More than one billion euros will be dedicated to collaborative research and development projects in the field of defence. Luxembourg companies can also participate.
Jean-Michel Gaudron
On 29 January, the European Commission adopted the fifth annual work programme of the European Defence Fund (EDF). It has a budget of more than €1 billion that will be dedicated to collaborative research and development projects in the field of defence, covering the 5 operational military domains of air, sea, land, space and cyberspace.
"The overall budget of €8 billion allocated to the European Defence Fund for the 2021-2027 period represents significant financial support for all research projects related to critical areas of defence," said Hélène Massard, Deputy Director at the Luxembourg Directorate of Defence, in charge of the defence industry and economic return. She shared insights during the European Defence Fund Info Day organised on Monday 3 February by Luxinnovation in collaboration with the Directorate of Defence.
Nine competitive calls for projects have been launched, covering 33 key topics such as ground combat, space, air and naval combat, but also energy resilience and environmental transition. These calls for projects include research and development actions, as well as targeted non-thematic calls for SMEs and research centres.
"Since its launch in 2021, the European Defence Fund's calls have evolved to allow more companies to participate. The figures speak for themselves: there were 9 Luxembourg companies involved in 13 projects in 2021. There were 20 in 28 projects in 2024," said Ms. Massard. "This clearly shows the increasing role of Luxembourg's players in the European defence strategy."
Luxinnovation supports companies to understand exactly what the European Commission expects of them. Rebecca Damotte, Luxinnovation
As mentioned by Aziliz Guérin, Defence Advisor, Attaché of the Defence Directorate at the European Defence Agency and the EU's Defence Industrial Programmes, the European Defence Fund finances research and development projects, but for development projects, co-financing from the member state of the entity is required, as the Commission does not cover all eligible costs.
"But we have to keep in mind that the process is long and complex and that the funding does not come before a period of 18-24 months."
The publication of the 2025 work programme and the calls for the European Defence Fund on 29 January marks the beginning of a process marked by several key stages. Starting with the publication and official opening of the various calls on the European Union's funding and tenders portal, which is the entry point and the single electronic data interchange space for candidates.
"Then there will be the European Defence Fund Info Days event in Brussels on 2 and 3 April," says Rebecca Damotte, Defence Technology and Innovation Advisor at Luxinnovation. "It is crucial for interested companies to participate, in order to better understand the calls for projects, the submission process, the eligibility criteria and the types of funding available. They will also be able to meet directly with potential partners of the consortia being created."
There will be also an online “Matchmaking day”, organised on 12 March 2025 at 11.00 by the “Enhancing Opportunities for All” (EOA) consortium. It will offer the Defence and Security industry players the opportunity to meet and discuss opportunities in relation to the European Defence Fund.
Since 2020, Luxinnovation has been operating under a mandate issued by the Luxembourg Directorate of Defence, with a view to creating a security and defence industry community in Luxembourg's priority sectors, but also to integrate Luxembourg industry and research into the European defence value chain and facilitate their access to EU and NATO innovation and procurement programmes.
Companies have the opportunity to take advantage of the capacities within the Luxembourg community for their projects. Alexander Link, Luxinnovation
"As a national contact point, Luxinnovation supports companies, enabling them to understand exactly what the European Commission expects of them, but also to exchange with other potential partner companies in consortia projects," says Ms Damotte. This relates to the dissemination of information about funding opportunities, application processes or project requirements; but also the support of applicants in preparing their proposals and facilitating networking and collaboration between national and European stakeholders.
The European Defence Fund is not just an R&D programme: it supports the development of the EU's future defence capabilities. "The use of this fund as a launching pad for procurement is essential to increase the readiness of Luxembourg industry for defence technological capabilities," says Alexander Link, Defence Technology and Innovation Coordinator at Luxinnovation.
Integrating a European Defence Fund project will increase the visibility of companies, create opportunities to explore new markets and help them establish partnerships. Hélène Massard, Directorate of Defence, Luxembourg
In this context, partnerships are obviously essential for the EU's defence, and this starts at the national level. "Luxembourg's security and defence industry community has grown considerably," says Mr Link. "Companies therefore have the opportunity to take advantage of the capacities within the Luxembourg community for their projects. But partnerships at the international level are also essential. This is why Luxinnovation and the Directorate of Defence provide many opportunities to facilitate relations with the European Union's prime contractors and the Ministries of Defence of the Allied Member States."
For this reason, the Directorate of Defence actively encourages Luxembourg industry and research organisations to engage in such R&D programmes. "Such participation will not only stimulate the growth of the Luxembourg security and defence community, but will also facilitate the integration of Luxembourg companies into the European defence value chain", says Ms. Massard. "This will increase their visibility, create opportunities to explore new markets, and help them build partnerships."
Photos: Luxinnovation
