The European Commission on Wednesday approved the creation of a mechanism that would allow the use of cohesion funds and Member States’ Recovery and Resilience Plan (PRR) in the production of artillery munitions.
The Ammunition Production Support Act (ASAP) will release €500 million from the budget of the European Union (EU) to “extend, modernise, potentially create or improve existing production in existing factories”, said Internal Market Commissioner Thierry Breton at a press conference following 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 (PRR) to develop the defense industry, namely the part related to the production of munitions.
“In Europe there is real production capacity [de munições de artilharia]”emphasized Thierry Breton, adding that the development of the industry is the only way for the European Union to meet Ukraine’s armaments needs and to fulfill the promise to send one million ammunition in the next 12 months.
The plan presented by Brussels also provides that Member States can be reimbursed up to 40% for investments in this aspect of the defense industry — plus 10% for partnerships with companies that focus on technological innovation and strengthening existing production.
“We can say this clearly: this conflict has put a strain on our production capacity and to continue to support us [a Ucrânia] in the long run we need to produce more to compensate for the decrease in our stocks”justified the commissioner.
This mechanism was agreed in recent months with the 27 defense ministers and the EU’s High Representative for Foreign Affairs, Josep Borrell, and is part of a strategy that included a billion euros for the joint purchase of ammunition.
Source: DN
