Defence – Image by shauking from Pixabay
(BRUSSELS) – EU Parliament and Council negotiators informally agreed Thursday on plans to increase EU production of ammunition and missiles to address the current shortage, with a budget of EUR 500 million.
The ASAP comes in response to a Ukrainian request to the EU to supply 155 mm-calibre artillery rounds and the agreement of the Council on 20 March 2023 on a three-track proposal on ammunition. Member states have been invited to urgently transfer ammunition from their own stocks to Ukraine (Track 1). EU countries have agreed to jointly procure 1 million ammunition rounds (Track 2). Track 3 aims to ramp up production capacity in the European defence industry.
ASAP will ensure that the EU can efficiently ramp up its production capacity of ammunitions and missiles. Thanks to ASAP the Union’s defence industry will be able to produce more and faster as the proposed Regulation will support the industrial reinforcement throughout the supply chains of ammunition and missiles in the EU. It is a direct response to the March European Council’s call to urgently deliver ammunition, and if requested missiles, to Ukraine and to help Member States refill their stocks by introducing targeted measures.
Financial support up to 500 million will be provided in the form of grants to various types of actions, contributing to the efforts of the European defence industry to increase their production capacities and tackle identified bottlenecks. For instance, ASAP could support the extension or modernisation of existing lines, creation of new lines, plans to repurpose old ammunition, securing value chains and addressing skills gaps.
The regulation also foresees that up to 50 million will serve as a guarantee for the creation of a ‘Ramp-Up Fund’, delivering financial support under the form of loans, facilitating access to finance for the European defence industry involved in the production of ammunition and missiles.
The political agreement reached by the European Parliament and the Council is now subject to formal approval by the European Parliament and the Council.
Text of the ASAP regulation proposal
