Barely two months after the European Commission presented its proposal to reserve 500 million euros for the production of ammunition and missiles on European soil, the negotiators of the member states and the European Parliament have fine-tuned and approved the text.
The Act in Support of Ammunition Production (ASAP) is the third part of a plan that EU member states approved in March, which should guarantee that the EU can deliver one million rounds of 155 mm ammunition to Ukraine within the year. In addition to deliveries from the existing national stocks and the joint purchase of ammunition, this plan strengthens European production.
By the end of this month, the law should come into effect, and the money can start flowing. Up to EUR 500 million can be obtained from the European budget to facilitate the production of surface-to-surface munitions, artillery munitions and missiles. These are loans to scale up the production capacity of the European defence industry and eliminate bottlenecks. The companies involved will also have easier access to public and private investments in their arms production.
The agreement on the ASAP law is one of the first feathers that the new Spanish presidency of the Council can put on its hat. Defense Secretary Margarita Robles is, therefore, very excited. “This is yet another proof of the EU’s unwavering commitment to support Ukraine,” she says. “It strengthens the technological and industrial base of European defence and ensures its citizens’ long-term security and defence. “
MEP Jerzy Buzek, who co-negotiated, called the law “of strategic importance for the Ukrainian counter-offensive” in the war with Russia. “It was crucial to us that this fund can provide financial support to the best projects, whether they are large or small. We have succeeded in prioritizing SMEs and mid-caps.” Meanwhile, Burzek’s European People’s Party is also calling for more money and resources to be given to other defence projects. We urgently need to adjust our budget priorities.
Next week, the plenary of the European Parliament will already approve the law at its last meeting before the summer recess.