According to the agreed text, the Act in Support of Ammunition Production (ASAP) aims to accelerate the delivery of ammunition and missiles to Ukraine and to help member states restock their arsenals. By introducing targeted measures, including €500 million in financing, ASAP aims to ramp up the EU’s production capacity to address the current shortage of defence products, specifically ground-to-ground and artillery ammunition, missiles and their components.
During negotiations, MEPs pushed for a lower financing rate of projects, to ensure that a more diverse range of projects receive funding. Small and medium-sized enterprises (SMEs) would be eligible for a higher funding rate. MEPs also secured that the new financing should not come at the expense of existing cohesion funding.
They also insisted on including wording in the legislation to ensure that EU countries will provide Ukraine with the ammunition funded under this legislation, without it being subject to export restrictions.
Negotiators also call on the Commission, in a joint declaration, to consider putting forward as soon as possible any further initiative needed to strengthen the European Defence Technological and Industrial Base, including adequate financing, as well as a legal framework to ensure security of supply and support ammunition production.
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EP negotiating team leader Cristian Bușoi (EPP, RO) said: “Today’s agreement marks another step forward for Europe’s security and defence, and in our steadfast support of Ukraine in the face of the ongoing Russian aggression. We delivered on the most urgent aspect of the law: ensuring the provision of more ammunition for Ukraine. It is a victory for Europe and for our collective security.”
Next steps
The informal agreement now needs to be endorsed by both Parliament and Council in order to become law. It will be put to a vote in the Industry, Research and Energy Committee on Monday, 10 July, and in plenary session the same week.
Background
The ASAP comes in response to a Ukrainian request to the EU to supply 155 mm-calibre artillery rounds and the agreement of the Council on 20 March 2023 on a three-track proposal on ammunition. Member states have been invited to urgently transfer ammunition from their own stocks to Ukraine (Track 1). EU countries have agreed to jointly procure 1 million ammunition rounds (Track 2). Track 3 aims to ramp up production capacity in the European defence industry. This should be achieved through the ASAP, which responds directly to the Council’s call to deliver ammunition urgently, and if requested missiles too, to Ukraine and to help member states restock their supplies. The Commission proposed a budget of €500 million.
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