Cyprus’ Commissioner for State Aid Control, Stella Michailidou, has approved a €10 million scheme to co-finance the participation of Cypriot entities in Research and Development projects under the European Defence Fund (EDF). The scheme will run until June 2027.

According to a press release, the Commissioner issued on 12 September 2025 her decision regarding the measure titled “Co-financing Scheme for the Participation of Cypriot Entities in Research and Development Projects of the European Defence Fund (EDF).” The Ministry of Defence will serve as the competent authority for its implementation.

The measure’s total budget amounts to €10 million, with an application period ending on 30 June 2027. Its objective is to strengthen the participation of Cypriot organizations in the EDF’s annual calls in areas of strategic interest, enhance the competitiveness and innovative capacity of Europe’s technological and industrial base in the defence sector, and expand the national base. At the same time, the scheme seeks to promote cooperation with other EU member states through cross-border defence development projects.

Funding will be provided in the form of direct grants, covering part or all the financing gap not covered by EU funds. Eligible beneficiaries include legal entities such as businesses, academic institutions, and research organizations of any size, provided that they participate in the EDF program and they have signed a grant agreement with the European Commission.