Selim Ibraimi- We have heard very little about the European Defence Agency (EDA). Therefore, for our readers, taking advantage of the latest publication on the defence expenditure of the Member States, we will also learn about the purpose, structure, and long-term plans of the EU defence agency.
Like many European agencies that play a high and primary role in the EU, one of them is the European Defence Agency, which has several functions and tasks. The European Defence Agency was created in 2004 to promote defence cooperation in the EU.
The agency is based in Brussels. The European Defence Agency was created following a decision of the EU Council of Ministers to support the Member States and the Council of the EU in their efforts to improve European defence capabilities in the field of crisis management and to support the European Security and Defence Policy.
The founding document states that the EDA helps member states agree on what their armed forces really need by jointly defining capability development priorities.
“We help review capability stocks, identify gaps, and how to fill them. Then, through a mechanism called “Permanent Structured Cooperation”, or PESCO, we help countries develop new projects together,” the agency’s founding document states.
The agency’s report was recently published, showing significantly higher defense spending compared to previous years.
According to the report, in 2025, EU countries will spend 418 billion euros, 20 percent more than the year before.
The report also shows that 23 non-EU member states spent at least 2 percent of their GDP on defense in 2025, while overall defense investment exceeded the EDA benchmark, accounting for more than 32 percent of total defense spending.
EDA Executive Director Andre Denk said that EU member states are making unprecedented investments in defense, with spending projected to reach up to 547 billion euros by 2029.
“Combined with the instruments mobilized at EU level under the ‘Defense Preparedness 2030’ initiative, these investments should strengthen Europe’s defense capabilities, expand industrial capacity, and increase readiness and resilience,” he said.
The EDA has several initiatives in its mission, but we will list three main ones:
The “Coordinated Annual Review on Defence” (CARD) supports member states in their efforts to implement the capability development priorities agreed by the EU.
According to the document, CARD is a two-year cycle synchronized with the “Permanent Structured Cooperation” (PESCO) and the “NATO Defence Planning Process” (NDPP).
“Permanent Structured Cooperation” (PESCO) is more about security and defence policy. The initiative was established by a decision of the EU Council in December 2017. The initiative, according to the document, “provides a legal framework to plan, develop and invest together in joint capability projects, as well as to increase the operational readiness and contribution of the armed forces”.
Another important initiative related to EU military funds is called the “European Defence Fund” (EDF), with a budget of 7.953 billion euros for the period 2021-2027.
The fund is tasked with strengthening the technological aspect and developing the military industry of European countries.
Of this amount, 2.7 billion euros have been allocated to support defense cooperation, and 5.3 billion euros to finance projects for the development of military capabilities of EU countries.
The overall budget of the European Defense Agency for 2026, worth 68,600,000 euros, was approved by the EDA’s Management Board in December 2025.
Kaja Kallas is the Director of the European Defense Agency, in her role as High Representative of the EU for Foreign Affairs and Security Policy.
She has been in this position since December 1, 2024. Diplomat Kaja Kallas heads the Agency’s Management Board. The European Defence Agency also carries out activities and projects with Balkan countries and Ukraine, including the countries of the former Eastern Bloc.
There has been strong criticism between major European countries and the US since 2024. The US administration has criticized EU and NATO member states for not spending much on defense. In recent years, according to reports, EU countries have been spending more and planning large military projects.
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