MEPs debate on the European Commission's proposal to help European industry increase its ammunition and missile production capacity. Under the Commission’s proposal, the Act in Support of Ammunition Production (ASAP) will have a budget of €500 million in current prices. The Commission is encouraging the co-legislators to adopt the proposal by the end of June. Opening statement by Thierry BRETON, European Commissioner for Internal Market. This transcription is a result of an automatic process. Please check against delivery.

EU - Ukraine (T)

statement

Strasbourg

debate

plenary session

BRETON, Thierry (FR, EC)

foreign affairs and security policy (T)

Adoption of the Act in support of ammunition production: opening statement by Thierry BRETON, European Commissioner for Internal Market

SOUNDBITE (French), Thierry BRETON, European Commissioner for Internal Market, President, ladies and gentlemen, Members of the European Parliament. I should like to begin by thanking the European Parliament for having placed this item on the agenda of your plenary sitting. This item on it is a quite special one, and that is extremely important to me indeed. And I'll come back to that act in support of ammunition production for Ukraine.

SOUNDBITE (French), Thierry BRETON, European Commissioner for Internal Market, Since the outset of the conflict, Europe has been on the front line to supply materiel, notably artillery tanks. But one of the main points has become supplying Ukraine with ammunition and missiles. Now, the conflict has really, no doubt, placed our industrial capabilities under great pressure. We must produce more to be able to feed into the front ammunition, but also to make sure that we are resupplying and backfilling our supplies that we have given to Ukraine.

SOUNDBITE (French), Thierry BRETON, European Commissioner for Internal Market, The European Union, via the heads of state and government, has decided therefore to undertake to deliver within 12 months a million shells to Ukraine. To be able to do just that, along with the High Representative Josep Borrell and, of course, with all of the ministers of Defence of the 27 Member States, we established a plan along the lines of three points.

SOUNDBITE (French), Thierry BRETON, European Commissioner for Internal Market, First and foremost, to continue to free up Member States stocks by mobilising 1 billion from the European Peace Facility. Second, common procurement again, one billion euros from the Peace Facility. And third, make sure that we can ramp-up our industrial production. Because, we all know very well that signing a contract altogether is not enough, is no longer enough to make sure that we can actually deliver on time and up to the volume what is needed.

SOUNDBITE (French), Thierry BRETON, European Commissioner for Internal Market, We must continue to support production capacity and continue to foster that ramp-up. It is therefore to assist our industry in this, that I began a tour of visits in the field to understand precisely what our industrial capacity was here in Europe. I have already been to 15 places in Europe, in various countries to understand firsthand and to challenge our industry, to understand exactly what they need to be able to do this ramp-up and to be able to speed up their production.

SOUNDBITE (French), Thierry BRETON, European Commissioner for Internal Market, Ladies and gentlemen, President, the main lessons that I have learned from these visits are as follows and I should like to deliver them to you this evening. First and foremost, we have production capacity in Europe. No doubt. That is the fruit of our history, of course. But we have also seen that the Member States have worked towards having production autonomy. But, we have seen that there is the dividend of peace. There is a ramp-down then, and a step much of our industry is contracted to other countries that are not members of the European Union.

SOUNDBITE (French), Thierry BRETON, European Commissioner for Internal Market, Third, and I should like to give you my direct testimony. I have seen that there is a real will to ramp-up. I was able to see that yet again this morning when I was in Spain. I just came back from Spain. And I've just arrived here. But, the issue is that we're not able to supply on time and the base of our needs. Therefore, we need to take the industrial basis and assist it for that ramp-up to move it to a wartime economym if you allow me to put it in those terms.

SOUNDBITE (French), Thierry BRETON, European Commissioner for Internal Market, Forth, we need to be able to look at the speeding up of our supply chain. When it comes, of course, to all of the components that we will need powder, explosives, but also the machines and the tools that are going to be necessary for the entire process.

SOUNDBITE (French), Thierry BRETON, European Commissioner for Internal Market, Finally, based on these visits in the field, what I can state to you tonight is that I believe firmly that within the 12 month timeframe, with the support and with the ramp-up that is necessary, we will be able to meet that one million mark in Europe to supply those ammunitions, to support Ukraine and its needs and its immediate needs. That have been given to us directly.

SOUNDBITE (French), Thierry BRETON, European Commissioner for Internal Market, We need to make sure that we are catering this ramp-up to Ukraine specifically, and it's via these lessons that the Commission last week came forward with a proposal to support ammunition production for our Member States for Ukraine. An initiative that we have decided to call ASAP and it is focussed on two pillars.

SOUNDBITE (French), Thierry BRETON, European Commissioner for Internal Market, The first pillar is a programming pillar. We are going to have a program that will assist industrial projects directly to make sure that we can ensure this European industrial ramp-up, an expansion or modernisation of all of the supply lines that we already have, establishing new supply lines, production lines and also, reconditioning of old ammunition, and also making sure that we can maintain those supply value chains.

SOUNDBITE (French), Thierry BRETON, European Commissioner for Internal Market, So, we are going to have a co-financing, making sure that we have 1 billion in public financing and with a principle of co-financing with the Member States. Were they to wish to avail of this, the member states will be able to use cohesion funds, as well as our funds to finance these products. We are going to mobilise all the stakeholders to make sure that there is access to financing for the defence industry.

SOUNDBITE (French), Thierry BRETON, European Commissioner for Internal Market, The second pillar is a regulatory pillar. Now for a temporary period of time we are going to lift some regulation barriers, for example, licensing, public procurement and transfer within the single market for ammunitions. We are also going to assist, as we did with the CHIP Act. We will be reorienting current production towards the needs of Europe and Ukraine.

SOUNDBITE (French), Thierry BRETON, European Commissioner for Internal Market, We're also calling on businesses to do this voluntarily. All the while placing the possibility of using mandatory measures if and when necessary. Ladies and gentlemen, the success of this plan will very much depend on our ability to execute it swiftly.

SOUNDBITE (French), Thierry BRETON, European Commissioner for Internal Market, The Commission has made a choice. Contrary to many voices that spoke out against this, and despite the absolute urgency in coming forward with this proposal, and the Council jointly, we determined that this was the course of action necessary. We believe that codecision is a way to move swiftly, but I'd like to state clearly we have a collective obligation to come up with results, and to find an agreement with the council by June.

SOUNDBITE (French), Thierry BRETON, European Commissioner for Internal Market, We all know well, what is happening in Ukraine affects not just those in Ukraine, but all of us in Europe. Therefore, I welcome the fact that you have put forth Rule 163 procedure to have an urgent vote. And I hope that the vote will be positive tomorrow, and I count on you.

SOUNDBITE (French), Thierry BRETON, European Commissioner for Internal Market, Now, I will also support the urgency of this in the Conference of Presidents on Thursday morning. I understand that this is ambitious, but we know that this situation requires it and is not prosaic.

SOUNDBITE (French), Thierry BRETON, European Commissioner for Internal Market, The reality on the ground in Ukraine means that all of us have to be ambitious. And we also need to take any way forward and possible to move swiftly, all the while respecting our democracy, because, of course, democracy is precisely what we are talking about here. Thank you.