense research, development, and innovation. A key initiative in this partnership is the establishment of the European Defense Innovation Office in Kyiv, facilitating closer cooperation and shared progress in defense technology.

EU-Ukraine Defense Collaboration

To address concerns about national security and defense, the EU has partnered with Ukraine in defense research, development, and innovation. One method has been through the creation of the European Defense Innovation Office in Kyiv.

“Establishing EUDIO in Kyiv was a deliberate strategic choice,” Dr. Justina Budginaite-Froehly, a Nonresident Fellow with the Atlantic Council, told me in an interview. “The office assists Ukrainian companies in accessing EU funding frameworks—such as the Security Action for Europe and, after recent political approval, also the European Defense Fund—while ensuring that Ukraine’s battlefield-tested innovations feed directly into Europe’s defense-industrial base. By transforming frontline ingenuity into scalable solutions on the European level, EUDIO supports Ukraine’s defense efforts and strengthens Europe’s defense readiness. Ultimately, EUDIO’s presence in Kyiv reflects the EU’s recognition that supporting Ukraine’s defense is key to protecting Europe’s own security. It turns innovation into a reciprocal exchange, with Europe gaining from Ukraine’s experience just as Ukraine benefits from its strengthening ties with Europe.”

Created in 2024, EUDIO aims to integrate Ukraine’s defense industry into the EU’s defense industrial landscape. Meanwhile, the Ukrainians have had the opportunity to showcase aspects of their defense innovation to the Europeans during Russia’s full-scale invasion, where the Ukrainians have educated and informed the Europeans about the development of new technologies. It has also led to the sharing of information between these two parties.

“[EUDIO] is a huge win for Europe,” Dr. Alexandra Chinchilla, an Assistant Professor of International Affairs at Texas A&M University, told me in an interview. “No one has more experience battle-testing defense technology than Ukraine. Particularly when it comes to drones and electronic warfare, Ukraine is on the technological forefront and has unmatched knowledge about what works against Russia. The European defense industry has a lot to gain from closer collaboration with Ukrainian firms.”

Throughout the collaboration between the EU and Ukraine via EUDIO, the EU has provided Ukraine with modern mine-clearing machines and demining equipment. These devices have allowed the Ukrainians to detect and clear landmines across their country. Once the mines are safely removed, the Ukrainians utilize this land for agricultural purposes and reconstruction. Having obtained this equipment and technology from the EU, the Ukrainians have now started to develop their own demining equipment.

Meanwhile, Ukraine has contributed its own insights to the EU. Having successfully developed and used drones to combat Russia’s ongoing invasion, as well as striking Russian military targets, such as Russia’s naval fleet on the Black Sea, ammo depots in Russian-occupied regions of Ukraine, and energy facilities deep within Russian territory, the Ukrainians are educating the Europeans about drone warfare. The EU has even committed to spending $2 billion on Ukrainian drones as the Europeans seek to learn more from Ukraine.

These examples of technology sharing could alleviate burdens on the defense industrial complex within the EU and Ukraine. Sharing EU information and technology on defense equipment would enable Ukrainians to manufacture weapons and equipment in their own factories, thereby reducing production time and delays, as the materials would be produced in-house rather than sourced from various parts of Europe. The Ukrainians would also be able to make these devices and equipment at lower costs. For example, the Ukrainian-made FP-1 “Fire Point” drone costs $55,000 to produce. Meanwhile, a drone created within the EU costs $700,000. Despite the drastic cost difference, Ukrainian drones have proven to be very effective.

Now, with the European Council, the European Parliament, and the European Commission agreeing to allow Ukrainian businesses to access the EDF, this will further strengthen the EU and Ukraine. It will encourage interoperability between the two parties, thereby enhancing integration between European and Ukrainian defenses. This cooperation will enable both the EU and Ukraine to have the latest weapons, technology, and equipment, thereby further strengthening the security of the European continent. Finally, it will reaffirm the EU’s commitment to supporting Ukraine.

“By harmonizing procurement rules, governance structures, and long-term security priorities, these initiatives [between the EU and Ukraine] foster broader legal and strategic alignment between Ukraine and Europe, thereby transcending the temporary nature of military aid,” Budginaite-Froehly told me in an interview. “It is crucial to stress that this integration is mutually beneficial: while Ukraine gains practical anchoring within Europe, European states gain access to Ukrainian innovation, operational experience, and lessons drawn from real-time battlefield experience. Together, these three strands—operational, industrial, and strategic—are reshaping Europe’s defense architecture into a more agile and forward-looking system with Ukraine as its integral part.”

Many Europeans have previously commented on the need to address burden sharing and defense issues across the European continent. They have also begun to prioritize the national security of Europe. Engaging with Ukraine, a country actively fighting in a war and experimenting various technologies to strengthen its defense, may be the solution the EU needs to establish a strong and defense-ready European continent.