PESCO is closely connected to the new Coordinated Annual Review on Defence (CARD) and the European Defence Fund (EDF), as well as to the revised 2018 Capability Development Plan (CDP) and its 11 EU Capability Development Priorities jointly identified by Member States. All of them are complementary and mutually reinforcing tools supporting Member States' efforts in enhancing defence capabilities:
- the revised CDP identifies the capability priorities Member States should focus their common efforts on;
- CARD provides an overview of existing capabilities in Europe and where opportunities for cooperation exist;
- PESCO offers options how to plan and bridge capability gaps in a collaborative manner;
- and the EDF provides financial incentives for Member States to foster defence cooperation from research to the development phase of capabilities including prototypes through co-financing from the EU budget. PESCO projects may benefit from increased EU co-financing, which could amount to 30% - instead of 20% - for prototypes.