European Union plans to produce a million artillery shells a year

The war in Ukraine has incentivised Brussels to subsidise the upgrade of the bloc's defence industry

EU Internal Market Commissioner Thierry Breton presents the EU Act in Support of Ammunition Production in Brussels, Belgium, on Wednesday. EPA

The European Commission on Wednesday unveiled a plan to boost the continent’s production capacity of artillery shells to one million a year as its defence industry struggles to arm Ukraine in the war against Russia.

EU internal market commissioner Thierry Breton said that “given the urgency” he hoped that the proposal would be approved by the European Parliament and EU governments by the end of June.

Mr Breton, who recently completed a three-week inspection tour of Europe’s ammunition factories in 11 countries, said in Brussels that the EU wants to give itself “the means to adapt to this new geopolitical order”.

“We estimate that it will last for a certain time,” he said. “Investing in our defence will allow us to defend our democracy.”

After decades of peace, Europe’s current ammunition production capacity is relatively low. Mr Breton declined to give current production figures, citing security concerns.

The commission proposes using €500 million ($551 million) from the EU budget to increase ammunition in the bloc. The EU aims to boost and modernise existing assembly lines, create new lines, and recondition out-of-date ammunition to current norms.

“Everyone must participate in this effort. It’s essential not only for Ukraine, but also for us,” Mr Breton said.

Brussels would cover 60 per cent of costs while the rest would be shouldered by member states or companies, with a 10 per cent bonus for partnerships and another 10 per cent bonus for those who prioritise their production in Europe, according to Mr Breton.

This would bring the overall value of the plan to €1 billion. “This amount seems perfectly calibrated because the factories and sites already exist. The aim is to ramp up their capacity,” Mr Breton said.

The commission has also suggested amending laws to allow weekend-night and night shifts in weapons factories and facilitate the transfer of ammunition and technical know-how within the bloc.

The proposal, which would last for two years, would support previous measures decided by EU governments to spend €1 billion to reimburse about 50 per cent of modern and Soviet-era ammunition sent to Ukraine from their own stockpiles.

Brussels is also considering joint-procurement to boost ammunition transfer to Ukraine at a cost of another €1 billion.

The EU has, so far, committed €13 billion ($14.3 billion) in military support to Ukraine as of March.