The regulation establishes the European Defence Industry Programme (EDIP) to enhance EU defence capabilities through joint procurement and industrial cooperation. It aims to expand production capacities, secure supply chains, and increase the Union’s strategic autonomy. Special emphasis is placed on supporting Ukraine by strengthening its defence industry and integrating it into European supply chains. Financial resources will specifically target SMEs and mid-cap companies to boost innovation and competitiveness. The regulation builds on existing emergency programmes and creates long-term structures for a resilient defence industry.