European Commission presents defense industry strategy with close involvement of Ukraine

On March 5, the European Commission presented the first-ever European Defense Industry Strategy at the EU level, which involves close engagement with Ukraine, according to the statement.

The European Defense Industry Strategy (EDIS) establishes a clear, long-term vision for achieving defense industrial readiness in the European Union, Rubryka reports.

As the primary immediate means of implementing the strategy, the European Commission is proposing legislative measures for the European Defense Industrial Program (EDIP) and a framework of measures to ensure timely access and supply of defense products.

The strategy outlines the current challenges facing the European Defense Technological and Industrial Base (EDTIB) and opportunities for fully leveraging its potential, setting the direction for development over the next decade.

To support member states in achieving these goals, the European Defense Industry Strategy proposes a comprehensive set of measures:

• Supporting more effective expression of collective defense needs of member states;
• Ensuring accessibility of all defense products through a more responsive EDTIB system under any circumstances and timeframes;
• Ensuring that national budgets and EU budgets support the necessary means for adapting the European defense industry to the new security context;
• Incorporating a culture of defense readiness into all policies, including calling for a review of the European Investment Bank's credit policy this year;
• Developing closer ties with Ukraine through its participation in EU initiatives to support the defense industry and promote cooperation between the EU defense industry and Ukraine;
• Uniting with NATO and strategic partners, like-minded countries, and international partners, as well as closer cooperation with Ukraine.

The strategy sets indicators to measure member states' progress in achieving industrial readiness. Member states are proposed to:

• Procure at least 40% of defense equipment cooperatively by 2030;
• Ensure that by 2030, the value of intra-European defense trade accounts for at least 35% of the value of the EU defense market;
• Achieve sustainable progress toward procuring at least 50% of their defense budgets within the EU by 2030 and 60% by 2035.

On March 5, the European Commission was expected to propose ways for the EU to incentivize its defense industry to transition to a "wartime economy" in response to Russia's invasion of Ukraine.

Discussions are also underway about creating a separate European Commissioner position for defense matters.

During the Munich Security Conference on February 17, Czech President Petr Pavel announced that his country had identified 500,000 shells of 155 mm caliber and 300,000 shells of 122 mm caliber that could be delivered within weeks if funding was available.

According to Pavel, the Czech Republic could transfer the ammunition within weeks if it secures funding from the United States, Germany, Sweden, and others.

The following countries have joined the Czech initiative:

• Canada will send CAD$30 million (about US$23 million) to purchase ammunition for Ukraine outside NATO;
• The Netherlands allocates over €100 million for this initiative;
• Belgium will give €200 million;
• Lithuania will join the Czech initiative in purchasing and transferring ammunition to Ukraine.

Overall, 15 EU countries support purchasing ammunition for Ukraine outside Europe.

Over the past months, the European Union has significantly increased the production of ammunition and will increase this capacity to one million rounds per year as early as March of this year and to two million by 2025.