European Parliament endorses defense procurement mechanism

12 September, 2023 European Union/EU. Illustrative photo The European Parliament voted for a new mechanism aimed at stimulating the defense industry and helping countries modernize their weapons.

This was reported by the press service of the European Parliament. The bill was passed by 530 votes, with 66 votes against and 32 abstentions. It now needs formal approval from the EU Council to become law.

"Today's vote marks a historic moment for EU defense, establishing the first EU instrument for joint procurement by member states. It will help them to refill their stocks, increase interoperability among our armed forces, strengthen our industry, and contribute to our unwavering support for Ukraine," co-rapporteur for the Foreign Affairs Committee Michael Gahler said after the vote. The new short-term instrument, abbreviated EDIRPA, already agreed with the EU Council at the end of June, will help countries meet their most urgent defense needs amid Ukraine's intensive care.

It should also increase the efficiency and competitiveness of European manufacturers. The European Parliament and the EU Council agreed on a budget of 300 million euros to finance this instrument. The EU will contribute up to 20% for each purchase of the expected value of the joint procurement contract - for each consortium of member states and associated countries.

To use these funds, companies with joint purchase contracts must be based in the EU or associated countries (including European Free Trade Association countries, that is, Iceland, Liechtenstein, and Norway). Countries that jointly buy military goods will also be able to agree to buy them together with Ukraine and Moldova.

EDIRPA will be an addition to the European Peace Fund, from which military assistance from member countries for Ukraine is now funded.

Recall that in September, the European Defense Agency signed the first agreements on the joint purchase of artillery shells for the needs of Ukraine.