With a new programme, the EU wants to support the European arms industry in the production of artillery ammunition. The European Parliament today passed the relevant regulation, called the Ammunition Production Support Act (ASAP). The ordinance is intended to promote the expansion of production capacities, especially in the area of artillery ammunition and surface-to-surface missiles, with the help of 500 million euros and other measures. Pending approval by the Board is considered a formality.
Member States reject Commission intervention
However, the law passed in the rush procedure no longer includes the creation of an overview of industrial production capacities across the EU originally planned by the Commission. Also no longer included is the plan to monitor the availability of ammunition and the availability of resources necessary for production. Furthermore, the Commission’s idea of granting itself the right to intervene in prioritizing industry requests through the ASAP can no longer be found in the final version of the regulation.
Neither industry nor the Member States, in the form of the Council, could gain from these Commission ideas. Some member states accused the Commission of wanting to go too far with its powers.
Up to 35 percent cost coverage
The final regulation stipulates that industrial projects to expand artillery ammunition production capacities can be financed by the ASAP fund with up to 35% of the costs incurred. Up to 40% funding is possible for projects as long as it concerns expanding production capacities in the area of ammunition sub-components or necessary raw materials. The prerequisite is the fulfillment of the financing conditions listed in the ASAP.
With ASAP, the EU is directly promoting the arms industry for the first time. Previously, EU funds in the armaments sector were reserved exclusively for research and development.
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The ASAP regulation is the EU’s response to the massive shortage of ammunition due to the war in Ukraine. Many member states are supplying artillery ammunition to Ukraine to help in its fight against Russian aggression. However, due to the lack of ammunition stocks in many European countries, Ukraine’s needs far exceed the countries’ supply capabilities.
As a result, on March 20, EU member states agreed on a three-pronged approach to remedying the problem. Firstly, Member States must continue to supply ammunition from their stockpiles. Second, member states agreed to jointly purchase one million new artillery shells. The third line provided for the increase of production capacities in the EU. To implement the third way, the Commission submitted its ASAP proposal on 3 May, which then went through the EU legislative process in an accelerated procedure.
editorial / oh