The EU’s new defence programme is joining the EEA Agreement, extending the European Defence Industry Programme (EDIP) to Norway, Iceland and Liechtenstein. The decision could give Norwegian defence companies access to EU funding to expand production capacity, strengthen European supply chains and increase military support for Ukraine.
The EEA Joint Committee decided on 10 July to incorporate the European Defence Industry Programme into the agreement. The move means that the programme’s rules will also apply to the three EEA EFTA countries.
For Norway, participation could support joint investments with EU countries in areas where Norwegian manufacturers already have an important role, including advanced military explosives and rocket engines.
“To be completely concrete, our participation in the programme means that Norway can, for example, work with the EU to increase the capacity to produce advanced military explosives and rocket engines in Norway,” Defence Minister (forsvarsminister) Tore O. Sandvik said.
“We know that these are capabilities Ukraine is requesting and that Norwegian producers play a key role here.”
EDIP opens EU funding to Norwegian defence companies
The inclusion of EDIP in the EEA Agreement will allow companies from Norway, Iceland and Liechtenstein to participate in the programme alongside businesses and public authorities from EU member states.
Norwegian defence companies will be able to apply for support to expand production capacity and participate in European industrial projects.
The EU has allocated €1.5 billion to EDIP. Norway plans to contribute approximately NOK 315 million (€29 million) to support the European and Ukrainian defence industrial base.
Funding calls for the European defence industry are expected in 2026 and 2027.
EDIP is intended to strengthen and modernise Europe’s defence industry, increase production capacity and improve the availability of military equipment. It also seeks to reduce fragmentation by encouraging countries to procure equipment jointly and cooperate more closely on industrial projects.
Norway could expand explosives and rocket production
The Norwegian government considers EDIP an opportunity to increase production in sectors that are important for both European security and Ukraine’s defence.
Norwegian manufacturers already produce ammunition, explosives, missiles and other military systems. Access to EU-backed projects could help them expand capacity more quickly and cooperate with companies elsewhere in Europe.
“European allies must do more to safeguard their own defence capabilities, and part of that means investing more in their own defence industry,” Sandvik said.
“EDIP will give Norway and the EU countries the opportunity to invest more in the capacity Ukraine needs to continue its defensive struggle.”
The programme forms part of the EU’s broader effort to ensure that Europe can take greater responsibility for its own defence while maintaining long-term military assistance to Ukraine.
EDIP will strengthen defence supply security
In addition to financing production, EDIP introduces new mechanisms to prevent and manage shortages of strategically important defence products.
The European Commission will be responsible for monitoring the production of equipment and components that could become critical during a supply crisis.
A new Defence Industrial Readiness Board will bring together the European Commission, EU countries and participating EEA EFTA states. Norway will therefore have a seat on the board.
The body will exchange information and identify threats to European defence supply chains at an early stage. It will also be able to declare a supply security crisis.
Such a declaration could allow authorities to prioritise certain orders and request that companies redirect civilian production capacity towards military needs.
“The defence industry is an integrated part of European defence capabilities,” Sandvik said.
“Tools to prevent supply security crises strengthen European preparedness in the event of crisis and war. Norway’s place at the table with the EU countries enables us to contribute to a sound understanding of the situation and to ensure that the EU’s new crisis tools are used carefully.”
Norway’s Parliament must approve participation
The EEA Joint Committee incorporates EU legislation into the EEA Agreement through decisions agreed by the European Union, Norway, Iceland and Liechtenstein.
The EDIP regulation will be added to Protocol 31 of the agreement, which covers cooperation in specific areas outside the four freedoms of the European single market.
Norway has entered a constitutional reservation. This means the decision still requires the consent of the Norwegian Parliament (Stortinget) before it can fully take effect in the country.
The Ministry of Defence (Forsvarsdepartementet) plans to submit a consent proposition to Parliament in the autumn. The document will also outline the regulatory changes required for Norwegian participation.
The incorporation of EDIP into the EEA Agreement further connects Norway to the EU’s developing defence industrial policy. It could provide new opportunities for Norwegian manufacturers while giving the country a greater role in European production, supply security and military support for Ukraine.
