MEPs approve the Act in Support of Ammunition Production

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At its plenary session in Strasbourg today, the European Parliament successfully passed the Act in Support of Ammunition Production (ASAP). The adoption of this proposal in the field of defence policy is not only an extraordinary legislative accomplishment, but it also surpasses the expectations of a speed record, considering that the proposal was first introduced in early May.

 

ASAP is the final pillar of the comprehensive 3-track agreement reached by the Council of the EU on March 20th to speed up the production and delivery of artillery ammunition and missiles.

It proposes a €500 Million fund to co-finance investments in the production of ammunition and missiles, as well as their components and the necessary raw materials. The fund will run from its adoption until June 30th of 2025. Companies will be able to apply to this fund through competitive calls for proposals.

With this instrument, the EU is once again breaking new ground by investing for the first time directly in the production and supply chains of the EU defence industry.

At C&V Consulting, we applaud this initiative, which puts flesh on the bones of political rhetoric in support of Ukraine and the European defence industrial base.

Nonetheless, at this stage, these investments are limited in budget and scope (ammunition and missiles). We hope that the innovation and ambitions of ASAP, but also of EDIRPA, will be extended to the rest of the industry in the forthcoming EDIP, making EDIP the most ambitious and structural EU defence industrial policy to date.

Given the huge demand for ammunition, the challenge of ramping up production and the modest size of the fund, companies applying for funding under ASAP will undoubtedly face stiff competition.

C&V has been monitoring all these topics and is using all its experience in European funding programmes to support its clients.

 

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