The European Union’s (EU) defence-industrial policy has developed rapidly since the mid-2010s, with Russia’s war against Ukraine acting as a key accelerator. This chapter traces the historical evolution of EU initiatives and examines how recent crises have reshaped the Union’s role in this policy area. It shows how the European Commission has emerged as a central actor, advancing initiatives such as the European Defence Fund (EDF), EDIRPA, ASAP, and the new SAFE initiative, thereby strengthening Europe’s defence-industrial capacity. These measures reflect a broader shift from a market-driven to a security-driven rationale for integration. At the same time, the future of EU defence-industrial policy faces major uncertainties: the political will of Member States, long-term funding commitments, and the trajectory of U.S. engagement in Europe. While short-term procurement outside Europe risks undermining strategic autonomy, the EU’s regulatory and financial tools can reinforce NATO’s collective defence and enhance Europe’s capacity to safeguard its own security.