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European defence industry is waiting for swift finalisation of the legislative process of ASAP

Source: Aerospace, Security and Defence Industries Association of Europe (ASD), Defence Industry Europe

The Council of the European Union and the European Parliament have reached a provisional agreement on the Act in Support of Ammunition Production (ASAP). The regulation will mobilise EUR 500 million from the EU budget to support the ramp-up of the manufacturing capacities for the production of ammunition and missiles. The provisional agreement must now be endorsed by the Council and the Parliament.

“Russia’s war in Ukraine and the dramatically changed security environment require a strong and sustained increase in the production of defence products, including ammunition, in order to guarantee Europe’s security and sovereignty in the long run. The European defence industry stands ready to play its role as the producer of state-of-the-art defence equipment for our and our allies’ armed forces,” said Jan Pie, Secretary General of Aerospace, Security and Defence Industries Association of Europe (ASD).

“Today’s agreement by the Council and the European Parliament on the Act in Support of Ammunition Production (ASAP) is an important step to support the much needed ramp-up of the European defence industry’s production capacity,” he stressed.

 

 

“At the same time, we regret the limits and the sources of the financial envelope. Using the budget of the European Defence Fund (EDF) to fund ASAP is particularly disappointing in this respect, as it undermines the long-term development of the European defence industry. We hope that the forthcoming mid-term review of the Multiannual financial framework will be used as an opportunity to increase the EDF budget and thereby compensate for the reduction that is due to ASAP,” said ASD Europe Secretary General.

“On the other hand, we welcome the efforts made in the proposed regulation to facilitate access to finance as a precondition for the ramping up of defence production. We also support the possibility of a ‘Ramp-up Fund’ as a way to accelerate investment in eligible activities. In this regard, we reiterate our call towards member states to mandate the European Investment Bank to support the European defence industry and joint procurement beyond its ongoing investments in dual use activities.”

“We now hope for a swift finalisation of the legislative process of ASAP and the European defence industry reinforcement through common procurement act (EDIRPA) and stand ready to support the EU and its Member States in a successful implementation of the two instruments,” Jan Pie commented.

 

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