EU ammunition, here is the Commission’s plan to speed up production (also with Pnrr funds)
Brussels has proposed to use the EU budget to support the production of ammunition by allocating 500 million euros. An unprecedented move. Furthermore, the Treaty establishing the EU prohibits direct defense spending from the budget of the Twenty-seven…
The new plan to bring the EU ammunition production capacity to one million bullets a year is called "Act in support of ammunition production" abbreviated Asap as "As soon is possible". Therefore, be quick to respond to requests from Kiev for 155 mm shells and other artillery supplies to defend against the Russian offensive.
Yesterday, the European Commission adopted ASAP to urgently supply shells and missiles to Ukraine and to boost the production of European member states by which it allocates 500 million euros from the EU budget to co-finance projects that increase the production capacity of munitions in the Old Continent. The plan also allows cohesion funds and funds from the Recovery and Resilience Facility to be used for these projects. "Member countries that wish to do so will be able to use part of the Pnrr funds for ammunition", underlined the EU commissioner for the internal market, Thierry Breton, presenting the new plan.
It is "an unprecedented move sparked by Russia's war against Ukraine to provide money to an industry previously barred from funding," notes the Financial Times . And in fact Breton also supported it in the comments shared before the proposal: "The law we are proposing has no precedents". "It aims to directly support, with EU funds, the strengthening of our defense industry for Ukraine and for our own security".
This plan is the third pillar of a broader EU effort to send more ammunition and weapons to Ukraine . “Europe – recalled the President of the European Commission von der Leyen – is strengthening its support on three axes. First, member countries are supplying “Kiev” with additional ammunition from their existing stocks, with new support from the European Peace Fund of 1 billion euros. Secondly, together with the member states, we will jointly buy more ammunition for Ukraine and make an additional billion euros available for it."
All the details.
WHAT THE ASAP PLAN ADOPTED BY THE EUROPEAN COMMISSION PROVIDES
The new EU plan to produce one million munitions a year "will help supply more munitions to Ukraine to defend its citizens and will also strengthen our European defense capabilities," said European Commission President Ursula von der Leyen , underlining that with the "Act in support of ammunition production (ASAP)" Brussels will mobilize, together with the Member States, "a further billion euros to enhance capacities throughout Europe".
Under the plan published on May 3, the European Commission has proposed to provide €500 million to finance the expansion of the capacity of arms factories producing ammunition and missiles, to replenish stocks and ensure continued support to Ukraine.
The proposal includes: an instrument to financially support the strengthening of industrial production capacities of the Union for the relevant defense products; a mechanism to better map, monitor and predict the existence of supply chain bottlenecks; the introduction of a temporary regulatory framework to address ammunition shortages.
EU RESOURCES TO ACCELERATE AMMUNITION PRODUCTION
As summarized by Ansa , the financing scheme is made up of a fund of 500 million euros from the Community budget (260 million will be transferred from the European Defense Fund and 240 million from the Edirpa procurement fund), shares of EU co-financing up to a maximum of 60% per project, and resources to be redirected from Pnrr and cohesion policy.
A PLAN IN VIOLATION OF EU TREATIES?
The proposed move to redistribute funds from the EU's common budget is certainly the most controversial, highlights the FT which recalls how the EU's founding treaty prohibits direct defense spending from the budget of the Twenty-seven.
“Our analysis is that it is fully compatible with the treaty,” replied Commissioner Breton announcing the proposals. “Yes, investing in our defense will allow us to defend our democracy. And this is what we must tell our fellow citizens”. The Recovery Fund “was specifically built for three main actions: the green transition, the digital transition and resilience. Intervening punctually to support industrial projects moving towards resilience, including defence, is part of this third pillar,” added Breton.
Yet a diplomat heard by the Financial Times reiterated that "The Treaty explicitly excludes financing for arms". “It all sounds good, but there are some big question marks as to whether that would work.”
THE TIMINGS
Now the ASAP plan will need the approval of EU governments and the European Parliament to become a reality. According to Ansa , the design immediately received approval from Italy, France, Germany, Spain, Greece, Sweden, Bulgaria, Slovakia, the Czech Republic, Poland and Romania, which were later joined by Slovenia and Croatia.
The European Commission is counting on an adoption before summer 2023, in order to be able to rapidly start the development of the production capacities of the EU defense industry of ammunition and missiles. The tool will cease to apply in mid-2025.
But “new disagreements are looming that will not be lacking along the process of community legislation. With Ireland and Austria, traditionally neutral, already leading the opposition” Ansa reported.
BRETON'S WORDS
"I hope it will be adopted to ensure that we will be able to give the defense industry what it needs to strengthen the production of ammunition" and help Kiev, Breton stressed. "We have identified eleven countries with a strong defense industry" and "fifteen companies" in the sector that can help achieve the goal, he added.
“During the tour in Europe, I was able to take a closer look at the European production capacity,” explained Thierry Breton. We have nothing to envy from our partners. But in terms of defense, our industrialists must now switch to war economy mode.
During his tour, Breton also stopped in Italy, where he visited two large factories of military material (which ones are not communicated).
This is a machine translation from Italian language of a post published on Start Magazine at the URL https://www.startmag.it/innovazione/munizioni-ue-ecco-il-piano-della-commissione-per-accelerare-la-produzione-anche-con-fondi-pnrr/ on Thu, 04 May 2023 03:35:37 +0000.