The European Parliament (EP) on Tuesday approved the strengthening of the defense industry in the European Union (EU) through joint public procurement, reinforcing it with a budget of EUR 300 million until the end of 2025.
The legislation was approved by 530 votes in favour, 66 against and 32 abstentions, and all that is missing is the ‘green light’ from the Council to implement the legislation.
Negotiations with the Council were concluded at the end of June and the legislation will create a short-term instrument to strengthen this sector with common public procurement until December 31, 2025.
In this way, the EU wants countries to fill the existing gaps, made worse by sending equipment, ammunition and vehicles to Ukraine to help the country that was invaded a year and a half ago to counter the Russian invasion.
The instrument will be financed with a budget of EUR 300 million and any joint acquisition must involve at least three Member States and be open to the participation of members of the European Free Trade Association and countries of the European Economic Area..
Contractors and subcontractors must be established in the EU or an associated country and must not be controlled by a third country or a non-associated entity.
The EU’s financial contribution to each action will be limited to 15% of the estimated value of each consortium’s common contract, a limit that could be increased to 20% if Ukraine and Moldova were beneficiaries of additional quantities of defense products.
Since the beginning of the Russian invasion of Ukraine, the 27 have sent equipment, vehicles, including tanks such as the Leopard 02 A6, and ammunition to help the Ukrainian armed forces confront Russian forces, which has led to the rapid weight loss of the armed forces. ‘stocks’ of the Member States. For this reason, and in order to fulfill the promise to send one million large-calibre ammunition early next year, Brussels has embarked on a strategy to strengthen defense capabilities.
Source: DN
