The funds will be fast-tracked "in order to start work as soon as possible," the European Commission said, with the latest figures showing nearly 4,900 dead and 10,000 cases in Liberia, Sierra Leone and Guinea.
"We're in a race against time on Ebola and we must address both the emergency situation and at the same time have a long term response," Commission head Jose Manuel Barroso said.
The Commission, the EU's executive arm, said it was working with industry to develop vaccines, drugs and diagnostics for Ebola.
The EU is meanwhile contributing medical staff and facilities on the ground, with Ebola likely to be a major talking point at an EU leaders' summit today and tomorrow in Brussels.
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A draft summit communique obtained by AFP said the EU would appoint an "Ebola coordinator" to work between Brussels, member states and international organisations.
The World Health Organisation is coordinating efforts to tame Ebola, for which there is currently no vaccine nor cure, only therapeutic treatments.