EU governments want to attract more investment in defence, but a lack of public funding and collaboration is holding industry back, business leaders said on Wednesday

Companies have until November to apply to take part in projects ranging from unmanned aircraft to secure space communications

The European Defence Fund was set up to support research and development, but it could be rolled into the proposed defence industrial programme, Timo Pesonen, director general for Defence Industry and Space, told MEPs

A €1.5B fund will help to scale up research projects and build supply chains, while a new legal structure will enable member states to facilitate cooperation across the whole life cycle of defence capabilities

The Commission president set out her vision for a new EU military-industrial-academic complex in a speech to MEPs on Wednesday

Stepping up investment in defence was on the agenda as EIB president Nadia Calviño met European finance ministers

Heads of state approved the changes in Brussels today, after Germany rejected a Commission proposal to put an additional €100B into the EU’s multiannual budget. The deal frees up a €50B aid package for Ukraine

The fund is intended to stimulate investment in SMEs that are working to develop novel defence technologies

The EU money will incentivise joint purchases of military equipment by member states and help SMEs get to market. But the fund runs out in mid-2025 and plans for a longer term strategy are held up