Currently, European countries lack the capacity to increase defense production, and in order to address this issue, legislative changes will be necessary, according to the executive director of Norwegian-Finnish arms manufacturer Nammo, Morten Brandtzaeg. Financial Times (FT) quotes him as saying that his company is expected to receive government support from Norway, Finland, and the EU amounting to over €300 million, which exceeds the company’s investments over the past decade. Additionally, Nammo itself invests around €150 million each year.
“In my opinion, we need to further increase [production]. We need to do it faster. <...> We are in an industrial war for capacity,” said the head of Nammo.
According to him, the capacity shortage issue can be solved by enacting legislation similar to that of the United States. US legislation allows the president to order defense companies to prioritize government contracts. This enables companies to have priority access to the necessary equipment.
Previously, it was reported that the EU Heads of State Summit on March 21-22 would make a decision to shift the EU’s economy towards a military focus. This was announced by the President of the European Council, Charles Michel, who emphasized that EU countries need to spend more and procure more weapons together and more effectively.
Earlier, it was revealed that the European Union has increased its production of ammunition to 1 million per year.
Article:
European Countries Face Defense Production Challenges, Calls for Legislative Changes
European countries are currently grappling with a shortage of capabilities to ramp up defense production. Morten Brandtzaeg, the executive director of Norwegian-Finnish arms manufacturer Nammo, believes that legislative changes are necessary to address this issue. Brandtzaeg’s comments come at a time when his company is expected to receive substantial government support exceeding €300 million from Norway, Finland, and the European Union, surpassing the company’s decade-long investments. Nammo itself also invests approximately €150 million annually.
Brandtzaeg emphasized the urgency of the situation, stating, “In my opinion, we need to further increase [production]. We need to do it faster. We are in an industrial war for capacity.” To tackle the capacity shortage, he proposed implementing legislation similar to that of the United States, which allows the president to prioritize defense contracts for companies. This would ensure priority access to necessary equipment.
The issue of defense production has gained significant attention in Europe, with discussions taking place at the EU Heads of State Summit on March 21-22. During the summit, European Council President Charles Michel highlighted the need for EU countries to shift their economies towards a military focus. Michel emphasized the importance of increased spending and more efficient procurement of weapons among EU member states.
Efforts to boost defense production have already been observed within the European Union. The EU recently announced that it has increased its annual production of ammunition to 1 million units. However, the existing capacity limitations necessitate further action to meet the growing demand.
As Europe faces these challenges, it becomes evident that legislative reforms are crucial to overcome the capacity constraints in defense production. The proposed changes, akin to those implemented in the United States, would enable European nations to enhance their defense capabilities and ensure priority access to essential equipment. Timely and effective measures are essential to meet the evolving security needs of the region, as Europe finds itself in an industrial war for capacity.
