The Council Presidency reached a provisional agreement with representatives of the European Parliament on the Ammunition Support Act (ASAP).

The agreed regulation will urgently mobilize €500 million from the EU budget to support the increase in production capacities for the production of surface-to-surface and artillery ammunition, as well as missiles.

In doing so, it will implement the third axis of the plan agreed by the Council in March 2023 to ensure the long-term growth of European ammunition production for the benefit of Ukraine and EU member states.

The agreed rules introduce an instrument through which the EU will financially support the strengthening of the EU’s industrial production capacity for ammunition and missiles throughout the supply and value chain. This financial support will be provided in the form of grants to various types of actions that contribute to the European defense industry’s efforts to increase its production capabilities and address identified bottlenecks.

In addition, the new rules will make it easier for EU companies in the munitions and missiles sector to access funding, possibly through the so-called “Ramp-up Fund”. This fund is intended to facilitate munitions and missile companies throughout the chain to access both public and private financing and accelerate the investments needed to increase production capacity.