The EU project, dubbed as EDOS (environment for the development and distribution of free software), calls for the creation of software development and management tools that shorten development cycles and lower the costs for large-scale open source projects like Linux.

Two tools are initially being earmarked for development – an automated software quality testing suite and a distributed P2P application system for sharing software components.

In total the EU has forked out $4.5 million to a consortium of European research institutions comprised of the University of Zurich, the French National Institute for Research in Computer Science and Control (INRIA), Tel-Aviv University, University of Geneva and software makers SOT in Finland, and Mandrakesoft SA and Nuxedi SARL in France.

The EDOS project is planned to last two and a half years. Deliverables are expected every six months.

The funding is part of an EU drive to make European software development more competitive in the global market. Open source software is being promoted by several European governments as a way to counter the outsourcing of software development to countries like India and China.