7.2

More Estonian companies join classified European programmes

  • Interest among Estonian companies in classified projects is growing rapidly, with 19 firms already participating in defence industry programmes.

  • Estonian companies currently have access to seven classified European Commission programmes.

  • The National Security Authority within the Estonian Foreign Intelligence Service supports companies in navigating classified information protection requirements for projects.

The European Commission has developed several large-scale classified programmes for companies from the EU and partner countries. Designing a security framework for any classified project is a complex process. The large-scale EU programmes benefit from the Commission’s standardised security framework, reducing administrative burden and streamlining both project preparation and oversight.

Classified information need not intimidate companies, as the National Security Authority within the Estonian Foreign Intelligence Service is available to clarify the requirements for protecting classified information and to create a security framework that is easy to understand and follow for all project participants.

Since 2015, several classified programmes focused on innovation and development in the defence industry have been launched at the Commission’s initiative:

  • 2017-2019: Preparatory Action on Defence Research (PADR)
  • 2019-2021: European Defence Industrial Development Programme (EDIDP)
  • 2021 onward: European Defence Fund (EDF).

The EDF projects have a total budget of €8 billion, allocated until 2027.

To date, 19 Estonian companies have participated in 46 EDIDP and EDF projects, with several companies involved in multiple projects. Estonian companies stand out as active participants, particularly in cybersecurity-related projects.

They also contribute to projects focused on developing components for larger weapon systems – including warships, tanks, armoured vehicles, drones, radars, navigation systems and autonomous weapon systems – as well as artificial intelligence implementations and projects advancing innovative and smart military capabilities. Several Estonian companies have even acted as consortium coordinators in EDIDP and EDF projects, effectively leading the projects.

Table 1. Classified projects with Estonian participation (excluding projects where Estonian companies joined at a later stage or participated as subcontractors)

Participants in EDF projects enter into grant agreements to contribute to specific capability development efforts. Projects typically last two to five years, though activities may continue under follow-up projects. Most projects are classified at the lowest level, which significantly simplifies access to classified information and its electronic handling and exchange. Some EDF projects do not involve classified information but still benefit from the support framework for large-scale projects. The final classification level is determined after contracts are signed, with participants given time to meet requirements for protecting classified information.

The European Commission has long funded research and innovation projects. For example, the Horizon 2020 programme (2014-2021) and its successor Horizon Europe (from 2021 onward) include classified projects, though the majority are not classified. Estonian involvement in Horizon’s classified projects includes approximately ten initiatives, with some led by Estonian participants. Key areas include cybersecurity, critical infrastructure and civil defence, as well as preventing terrorism and other crimes.

While the Commission has also launched other classified programmes, Estonian companies have shown less interest in these. A few Estonian companies have, however, participated in classified projects under different programmes. The Global Navigation Satellite System (GNSS) programme has now been integrated into the European Union Space Programme, which also includes classified projects within its other components, such as Copernicus, Galileo and GOVSATCOM. Classified projects are also open for application under the European Quantum Communication Infrastructure (EuroQCI) initiative and, less frequently, within the Digital Europe (DIGITAL) programme and the Connecting Europe Facility (CEF Digital) programme.

Programmes are continuously updated, and new classified initiatives are regularly introduced, offering opportunities for Estonian companies to participate. For example, in 2023, a €500 million programme was launched to support ammunition supplies to Ukraine under the Act in Support of Ammunition Production (ASAP), though Estonian companies were not involved in the first round. A €1.5 billion European Defence Industry Programme (EDIP) is also under development.

For more on industrial security and protecting classified information in the private sector, please refer to our 2024 annual report.

Estonian companies’ interest in classified projects is proliferating. Even participating in just one classified project provides valuable experience, making it easier and more encouraging to apply for future opportunities.

For more information, contact us at NSA@fis.gov.ee.