Explainer
Five EU defense funding instruments now total over 250 billion euros. Here is who can actually access EDF, EDIP, SAFE, and AGILE, and what changes for companies outside the EU.
Romania
Romanian technology company OVES Enterprise and Ukraine's EDRONE will jointly manufacture military drones in Cluj-Napoca, creating an initial production capacity of 1,000 systems per month with plans for significant expansion.
YIT
Finnish construction company YIT has secured a contract valued at approximately €30 million to build a Leopard 2A8 assembly and maintenance facility in Lithuania. The project will expand the country's defense industrial infrastructure and support the long term sustainment of its future tank fleet.
Five EU defense funding instruments now total over 250 billion euros. Here is who can actually access EDF, EDIP, SAFE, and AGILE, and what changes for companies outside the EU.
XTEND has completed the integration of Latvian robotics company Atlas, expanding its European manufacturing footprint and XOS robotics ecosystem. The company said the move strengthens its ability to support NATO and EU customers through regional production and engineering capabilities.
Drones and counter-drones are fully funded. Missiles, subsea, space, propulsion, and biodefense are the seven defense-tech investment categories still open in 2026, several map directly onto Western Balkans capability.
Rising European defense spending is creating new opportunities for automotive manufacturers and logistics providers to support military supply chains.
Recent phishing, impersonation, and repeated login approval attempts against a European defense investor highlight the growing identity risks facing defense companies, executives, and suppliers.
A Lithuanian civic technology project is building a distributed acoustic network from unused Android smartphones. The system is intended to provide an additional warning layer against low-flying drones, including Shahed-type platforms.
Daily defense news, analysis and industry intelligence from Central and Eastern Europe and Southeast Europe.
Bulgaria's Ministry of Defence is assessing second hand fighter aircraft as it seeks to maintain air policing capabilities while awaiting the arrival and operational readiness of its remaining F-16 Block 70 fleet. No procurement decision has been made.
Defence Hub CzechInvest has become a member of the European Defence Alliance through Bpifrance and its EuroQuity matchmaking platform. The partnership expands access for Czech defense startups and SMEs to investors, European industrial partners, and cross-border collaboration opportunities.
Ukrainian defense technology company General Chereshnya has received a government license to participate in Ukraine's private air defense initiative. The move enables the company to provide integrated air defense capabilities for businesses and critical infrastructure.
Lithuanian body armor manufacturer KOVO Armor has been selected to supply ballistic plates to security services provider Ekskomisarų Biuras. The agreement highlights growing demand for domestically produced protective equipment among Lithuania's security sector.
XTEND has completed the integration of Latvian robotics company Atlas, expanding its European manufacturing footprint and XOS robotics ecosystem. The company said the move strengthens its ability to support NATO and EU customers through regional production and engineering capabilities.
Croatian drone manufacturer Orqa expects to reach an annual manufacturing capacity of 500,000 drones and components by the end of the year while expanding its FPV training activities across several European armed forces.
Bosnian defense manufacturer Binas remained profitable in the first half of 2026 despite a decline in revenue and earnings compared with the same period last year. The results mark the company's first significant slowdown after several years of rapid growth.
The UK Ministry of Defence has selected the Tekever AR5 unmanned aerial system to replace the British Army's Watchkeeper surveillance drones under a program valued at up to £400 million.
Lithuania welcomed a delegation representing eight Japanese companies to explore new opportunities for defense industrial cooperation. The meetings focused on innovation, manufacturing, investment, and the development of long-term partnerships between Lithuanian and Japanese industry.
Polish defense technology startup PERUN has secured funding under the National Centre for Research and Development's PERUN program to accelerate the development of military technologies. The award highlights Poland's continued investment in domestic innovation for future defense capabilities.
NATO is strengthening its role in coordinating defense industrial production as Allies increase military spending and seek to expand manufacturing capacity. The Alliance is introducing new mechanisms to improve procurement coordination, industrial engagement, and long-term production planning.
Drones and counter-drones are fully funded. Missiles, subsea, space, propulsion, and biodefense are the seven defense-tech investment categories still open in 2026, several map directly onto Western Balkans capability.
