A €10 million budget will be used to co-finance the participation of Cypriot entities in research and development projects under the European Defence Fund (EDF), the government announced on Friday.

“The aim is to strengthen the participation of Cypriot actors in the annual EDF calls, in areas of strategic interest, and to enhance competitiveness and innovation capacity at both the national and European level,” the announcement read.

The funding will be available to legal entities, including businesses, academic institutions and research organisations of all sizes, provided they participate in the EDF programme and have signed a funding agreement with the European Commission.

The support will take the form of direct payments to cover gaps in European grants.

State Aid Commissioner Stella Michaelidou approved the budget on September 12.

The project is set to be implemented by the end of June 2027 and will be overseen by the defence ministry.