The final pillar of the European plan agreed by the Twenty-Seven at the end of March focuses on expanding production capacity for all types of ammunition and missiles within the European Union, ensuring a steady supply for its armed forces and for Ukraine. The European Commission proposed a 500 million euro Community budget injection by 2025, with an additional 500 million euros from member states and industry to support the military sector. This initiative aims to push Europe toward a higher level of production, potentially delivering around one million shells per year. The commissioner for industry and internal market, Thierry Breton, summarized the goal: European industry should shift toward a war economy mindset and scale up a manufacturing capability that can meet urgent demand.
“A contribution of 500 million euros will create the right incentives for manufacturers involved in the production of defense material to step up investment and capacity building across the entire supply chain”, states the Brussels-based administration in the proposed regulation known as the Ammunition Production Support Act, or ASAP. The proposal explains that the European contribution will cover half the investment, with the other half covered by governments or private companies, a structure intended to shorten production times and accelerate output given the existing backlogs of two to three years in some cases.
The new legislation would also enable the Commission and member states to anticipate shortages that could affect ship safety and supply chains. It would map stockpiles to monitor ammunition and missile components, support industry collaboration, and coordinate the sourcing of raw materials. The aim is to remove regulatory hurdles and boost the competitiveness of Europe’s defense industry. Brussels would allow co-financing by permitting the redirection of funds from other Union programs, including the New Generation EU Fund and structural funds, to streamline investment.
15 factories in 11 countries
During a tour of facilities across member states, Breton identified roughly fifteen companies in eleven EU countries with the capacity to produce the ammunition needed by Kyiv. Spain is slated to host the next leg of the trip as part of a broader European tour. Breton notes that the EU already has substantial production capacity, rivaling that of the United States, but that it has been hampered by insufficient investment and a decline in military spending in recent years.
The objective, as Breton explains, is for the Council and the European Parliament to reach rapid agreement, ideally before summer, so orders can start promptly. The instrument is set to operate for two years, expiring in mid-2025. Time is of the essence for accelerating ammunition supply. Josep Borrell, the high representative for foreign policy, acknowledged that the initial two tracks of the plan have progressed more slowly than hoped. The first track aims to accelerate delivery of ammunition, while the second track contemplates joint acquisitions among member states.
Officials emphasize that the early phase involves delivering some stockpiled items from member states and from the United States, with a preliminary budget in the hundreds of millions of euros. The approach also contemplates leveraging European cooperation to guarantee a steady flow of missiles and ammunition, while encouraging European companies to participate in tenders that are strictly European-centric.