We count on the interest of the Polish industry in development opportunities that the European Defence Fund offers to them. Therefore, we encourage our entrepreneurs even more strongly to co-operate with partners from abroad, to create international consortia with them that would apply for financial support from the EDF and then to pursue various projects together

- stresses the Deputy Minister of Development, Labour and Technology Robert Tomanek.

The budget of the European Defence Fund (EDF) for the years 2021–2027 is 7.95 bn EUR, including 2.65 bn EUR for research and 5.3 bn EUR for development works in the form of European industrial co-operation projects. The first program of the EDF's works will be announced when the regulation regarding EDF enters into force. The submission of project applications is scheduled for June 2021.

In order to participate in projects of the fund, enterprises must have guaranteed support in all phases of the application process.  In the Ministry of Development, Labour and Technology, an interministerial Group for the Support of the Participation of the Polish Defence Industry in the European Defence Fund was established in order to provide an important platform for co-operation of the Polish administration in favour of the development of Polish industry.

Making use of their good industrial relations in the EU and the innovativeness of industrial processes, Polish companies can apply for participation in consortia in the EDF on their own or be invited to them by foreign partners.

In its programming documents, the EDF takes into account joint research and development challenges elaborated by Member States and the European Commission in the EU defence sector as categories of projects in which international consortium will submit project applications. The next stage is the associating process between consortia, which encompasses actions of state administration systems and industry itself. In the case of developmental phase projects, Polish companies can count on support from the Ministry of National Defence (MND) and on financial aid when the MND declares the will to make joint efforts to utilise technology on the EU level and to acquire results of the projects that fully fit into priorities of technical modernisation of the Polish Armed Forces.

Polish companies, particularly SMEs (not only those experienced in the defence sector), will be allowed to participate also in those developmental phase projects where the ordering party will be the MND of another state or any other ordering institution interested in the acquisition of modern solutions and technologies.

According to analyses of the European Commission, a large part of SMEs is interested in taking part in developmental phase projects, because this phase creates a quick product launching path. Many Polish innovative SMEs have a chance to participate in consortia and can ensure the success of the EDF. The MDLT supports Polish companies in these activities.

Basis of operation of the European Defence Fund (EDF)

Until now, the EDF was implemented in the phase of pilot projects for the years 2017–2020 in the form of Preparatory Action on Defence Research (PADR) and the European Defence Industry Development Program (EDIDP).

The aim of the EDF is to strengthen the competitiveness and innovativeness of the European technological–industrial base of the defence sector throughout the EU by supporting joint operations and cross-border co-operation between legal entities in Member States, particularly small and medium-sized enterprises and mid-cap companies, and by reinforcing and improving the flexibility of the supply chain and the value chain in the defence sector. An important factor is the extension of cross-border co-operation between legal entities and the promotion of the better utilisation of the industrial potential in respect of innovation, research and technological development at every stage of the life cycle of defence products and technologies.
Funds for both parts of the EDF will come from the EU’s budget, the first of them being intended for joint research project subsidies. This part is financed in 100% and does not oblige entities participating in consortia to look for support. The projects are financed in the form of grants. The second part of the Fund is intended for the co-financing of development projects (e.g., performance of feasibility studies, product design and testing, development of equipment and technology prototypes, qualifications and certifications). Subsidies amounting to 20-65% (or even 90%) from the EU budget will be granted according to the principle of co-financing of other costs that participants in the consortium will ensure within the scope of their project activities.

Competences of the Group for the Support of the Participation of the Polish Defence Industry in the EDF

The tasks of the Team include:

• recommending solutions to the Minister within the scope of projects financed from the European Defence Fund in connection with the economic and technological development of the Polish defence industry, particularly concerning small and medium-sized enterprises;
• informing the Minister about topics included in programs of works of the European Defence Fund that have an impact on the increase of innovativeness or competitiveness of the Polish defence fund in its technological or industrial aspects;
• proposing actions that would support the participation of Polish entrepreneurs in projects financed from the European Defence Fund by preparing draft government documents concerning the support of the Polish defence industry and by suggesting methods of acquisition of financial aid for project activities;
• recommending solutions to the Minister with regard to guarantees for the European Commission if an entrepreneur having its seat in the Republic of Poland and controlled by a third country or by an entity from a third country is qualified as a beneficiary in a project financed from the European Defence Fund;
• monitoring courses of action related to the economic and technological development of the Polish and European defence industry;
• informing entrepreneurs participating in innovative defence projects closely connected with double-use technologies, including those financed from the European Defence Fund, about possibilities of gaining financial support from the InvestEU program and other EU instruments aimed at the development of the Polish defence industry;
• creating conditions for the exchange of knowledge and experience between administration, enterprises, scientific institutions, social partners, including trade unions, organisations of employers and other NGOs with regard to the activities of the Polish defence industry.