The European Union’s Council and Parliament have achieved a preliminary accord on the Act in Support of Ammunition Production (ASAP), aimed at strengthening ammunition and missile manufacturing within the EU. The agreement aims to benefit member states and Ukraine. According to the Council, the agreed-upon regulation will allocate 500 million euros ($545.3 million) from the EU budget to support the expansion of production capacities for ground-to-ground and artillery ammunition, as well as missiles.
The agreed rules include a financial support mechanism that grants assistance to the EU industry, bolstering its ammunition and missile production capabilities across the entire supply and value chains. This initiative aims to address potential bottlenecks and shortages. To facilitate access to public and private funding, a “Ramp-up Fund” will be established to support the ammunition and missile supply chains.
The provisional agreement is subject to endorsement by both the EU Council and the European Parliament before formal adoption. The Council expects the agreement to be signed and put into effect by the end of July.
The ongoing conflict between Russia and Ukraine, coupled with the EU’s continuous military assistance to Ukraine, has highlighted challenges within the European defense and military equipment market. In response, the Council had previously agreed to supply Ukraine with 1 million rounds of artillery ammunition within the next year. It also committed to the prompt delivery of ground-to-ground and artillery ammunition, and, upon request, missiles from existing stocks or through the reordering of priorities. Member states were encouraged to collectively procure ammunition and, if necessary, missiles from the European defense industry and Norway.
(Note: Exchange rate used: 1 euro = $1.09)
