EU deal on 500M euro boost for production of ammo, missiles for Ukraine, EU countries
The Presidency of the Council of the EU has reached a provisional agreement with the European Parliament representatives on the Act in Support of Ammunition Production (ASAP), the Council of the EU said on July 7.
The agreed regulation will urgently mobilise 500 million euro from the EU budget (in current prices) to support the ramp-up of the manufacturing capacities for the production of ground-to-ground and artillery ammunition as well as missiles, the statement said.
“In doing so, it will implement the third track of the plan agreed by the Council in March 2023 to secure the long-term increase in European ammunition production to the benefit of Ukraine and EU member states.”
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 and value 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,” the statement said.
Furthermore, the new rules will facilitate access to finance for EU companies in the ammunition and missile field, potentially through the so-called “Ramp-up Fund”.
This fund is intended to make it easier for companies manufacturing ammunition and missiles across the value chain to access both public and private financing, to speed up investments needed to increase manufacturing capacities.
The provisional agreement must now be endorsed by the Council and the European Parliament. It will then be formally adopted by both institutions following legal-linguistic revision. Signature and entry into force is foreseen to take place before the end of July.
Margarita Robles, Spanish Minister of Defence, said: “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,” Robles said.
(Photo: TSgt Michael Holzworth, via Wikimedia Commons)
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