EU now wants to cut Europe’s weapons industry for war economy

The EU has promised besieged Ukraine one million artillery shells over the next twelve months. A huge amount of heavy ammunition that all EU defense companies together cannot produce – they currently produce about 650,000 shells a year.

But, EU Industry Commissioner Thierry Breton urged on Wednesday, “the EU has the potential to produce that amount. To that end, our industry must now shift to a war economy as far as our defense is concerned.”

In concrete terms, this means: a lot of money for the arms companies; a rapid acceleration of its production; joint procurement at European level and the necessary laws.
And even with the latter there was a bang: France objected to the fact that ammunition could also be purchased from armaments companies outside the EU. Paris emergency braking caused serious resentment, especially in Poland and the Baltic countries:

The only important thing is that the grenades are delivered to Ukraine as soon as possible. And the governments of Eastern European countries suspected that France was thinking more about its own armaments industry than helping Ukraine.

Indeed, France will be one of the biggest beneficiaries of upcoming munitions orders: only three EU companies are among the top 20 defense companies in the world – two of them are French. Currently, the armies of Europe are combing through their stockpiles and are already delivering 155 mm artillery shells. The EU is making a billion euros available for this.

Neutral Austria does not participate here – but it does with the planned next step: EU armies want to order and buy ammunition together – and in large quantities. Because these grenades must be used to replenish and expand your own stocks.

As part of this jointly ordered quantity, states can also purchase additional ammunition for Ukraine and continue to supply it. One billion euros is also earmarked for this. And the EU released another €500 million yesterday to support the production of ammunition for Europe’s own needs. Armament companies can receive their first orders as early as June.

The problem: An increase in European ammunition production cannot be achieved so quickly. The Slovak armaments group ZVS Holding will increase its artillery production from 2024 and again from 2025 – too late, in any case, to give Ukraine quick help.

emergency mechanism

And another plan is likely to cause considerable controversy: the EU Commission wants to force arms companies to deliver ammunition to EU member states rather than to non-EU countries in the event of shortages in Europe.

Deliveries to countries outside the EU would have to wait. “Europe First” would be the motto – that for-profit arms companies would accept this without saying a word is massively questioned in Brussels.