Debate: Strengthening the EU Defence in the context of the war in Ukraine: speeding up production and deliveries to Ukraine of weapons and ammunitions
Date: WEDNESDAY, 15 MARCH 2023
Speaker: Mairead McGuinness
Language: EN

A conservative estimate puts EU Member States’ collective effort and support at EUR 12 billion. However, the Ukrainian Minister of Defence has informed us that they have an urgent need to ensure the stable supply of 155 mm artillery ammunition. This urgent need calls for coordinated European response and that is what the Commission, together with the High Representative and the European Defence Agency, have recently proposed an ambitious, pragmatic and rapid response around three intrinsically linked areas: immediately transfer ammunition from existing stockpiles; structure demand by placing massive orders with European industry, covering both the needs of Ukraine and those of Member States; increase European production capacity massively and rapidly, which is a prerequisite for these orders to be met. To provide Ukraine with the right support at speed we need to act in parallel on these three axes. Without an increase in industrial production, we will not create confidence for Member States to transfer more ammunition from their stocks. We want them to know that those stocks will be replenished fast in the face of a threat that is likely to last. The Defence Joint Procurement Task Force has established a fairly precise industrial mapping of ammunition production capacities, particularly for artillery shells. We identified 15 producers in the 11 Member States. We also know that the current EU production capacity is larger than in many of our non-EU partners. However, almost all of this production is already contracted. The good news is that the potential of EU industry to produce 155 mm ammunition remains significant, and we need to unlock this potential. Signing large contracts consolidated at European level will send the appropriate signal to industry to take action, but this is not a guarantee of delivery on time. Our industrial objectives are clear: reduce production time and increase production volumes and, above all, secure the earliest possible availability of the required volumes. In order to do this, we need to support an increase in capacity and address bottlenecks, especially in the value chain. We need to monitor industrial ramp-up efforts and ensure contracting of industrial production conditions. The Commission is ready to mobilise its regulatory clout and the available resources as appropriate to support the defence industry to ramp up. We are working on all options, including mobilising the EU budget if needed. More specifically, we recently put on the table the European Defence Industry Reinforcement through common Procurement Act. This short-term instrument with EUR 500 million could be used to accelerate industrial production of the required ammunition. The support of Parliament to reach swift agreement will be essential. If necessary, we are also ready to mobilise other resources. At the same time, we need to be able to mobilise private finance, including from the EIB and banks. To that end, Member State support will be essential. Finally, we know what industry is doing today. Now we need to know what they will do tomorrow and what they could do tomorrow. In that light, Commissioner Breton has started to visit each of the 15 companies identified by the task force to discuss with them directly and understand their constraints and to see how to help them increase their production capacity. Thank you. I look forward to the debate.