London Daily

Focus on the big picture.
Tuesday, Oct 27, 2026

Brussels unveils plan to boost EU defense industry

Brussels unveils plan to boost EU defense industry

Contentiously, the framework would allow tapping new sources of EU money.

European Commission industry chief Thierry Breton has urged European defense companies to get into “war economy mode” as he unveiled a new plan to boost weapons manufacturing across the EU.

The Act in Support of Ammunition Production (ASAP) agreed Wednesday by the European Commission will pump some €500 million from the EU budget into European shell factories to boost weapons manufacturing — matched with co-financing of around €500 million from member countries and other sources.

The aim is to produce 1 million rounds of ammunition within one year.

“In Europe, we still have a real production capacity. It’s there,” Breton said in announcing the plan Wednesday. “What we need to do now is to bring up capacity.”

The framework would controversially permit dipping into new pots of EU cash originally intended for boosting development around the Continent.

In visiting a dozen-plus producers across the EU, the French commissioner says that many sites already have the infrastructure required to make vast amounts of large ammunition. Much of the focus will be on refitting old ammunition.

“In addition to the direct budget, we are also freeing up funding from the cohesion funds,” Breton told POLITICO’s Brussels Playbook on Tuesday, “and also the RRF [Recovery and Resilience Facility funds] for those member states that wish to co-finance their defense industry.” Such funding, Breton argued, “will hopefully re-trigger access to private financing, either via the European Investment Bank, or from [private] banks.”

It’s part of a push to use the EU budget to produce ammo.

Asked Wednesday how he justified dipping into the cohesion and RRF funds for European defense, Breton pointed out that many factories were built in isolated areas. As a result, cohesion funds are “entirely appropriate and well-suited” and would “support our industrial base.”

Similarly, he said that the RRF “will increase our resilience … and our security is clearly part of that.”

He also noted that it will be up to member countries to access cohesion funds.

VMZ Sopot armaments factory, Bulgaria. The EU Commission is to pump €500 million into European shell factories to boost weapons manufacturing


But an EU diplomat, who spoke on condition of anonymity in order to speak freely, has said that even if use of these funding sources “is resolved and legally possible, recovery plans and programming for cohesion funds have already been agreed,” meaning they would have to be renegotiated with the Commission in order to become available.

“Those are difficult and time-consuming processes … so how feasible is it that funds from either source would be available within a reasonable timeframe?” the diplomat added.

The latest defense proposal unveiled by the Commission represents the third of a three-track process spearheaded by European leaders in the wake of the war in Ukraine as the EU scrambles to boost its defense capacity and develop a pan-EU defense strategy.

European leaders agreed to the three-track approach at the end of March.

Parallel to Wednesday’s announcement, EU ambassadors on Wednesday reached a preliminary agreement on the so-called track 2 element of the defense proposal, which aims to spend €1 billion on joint procurement of ammunition and missiles over the next year.

The deal was announced by Sweden, which holds the rotating presidency of the Council, and will become official on Friday if no member country objects.

The challenge was to agree on the legal framework for track 2. Countries had been squabbling over the terms of the program, with some — notably France — reluctant to include non-EU manufacturers in the supply chain.

Speaking today about track 3, Breton said, “We want of course [that] projects are produced in Europe.”

The compromise text for track 2, seen by POLITICO, states that “ammunitions and missiles which have undergone an important stage of manufacture in the Union or Norway which consists of final assembly shall be deemed eligible.”

A different EU diplomat, who also spoke on condition of anonymity in order to speak freely, praised Swedish agility in the negotiations: “The Presidency has done a very good job of combining the need to devote track 2 to the European defense industry, so that it ramps up in the production of ammunition and missiles … and the specific characteristics of the defense industry of each of the member states.”

Newsletter

Related Articles

0:00
0:00
Close
Education or Indoctrination? The Growing Debate Over Religious Participation in British Schools
Germany's Vanishing Shopfronts: The Silent Collapse of the Businesses That Built Its Cities
Northern Ireland Executive Reaches Agreement on Public Transport Modernization and Cross-Border Rail Infrastructure Funding
Department for Energy Security and Net Zero Approves New North Sea Carbon Capture and Storage Industrial Clusters
Office for National Statistics Reports Stabilization in Private Rental Growth Across Major English and Welsh Regional Cities
United Kingdom Automotive Manufacturing Output Rises Moderately as Electric Vehicle Assembly Lines Expand in the Midlands
Competition and Markets Authority Launches Formal Inquiry Into Cloud Computing Infrastructure and Artificial Intelligence Partnerships
Scottish Government Finalizes Emergency Budget Adjustments Following Multi-Year Public Sector Funding Shortfalls
National Health Service England Announces Major Emergency Care Overhaul to Alleviate Severe Winter Capacity Pressures
Chancellor Rachel Reeves Prepares Autumn Budget Amid Intensifying Scrutiny Over Public Spending and Fiscal Rules
Bank of England Signals Cautious Approach to Further Interest Rate Cuts as Persistent Wage Growth and Inflation Pressures Remain
Transport for London Unveils Expanded Zero-Emission Bus Fleet to Meet Capital Air Quality Targets
Higher Education Institutions Face Deepening Financial Strain Amid Declining International Student Enrolment
Automotive Industry Leaders Criticize Government Tax Policies and Urge Action on Retail Consumer Confidence
Environment Agency Issues Flood Alerts Across Scottish and English Waterways Following Heavy Rainfall
Independent Audit Highlights Persistent Security Vulnerabilities Across Legacy Government Digital Portals
Northern Ireland Political Leaders Clash Over Westminster Funding Allocations Ahead of Autumn Budget
Ethnic Minorities in England Face Significant Disparities in Routine Breast Cancer Diagnosis Rates
National Police Chiefs Report Alarming Surge in Domestic Abuse Cases Fuelled by Expanding Illegal Cocaine Market
Government Announces Two Hundred and Twenty Million Pound Pothole Funding Boost for Local Highway Authorities
China Issues Formal Warning Over Potential United Kingdom Restrictions on Chinese Electric Vehicles
British Defence Ministers Sign E5 Pact to Enhance European Military Capabilities and Industrial Cooperation Within NATO
United Kingdom Business Activity Expands at Fastest Pace in Eight Months According to S&P Global Flash Survey
Chancellor John Healey Prepares Major Devolution Package and Bank Profit Surcharge Ahead of Upcoming Autumn Budget
National Health Service Consultants in England Announce Two-Day Strike Action Scheduled for November
Major Clean-Up Under Way Across Britain Following Destruction Caused by Consecutive Storms Austen and Boelo
KEY TRENDS TO WATCH
Declassified Intelligence Files Reveal British Security Services Monitored National Health Service Founder
British Government Launches Sweeping Regulatory Crackdown on High-Risk Cosmetic Procedures
Scottish National Party Demands Ban on Using Scottish Revenues to Fund English Nuclear Energy Projects
Mayor of London Initiates Landmark Pedestrianisation of Oxford Street to Revitalise Global Retail Hub
British Judges Granted Expanded Legal Powers to Punish Convicted Killers Who Refuse to Attend Sentencing
United Kingdom Poised to Miss Reduced International Aid Spending Targets Ahead of Fiscal Review
Surging Cocaine Consumption Drives Record Drug Fatalities and Rising Crime Rates Across Britain
Department of Health and Social Care Announces One Hundred and Forty Million Pound Boost for Urgent Care
British Services Sector Records Strongest Growth in Eight Months Despite Broader Economic Uncertainty
United Kingdom Retail Sales Suffer Unexpected Decline as Consumer Confidence Plummets
Greater Manchester Mayor Andy Burnham Urges National Debate on Restoring European Union Free Movement
Deep Cabinet Divisions Emerge Over Controversial Approval of North Sea Fossil Fuel Projects
United Kingdom Government Urges Citizens to Stockpile Essential Supplies in National Resilience Pivot
Storm Boelo Kills Two People and Cuts Power to Tens of Thousands Across Great Britain
Critical Software Flaw Forces Dozens of United Kingdom Government Services Offline Amid Mass Security Warnings
UK Consumer Confidence Tumbles Amid Rising Energy Costs and Global Commodity Price Pressures
North Sea Transition Authority Approves Production from Jackdaw Gas Field to Bolster Domestic Energy Security
Storm Boelo Leaves Tens of Thousands of Households Without Power Across Scotland and Northern Ireland
UK Government Launches National Be Ready Campaign Urging Households to Prepare Three Days of Emergency Supplies
Department for Environment Food and Rural Affairs Implements Stricter Water Quality Regulations for British Rivers
Welsh Government Launches Major Renewable Energy Initiative to Expand Offshore Wind Capacity Along the Coast
Northern Ireland Executive Reaches Final Agreement on Comprehensive Regional Infrastructure Modernization Plan
Office for National Statistics Reports Moderate Increase in British Retail Sales Driven by Autumn Discounts
×