The EU Will Provide 500 Million Euros of Financial Support

The European Union (EU) is preparing to provide 500 million euros in financial support to companies to increase military weapons production in member countries.

The European Union (EU) is preparing to provide 500 million euros in financial support to companies to increase military weapons production in member countries.

The EU Industry Commissioner Thierry Breton announced the Proposed Arms Production Support Law, which aims to strengthen depleted ammunition stocks due to the ammunition sent to Ukraine, at a press conference in Brussels.

Breton reminded that European countries have provided significant amounts of ammunition to Ukraine since the beginning of the Russia-Ukraine war and emphasized the importance of sending artillery shells, particularly to Ukraine.

Breton emphasized that in order to compensate for the decreasing stockpiles, the EU needs to increase its arms production and said, “We want to support the development of our own defense industry and the defense industry directly for Ukraine with EU financial resources.”

Additionally, Breton noted that Europe has a significant production capacity in defense industry, but it is still insufficient to meet the security needs of Ukraine and member countries.

Protection from the European Union

The proposed law will establish a financial tool to strengthen the defense industry’s production capacity. Under this framework, ammunition manufacturers will receive 500 million euros in financing from the EU budget. This will encourage European arms companies to invest and increase ammunition and missile production.

In this case, Member States may redirect some of the regional cohesion or economic improvement funds to defense projects.

At the same time, a mechanism will be developed to closely monitor bottlenecks in the ammunition supply chain.

The EU plans to provide Ukraine with one million artillery shells within a year. In this context, an additional one billion euros has been allocated to cover the cost of the ammunition that EU member states will send to Ukraine.

Europe’s Production Could Revive

European defense companies have reduced ammunition production for years due to low order volumes. With the onset of the war, European countries began sending significant amounts of ammunition and weapons to Ukraine.

At this point, European defense firms are struggling to meet the increased demand for ammunition.

The firms are reluctant to invest significantly in increased production due to concerns that the high demand for ammunition in the current wartime situation may soon disappear.

However, the proposed law plans to support the development of the defense industry to meet Ukraine’s and Europe’s security needs. This could make the ammunition demand in Europe meetable.

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