The European Commission has expressed its satisfaction with the political agreement reached between the European Parliament and the Council of the European Union regarding the Regulation on supporting ammunition production (ASAP). This agreement includes a budget of €500 million to ensure the efficient ramping up of the EU’s production capacity of ammunition and missiles.
ASAP aims to support the European defence industry in increasing its production capacity and addressing bottlenecks throughout the supply chains of ammunition and missiles within the EU. The regulation is a direct response to the European Council’s call in March to urgently provide ammunition, and if requested, missiles to Ukraine, as well as assisting Member States in replenishing their stocks through targeted measures.
Under ASAP, financial support of up to €500 million will be provided in the form of grants for various actions aimed at enhancing production capacities and overcoming identified challenges. This may include extending or modernizing existing production lines, establishing new lines, repurposing old ammunition, ensuring secure value chains, and addressing skills gaps.
Additionally, the regulation includes provisions for up to €50 million to serve as a guarantee for the creation of a ‘Ramp-Up Fund’, offering financial support in the form of loans to facilitate access to finance for the European defence industry involved in ammunition and missile production.
ASAP will complement the recently agreed initiative called EDIRPA (European defence industry through common procurement), which encourages Member States to jointly procure critical and urgent defence products in response to Russia’s invasion of Ukraine.
The political agreement reached between the European Parliament and the Council is now pending formal approval by both bodies. The Commission is committed to swiftly implementing ASAP and will prepare a work program with the assistance of Member States in the Programme Committee.
Background: In July 2022, in response to Russia’s invasion of Ukraine, the Commission introduced the EDIRPA Regulation, aiming to reinforce defence industrial capabilities by supporting Member States’ cooperation in common procurement of critical defence products.
The urgent need for ammunition and missiles in light of the situation in Ukraine was recognized by the Council, which adopted a three-track approach in March 2023. As part of Track 1, Member States were invited to immediately transfer ammunition from their stocks to Ukraine. Simultaneously, Member States will jointly procure 1 million ammunition rounds under Track 2. To meet these demands, the European Union’s defence industry needs to increase production quickly, as accelerated by Track 3 and the ASAP Regulation.
On May 3, 2023, the Commission proposed the ASAP Regulation to directly support the “supply” side of the market by focusing on increasing the production of ammunition and missiles.
https://ec.europa.eu/commission/presscorner/detail/en/IP_23_3748