The European Commission approved this Wednesday the creation of a mechanism that will allow the use of cohesion funds and the Recovery and Resilience Plan (PRR) of the Member States in the production of artillery ammunition.
The Ammunition Production Support Law (ASAP) will make 500 million available from the European Union (EU) budget to “expand existing production, modernize it, eventually create or improve it in existing factories,” explained the Market Commissioner Interior, Thierry Breton, at a press conference after the meeting of the College of Commissioners, in Brussels, Belgium.
ASAP has an unprecedented feature: for the first time, the 27 EU Member States can use cohesion funds or Recovery and Resilience Plans (RRP) to develop the Defense industry, that is, the part that refers to the production of ammunition.
“In Europe there is a real production capacity [de munições de artilharia]”, stressed Thierry Breton, adding that the development of the industry is the only way for the European Union to meet the arms needs of Ukraine and fulfill the promise to send one million ammunition in the next 12 months.
The plan presented by Brussels also foresees that Member States can receive a reimbursement of up to 40% for investment in this aspect of the Defense industry, plus 10% for associations with companies that focus on technological innovation and reinforcement of existing production.
“We can say this clearly: this conflict has put our production capacity under pressure and so that we can continue to support [a Ucrânia] in the long run we need to produce more to make up for the reduction in our stocks“, justified the commissioner.
This mechanism has been agreed in recent months with the defense ministers of the 27 and the EU High Representative for Foreign Affairs, Josep Borrell, and is part of a strategy that included one billion euros for the joint purchase of ammunition.
Source: TSF
