Council and European Parliament strike a deal on boosting the production of ammunition

7 July, 2023 Production of artillery rounds at one of the Rheinmetall factories. Photo credits: Rheinmetall NIOA Munitions The Council of the European Union has agreed with the European Parliament on a project on boosting the production of ammunition in the EU.

A preliminary agreement was reached on the regulations of the Act in Support of Ammunition Production (ASAP) for Ukraine and EU member states. The corresponding statement was made public on the website of the Council of the EU on Friday. The agreed regulation will urgently mobilise EUR500 million from the EU budget to support the ramp-up of the manufacturing capacities for the production of artillery ammunition and missiles.

At the same time, a plan will be implemented to ensure a long-term increase in the ammunition production in Europe for Ukraine and the countries of the European Union.

Production of ammunition. The photo is illustrative

"Thanks to today's record time agreement on ASAP the EU will bolster and speed up Europe's own production of ammunition and missiles. This is yet another proof of the EU's unwavering commitment to supporting Ukraine, strengthening the EU's defence technological and industrial base, and ultimately ensuring the long term security and defence of EU citizens," Margarita Robles, Spanish Minister of Defence said.

Now the agreement must be approved by the Council of the EU and the European Parliament. It is expected that it will be signed and enter into force by the end of July. The agreed rules introduce an 'instrument' through which the EU will financially support the reinforcement of the EU industrial production capacities for ammunition and missiles throughout the supply chains.

Such financial support 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. Furthermore, the new rules will facilitate access to finances for EU companies in the field of ammunition and missile production, potentially through a special fund.

Polish 155mm shells from Polska Grupa Zbrojeniowa. Photo credits: grupapgz.pl

As previously reported, at the beginning of June this year, the European Parliament supported the proposals of the European Commission to increase the European production of ammunition and missiles.

This plan also provides for speeding up the delivery of ammunition to Ukraine.

On May 3, the European Commission approved a legislative proposal to allocate 500 million euros for the urgent strengthening of the potential of the EU defense industry.