<h1>EU plans 1.5 billion euro defence program integrating Ukraine industry, boosting joint procurement, incentives and long-term defence budget</h1> The European Union is considering legislation to deepen defence industrial integration with Ukraine through a 1.5-billion-euro programme, including 300 million euros for a Ukraine Support Instrument and Ukrainian access to the EU Defence Investment Program. The proposal promotes joint procurement of defence equipment 'in, with and for Ukraine' and urges member states to source primarily from EU suppliers, with extra-EU purchases allowed mainly when justified by cost, performance, or delays. The European Commission plans to increase the long-term budget for defence and space to 131 billion euros and offer tax and financial incentives for cross-border defence projects, while simplifying and harmonising defence industry regulations.