Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on 
establishing the Act in Support of Ammunition Production 
2023/0140(COD) 
Non-versioned [LATEST TEXT] 
28-06-2023  
 
 
 
 
Commission Proposal 
EP Mandate 
Council Mandate 
Draft Agreement 
 
  Formula 
 
 
 
 
 
 
1 
2023/0140 (COD) 
2023/0140 (COD) 
2023/0140 (COD) 
 
 
 
 
 
  Proposal Title 
 
 
 
 
 
Proposal for a 
Proposal for a 
Proposal for a 
 
REGULATION OF THE 
REGULATION OF THE 
REGULATION OF THE 
EUROPEAN PARLIAMENT AND 
EUROPEAN PARLIAMENT AND 
EUROPEAN PARLIAMENT AND 
 
2 
OF THE COUNCIL 
OF THE COUNCIL 
OF THE COUNCIL 
 
on establishing the Act in Support of  on establishing the Act in Support of  on establishing the Act in Support of 
Ammunition Production 
Ammunition Production 
on supporting ammunition 
 
 
production (ASAP) 
 
  Formula 
 
 
 
 
 
THE EUROPEAN PARLIAMENT 
THE EUROPEAN PARLIAMENT 
THE EUROPEAN PARLIAMENT 
 
 
3 
AND THE COUNCIL OF THE 
AND THE COUNCIL OF THE 
AND THE COUNCIL OF THE 
 
EUROPEAN UNION, 
EUROPEAN UNION, 
EUROPEAN UNION, 
 
 
 
  Citation 1 
 
 
 
 
 
Having regard to the Treaty on the 
Having regard to the Treaty on the 
Having regard to the Treaty on the 
 
 
4 
Functioning of the European Union, 
Functioning of the European Union, 
Functioning of the European Union, 
 
and in particular Articles 114 and 
and in particular Articles 114 and 
and in particular Articles 114 and 
173(3) thereof, 
173(3) thereof, 
173(3) thereof, 
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on establishing the Act in Support of Ammunition Production   2023/0140(COD)   22‐06‐2023 at 18h43    1/112 

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Commission Proposal 
EP Mandate 
Council Mandate 
Draft Agreement 
 
 
 
 
  Citation 2 
 
 
 
 
 
Having regard to the proposal from 
Having regard to the proposal from 
Having regard to the proposal from 
 
 
5 
 
the European Commission, 
the European Commission, 
the European Commission, 
 
 
 
  Citation 3 
 
 
 
 
 
After transmission of the draft 
After transmission of the draft 
After transmission of the draft 
 
 
6 
legislative act to the national 
legislative act to the national 
legislative act to the national 
 
parliaments, 
parliaments, 
parliaments, 
 
 
 
  Citation 4 
 
 
 
 
 
Having regard to the opinion of the 
Having regard to the opinion of the 
Having regard to the opinion of the 
 
European Economic and Social 
European Economic and Social 
European Economic and Social 
 
7 
Committee1, 
Committee1, 
Committee1 , 
 
_________ 
_________ 
_________ 
1. OJ C , , p. . 
1. OJ C , , p. . 
1. OJ C , , p. . 
 
 
 
  Citation 5 
 
 
 
 
 
Acting in accordance with the 
Acting in accordance with the 
Acting in accordance with the 
 
 
8 
 
ordinary legislative procedure, 
ordinary legislative procedure, 
ordinary legislative procedure, 
 
 
 
  Formula 
 
 
 
 
 
 
9 
Whereas: 
Whereas: 
Whereas: 
 
 
 
 
 
  Recital 1 
 
 
 
 
 
 
10 
 
(1)  The Russian war of aggression 
(1)  The Russian war of aggression 
(1)  The Russian war of aggression 
 
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on establishing the Act in Support of Ammunition Production   2023/0140(COD)   22‐06‐2023 at 18h43    2/112 

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Commission Proposal 
EP Mandate 
Council Mandate 
Draft Agreement 
 
against Ukraine has put the 
against Ukraine has put the 
against Ukraine has put the 
European defence industry and 
European defence industry and 
European defence industry and 
equipment market to the test and 
equipment market to the test and 
equipment market to the test and 
exposed a number of flaws. Those 
exposed a number of flaws. Those 
exposed a number of flaws. Those 
undermine their ability to satisfy in 
undermine their ability to satisfy in 
undermine their ability to satisfy in 
the requisite secure and timely 
the requisite secure and timely 
the requisite secure and timely 
manner the Member States urgent 
manner the Member States urgent 
manner the Member States urgent 
needs for defence products and 
needs for defence products and 
needs for defence products and 
systems such as ammunition and 
systems such as ammunition and 
systems such as ammunition and 
missiles, considering the high 
missiles, considering the high 
missiles, considering the high 
consumption rate of those products 
consumption rate of those products 
consumption rate of those products 
or systems during a high intensity 
or systems during a high intensity 
or systems during a high intensity 
conflict. 
conflict.  
conflict. 
 
 
 
  Recital 2 
 
 
 
 
 
(2)  Since 24 February 2022 the 
(2)  Since 24 February 2022 the 
(2)  Since 24 February 2022 the 
 
Union and its Member States have 
Union and its Member States have 
Union and its Member States have 
been steadily stepping up their 
been steadily stepping up their 
been steadily stepping up their 
efforts to help meet Ukraine’s 
efforts to help meet Ukraine’s 
efforts to help meet Ukraine’s 
pressing defence needs. 
pressing defence needs. 
pressing defence needs. 
Furthermore, in this context, 
Furthermore, in this context, 
Furthermore, in this context, 
confronted with growing instability, 
confronted with growing instability, 
confronted with growing instability, 
strategic competition and security 
strategic competition and security 
strategic competition and security 
threats, the Union Heads of State or 
threats, the Union Heads of State or 
threats, the Union Heads of State or 
Government, meeting in Versailles 
Government, meeting in Versailles 
Government, meeting in Versailles 
 
11 
 
on 11 March 2022, decided to take 
on 11 March 2022, decided to take 
on 11 March 2022, decided to take 
more responsibility for the Union 
more responsibility for the Union 
more responsibility for the Union 
own security and take further 
own security and take further 
own security and take further 
decisive steps towards building 
decisive steps towards building 
decisive steps towards building 
European sovereignty. They 
European sovereignty. They 
European sovereignty. They 
committed to “bolster European 
committed to “bolster European 
committed to "bolster European 
defence capabilities”, agreed to 
defence capabilities”, agreed to 
defence capabilities", agreed to 
increase defence expenditures, step 
increase defence expenditures, step 
increase defence expenditures, step 
up cooperation through joint 
up cooperation through joint 
up cooperation through joint 
projects, and common procurement 
projects, and common procurement 
projects, and common procurement 
of defence capabilities, close 
of defence capabilities, close 
of defence capabilities, close 
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on establishing the Act in Support of Ammunition Production   2023/0140(COD)   22‐06‐2023 at 18h43    3/112 

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Commission Proposal 
EP Mandate 
Council Mandate 
Draft Agreement 
 
shortfalls, boost innovation and 
shortfalls, boost innovation and 
shortfalls, boost innovation and 
strengthen and develop the Union 
strengthen and develop the Union 
strengthen and develop the Union 
defence industry. On 21 March 
defence industry. On 21 March 
defence industry. On 21 March 
2022, the “Strategic Compass for a 
2022, the “Strategic Compass for a 
2022, the "Strategic Compass for a 
stronger Union security and defence 
stronger Union security and defence 
stronger Union security and defence 
in the next decade” was approved by  in the next decade” was approved by  in the next decade" was approved by 
the Council, and subsequently 
the Council, and subsequently 
the Council, and subsequently 
endorsed by the European Council 
endorsed by the European Council 
endorsed by the European Council 
on 24 March 2022. The Strategic 
on 24 March 2022. The Strategic 
on 24 March 2022. The Strategic 
Compass stresses the need to 
Compass stresses the need to 
Compass stresses the need to 
increase defence spending and invest  increase defence spending and invest  increase defence spending and invest 
more in capabilities, both at the 
more in capabilities, both at the 
more in capabilities, both at the 
Union and national levels. 
Union and national levels. 
Union and national levels. 
 
 
 
  Recital 3 
 
 
 
 
 
(3)  The Commission and the High 
(3)  The Commission and the High 
(3)  The Commission and the High 
 
Representative presented a Joint 
Representative presented a Joint 
Representative presented a Joint 
Communication on “The Defence 
Communication on “The Defence 
Communication on "The Defence 
Investment Gaps Analysis and Way 
Investment Gaps Analysis and Way 
Investment Gaps Analysis and Way 
Forward” on 18 May 2022 
Forward” on 18 May 2022 
Forward" on 18 May 2022 
highlighting the existence, within the  highlighting the existence, within the  highlighting the existence, within the 
Union, of defence financial, 
Union, of defence financial, 
Union, of defence financial, 
industrial and capability gaps. In 
industrial and capability gaps. In 
industrial and capability gaps. In 
July 2022 the Commission presented  July 2022 the Commission presented  July 2022 the Commission presented 
the European Defence Industrial 
the European Defence Industrial 
the European Defence Industrial 
 
12 
 
Reinforcement through common 
Reinforcement through common 
Reinforcement through common 
Procurement Act (EDIRPA), aimed 
Procurement Act (EDIRPA), aimed 
Procurement Act (EDIRPA), aimed 
at supporting collaboration between 
at supporting collaboration between 
at supporting collaboration between 
Member States in the procurement 
Member States in the procurement 
Member States in the procurement 
phase to fill the most urgent and 
phase to fill the most urgent and 
phase to fill the most urgent and 
critical gaps, especially those created  critical gaps, especially those created  critical gaps, especially those created 
by the response to the current 
by the response to the current 
by the response to the current 
Russia’s aggression, in a 
Russia’s aggression, in a 
Russia’s aggression, in a 
collaborative way. EDIRPA will 
collaborative way. EDIRPA will 
collaborative way. EDIRPA will 
contribute to reinforce common 
contribute to reinforce common 
contribute to reinforce common 
defence procurement and, through 
defence procurement and, through 
defence procurement and, through 
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on establishing the Act in Support of Ammunition Production   2023/0140(COD)   22‐06‐2023 at 18h43    4/112 

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Commission Proposal 
EP Mandate 
Council Mandate 
Draft Agreement 
 
the associated Union financing, to 
the associated Union financing, to 
the associated Union financing, to 
strengthen Union defence industrial 
strengthen Union defence industrial 
strengthen Union defence industrial 
capacities and the adaptation of 
capacities and the adaptation of 
capacities and the adaptation of 
Union’s defence industry to 
Union’s defence industry to 
Union’s defence industry to 
structural market changes resulting 
structural market changes resulting 
structural market changes resulting 
from increased demand due to new 
from increased demand due to new 
from increased demand due to new 
challenges, such as the return of high  challenges, such as the return of high  challenges, such as the return of high 
intensity conflict. 
intensity conflict. 
intensity conflict. 
 
 
 
  Recital 4 
 
 
 
 
 
(4)  In light of the situation in 
(4)  In light of the situation in 
(4)  In light of the situation in 
 
Ukraine and of its pressing defence 
Ukraine and of its pressing defence 
Ukraine and of its pressing defence 
needs in particular for ammunition, 
needs in particular for ammunition, 
needs in particular for ammunition, 
the Council of 20 March 2023 
the Council of 20 March 2023 
the Council of 20 March 2023 
agreed on a three-track approach, 
agreed on a three-track approach, 
agreed on a three-track approach, 
aiming at providing one million 
aiming at providing one million 
aiming at providing one million 
rounds of artillery ammunition for 
rounds of artillery ammunition for 
rounds of artillery ammunition for 
Ukraine in a joint effort within the 
Ukraine in a joint effort within the 
Ukraine in a joint effort within the 
next twelve months. It agreed to 
next twelve months. It agreed to 
next twelve months. It agreed to 
urgently deliver ground-to-ground 
urgently deliver ground-to-ground 
urgently deliver ground-to-ground 
and artillery ammunition to Ukraine 
and artillery ammunition to Ukraine 
and artillery ammunition to Ukraine 
and, if requested, missiles from 
and, if requested, missiles from 
and, if requested, missiles from 
 
13 
existing stocks or the reprioritisation  existing stocks or the reprioritisation  existing stocks or the reprioritisation 
 
of existing orders. It further called 
of existing orders. It further called 
of existing orders. It further called 
on Member States to jointly procure 
on Member States to jointly procure 
on Member States to jointly procure 
ammunition and if requested 
ammunition and if requested 
ammunition and if requested 
missiles from the European defence 
missiles from the European defence 
missiles from the European defence 
industry (and Norway) in the context  industry (and Norway) in the context  industry (and Norway) in the context 
of an existing European Defence 
of an existing European Defence 
of an existing European Defence 
Agency (EDA) project or through 
Agency (EDA) project or through 
Agency (EDA) project or through 
complementary Member States-led 
complementary Member States-led 
complementary Member States-led  
acquisition projects, in order to refill  acquisition projects, in order to refill  acquisition projects, in order to refill 
their stocks while enabling the 
their stocks while enabling the 
their stocks while enabling the 
continuation of support to Ukraine. 
continuation of support to Ukraine. 
continuation of support to Ukraine. 
To support these efforts, the Council  To support these efforts, the Council  To support these efforts, the Council 
agreed to mobilise appropriate 
agreed to mobilise appropriate 
agreed to mobilise appropriate 
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on establishing the Act in Support of Ammunition Production   2023/0140(COD)   22‐06‐2023 at 18h43    5/112 

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Commission Proposal 
EP Mandate 
Council Mandate 
Draft Agreement 
 
funding including through the 
funding including through the 
funding including through the 
European Peace Facility (EPF). The 
European Peace Facility (EPF). The 
European Peace Facility (EPF). The 
Council also tasked the Commission  Council also tasked the Commission  Council also tasked the Commission 
to present concrete proposals to 
to present concrete proposals to 
to present concrete proposals to 
urgently support the ramp-up of 
urgently support the ramp-up of 
urgently support the ramp-up of 
manufacturing capacities of the 
manufacturing capacities of the 
manufacturing capacities of the 
European defence industry, secure 
European defence industry, secure 
European defence industry, secure 
supply chains, facilitate efficient 
supply chains, facilitate efficient 
supply chains, facilitate efficient 
procurement procedures, address 
procurement procedures, address 
procurement procedures, address 
shortfalls in production capacities 
shortfalls in production capacities 
shortfalls in production capacities 
and promote investments, including,  and promote investments, including,  and promote investments, including, 
where appropriate, mobilising the 
where appropriate, mobilising the 
where appropriate, mobilising the 
Union budget. The latter is essential 
Union budget. The latter is essential 
Union budget. The latter is essential 
in order to ensure that the Union 
in order to ensure that the Union 
in order to ensure that the Union 
own security needs are adequately 
own security needs are adequately 
own security needs are adequately 
met at all times and the Union 
met at all times and the Union 
met at all times and the Union 
defence industry and internal market  defence industry and internal market  defence industry and internal market 
are up to the current changes. The 
are up to the current changes. The 
are up to the current changes. The 
three interlinked tracks need to be 
three interlinked tracks need to be 
three interlinked tracks need to be 
pursued in parallel and in a 
pursued in parallel and in a 
pursued in parallel and in a 
coordinated way. Regular meetings 
coordinated way. Regular meetings 
coordinated way. Regular meetings 
at the level of National Armament 
at the level of National Armament 
at the level of National Armament 
Directors with the Defence Joint 
Directors with the Defence Joint 
Directors with the Defence Joint 
Procurement Task Force 
Procurement Task Force 
Procurement Task Force  
(Commission, EEAS, EDA) will 
(Commission, EEAS, EDA) will 
(Commission, EEAS, EDA) will 
also be organised to assess the needs  also be organised to assess the needs  also be organised to assess the needs 
and industrial capabilities as well as 
and industrial capabilities as well as 
and industrial capabilities as well as 
ensure the necessary close 
ensure the necessary close 
ensure the necessary close 
coordination, to ensure an adequate 
coordination, to ensure an adequate 
coordination, to ensure an adequate  
implementation of the three tracks. 
implementation of the three tracks. 
implementation of the three tracks. 
 
 
 
  Recital 5 
 
 
 
 
 
(5)  On 13 April 2023, the Council 
(5)  On 13 April 2023, the Council 
(5)  On 13 April 2023, the Council 
 
 
14 
adopted an assistance measure under  adopted an assistance measure under  adopted an assistance measure under 
 
the EPF worth EUR 1 billion to 
the EPF worth EUR 1 billion to 
the EPF worth EUR 1 billion to 
support the Ukrainian Armed 
support the Ukrainian Armed 
support the Ukrainian Armed 
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on establishing the Act in Support of Ammunition Production   2023/0140(COD)   22‐06‐2023 at 18h43    6/112 

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Commission Proposal 
EP Mandate 
Council Mandate 
Draft Agreement 
 
Forces, allowing for the 
Forces, allowing for the 
Forces, allowing for the 
reimbursement to Member States of 
reimbursement to Member States of 
reimbursement to Member States of 
ground-to-ground and artillery 
ground-to-ground and artillery 
ground-to-ground and artillery 
ammunition, and possibly missiles, 
ammunition, and possibly missiles, 
ammunition, and possibly missiles, 
donated to Ukraine from existing 
donated to Ukraine from existing 
donated to Ukraine from existing 
stocks or from the reprioritisation of  stocks or from the reprioritisation of  stocks or from the reprioritisation of 
existing orders during the period 9 
existing orders during the period 9 
existing orders during the period  
February to 31 May 2023. On joint 
February to 31 May 2023. On joint 
9 February to 31 May 2023. On joint 
procurement, thus far 24 Member 
procurement, thus far 24 Member 
procurement, thus far 24 Member 
States plus Norway signed the 
States plus Norway signed the 
States plus Norway signed the 
EDA’s Project Arrangement for the 
EDA’s Project Arrangement for the 
EDA’s Project Arrangement for the 
collaborative procurement of 
collaborative procurement of 
collaborative procurement of 
ammunition. 
ammunition. 
ammunition. 
 
 
 
  Recital 6 
 
 
 
 
 
(6)  Joint efforts to enable Member 
(6)  Joint efforts to enable Member 
(6)  Joint efforts to enable Member 
 
States to replenish their depleted 
States to replenish their depleted 
States to replenish their depleted 
stocks and to support Ukraine can 
stocks and to support Ukraine can 
stocks and to support Ukraine can 
only be effective if the Union supply  only be effective if the Union supply  only be effective if the Union supply 
side can deliver on time the required  side can deliver on time the required  side can deliver on time the required 
defence products. But, with stocks 
defence products. But, with stocks 
defence products. But, with stocks 
rapidly dwindling, European 
rapidly dwindling, European 
rapidly dwindling, European 
 
15 
 
production almost at maximum 
production almost at maximum 
production almost at maximum 
capacity from Member States or 
capacity from Member States or 
capacity from Member States or 
third countries’ orders, and prices 
third countries’ orders, and prices 
third countries’ orders, and prices 
already spiralling, additional Union 
already spiralling, additional Union 
already spiralling, additional Union 
industrial policy measures are 
industrial policy measures are 
industrial policy measures are 
necessary to ensure a rapid ramp-up 
necessary to ensure a rapid ramp-up 
necessary to ensure a rapid ramp-up 
of manufacturing capabilities. 
of manufacturing capabilities. 
of manufacturing capabilities. 
 
 
 
  Recital 7 
 
 
 
 
 
(7)  As highlighted by the work of 
(7)  As highlighted by the work of 
(7)  As highlighted by the work of 
 
 
16 
 
the Defence Joint Procurement Task  the Defence Joint Procurement Task  the Defence Joint Procurement Task 
Force (Commission, EEAS, EDA) 
Force (Commission, EEAS, EDA) 
Force (Commission, EEAS, EDA) 
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on establishing the Act in Support of Ammunition Production   2023/0140(COD)   22‐06‐2023 at 18h43    7/112 

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Commission Proposal 
EP Mandate 
Council Mandate 
Draft Agreement 
 
on coordinating very short-term 
on coordinating very short-term 
on coordinating very short-term 
defence procurement needs and 
defence procurement needs and 
defence procurement needs and 
engaging with Member States and 
engaging with Member States and 
engaging with Member States and 
Union defence manufacturers to 
Union defence manufacturers to 
Union defence manufacturers to 
support common procurement to 
support common procurement to 
support common procurement to 
replenish stocks, notably in light of 
replenish stocks, notably in light of 
replenish stocks, notably in light of 
the support provided to Ukraine, the 
the support provided to Ukraine, the 
the support provided to Ukraine, the 
Union industry has manufacturing 
Union industry has manufacturing 
Union industry has manufacturing 
capacities in the area of ground to 
capacities in the area of ground to 
capacities in the area of ground to 
ground and artillery ammunition, as 
ground and artillery ammunition, as 
ground and artillery ammunition, as 
well as missiles. However, 
well as missiles. However, 
well as missiles. However, 
production capacities within the 
production capacities within the 
production capacities within the 
Union’s defence industry sector have  Union’s defence industry sector have  Union’s defence industry sector have 
been tailored for times different 
been tailored for times different 
been tailored for times different 
from the current challenges posed to  from the current challenges posed to  from the current challenges posed to 
the Union. Supply flows have been 
the Union. Supply flows have been 
the Union. Supply flows have been 
adapted according to a more modest 
adapted according to a more modest 
adapted according to a more modest  
demand, with minimal level of 
demand, with minimal level of 
demand, with minimal level of 
stocks and diversified suppliers 
stocks and diversified suppliers 
stocks and diversified suppliers 
globally to reduce costs, exposing 
globally to reduce costs, exposing 
globally to reduce costs, exposing 
the Union’s defence industry sector 
the Union’s defence industry sector 
the Union’s defence industry sector 
to dependencies. As a consequence, 
to dependencies. As a consequence, 
to dependencies. As a consequence, 
in this context, the current 
in this context, the current 
in this context, the current 
manufacturing capacity and the 
manufacturing capacity and the 
manufacturing capacity and the 
existing supply and value chains do 
existing supply and value chains do 
existing supply and value chains do 
not allow for a secure and timely 
not allow for a secure and timely 
not allow for a secure and timely 
delivery of defence products to meet  delivery of defence products to meet  delivery of defence products to meet 
the Member States’ needs for their 
the Member States’ needs for their 
the Member States’ needs for their 
security requirement and for 
security requirement and for 
security requirement and for 
continuing supporting Ukrainian 
continuing supporting Ukrainian 
continuing supporting Ukrainian 
needs, creating tensions on the 
needs, creating tensions on the 
needs, creating tensions on the 
market of ground-to-ground and 
market of ground-to-ground and 
market of ground-to-ground and 
artillery ammunition as well as 
artillery ammunition as well as 
artillery ammunition as well as 
missiles, and a risk of crowding-out 
missiles, and a risk of crowding-out 
missiles, and a risk of crowding-out 
effect. An additional intervention at 
effect. An additional intervention at 
effect. An additional intervention at 
Union level is therefore necessary. 
Union level is therefore necessary. 
Union level is therefore necessary. 
 
 
 
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on establishing the Act in Support of Ammunition Production   2023/0140(COD)   22‐06‐2023 at 18h43    8/112 

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Commission Proposal 
EP Mandate 
Council Mandate 
Draft Agreement 
 
  Recital 8 
 
 
 
 
 
(8)  In accordance with Article 
(8)  In accordance with Article 
(8)  In accordance with Article 
 
173(3)TFEU, the Union industrial 
173(3)TFEU, the Union industrial 
173(3)TFEU, the Union industrial 
policy pursues the objective of 
policy pursues the objective of 
policy pursues the objective of 
speeding up the adjustment of 
speeding up the adjustment of 
speeding up the adjustment of 
industry to structural changes. 
industry to structural changes. 
industry to structural changes. 
Therefore, it appears appropriate to 
Therefore, it appears appropriate to 
Therefore, it appears appropriate to 
support Union industry to increase 
support Union industry to increase 
support Union industry to increase 
its volume of production, reduce its 
its volume of production, reduce its 
its volume of production, reduce its 
 
17 
delivery lead-time and address 
delivery lead-time and address 
delivery lead-time and address 
 
potential bottlenecks and/or factors 
potential bottlenecks and/or factors 
potential bottlenecks and/or factors 
that could delay or impede the 
that could delay or impede the 
that could delay or impede the 
supply and production of  ground-to- supply and production of   ground-
supply and production of   ground-
ground and artillery ammunition as 
to-ground and artillery ammunition 
to-ground and artillery ammunition 
well as missiles which are 
as well as missiles which are 
as well as missiles which are 
considered as relevant defence 
considered as relevant defence 
considered as relevant defence 
products for the purpose of this 
products for the purpose of this 
products for the purpose of this 
Regulation. 
Regulation. 
Regulation. 
 
 
 
  Recital 9 
 
 
 
 
 
(9)  The measures taken at Union 
(9)  The measures taken at Union 
(9)  The measures taken at Union 
 
level should aim at reinforcing the 
level should aim at reinforcing the 
level should aim at reinforcing the 
competitiveness and resilience of the  competitiveness and resilience of the  competitiveness and resilience of the 
European Defence Technological 
European Defence Technological 
European Defence Technological 
and Industrial Base (EDTIB) in the 
and Industrial Base (EDTIB) in the 
and Industrial Base (EDTIB) in the 
 
18 
field of ammunition and missiles, to 
field of ammunition and missiles, to 
field of ammunition and missiles, to 
 
allow its urgent adaptation to 
allow its urgent adaptation to 
allow its urgent adaptation to the 
structural change. 
structural change.  
structural change revealed or 
 
 
exacerbated by the response to the 
Russian aggression against 
Ukraine. 
 
  Recital 10 
 
 
19 
 
 
 
 
 
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on establishing the Act in Support of Ammunition Production   2023/0140(COD)   22‐06‐2023 at 18h43    9/112 

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Commission Proposal 
EP Mandate 
Council Mandate 
Draft Agreement 
 
(10)  To that end, an instrument for 
(10)  To that end, an instrument for 
(10)  To that end, an instrument for 
 
financially supporting the industry 
financially supporting the industry 
financially supporting the industry 
reinforcement throughout the supply  reinforcement throughout the supply  reinforcement throughout the supply 
and value chains related to the 
and value chains related to the 
and value chains related to the 
production of these relevant defence  production of these relevant defence  production of these relevant defence 
products in the Union (the 
products in the Union (the 
products in the Union (the 
‘Instrument’) should be established. 
‘Instrument’) should be established.   ‘Instrument’) should be established. 
 
 
 
  Recital 11 
 
 
 
 
 
(11)  The Instrument will be 
(11)  The Instrument will be 
(11)  The Instrument will be 
 
coherent with existing collaborative 
coherent with existing collaborative 
coherent with existing collaborative 
EU defence-related initiatives such 
EU defence-related initiatives such 
EU defence-related initiatives such 
as in the European Defence Fund, 
as in the European Defence Fund, 
as in the European Defence Fund, 
the proposed European defence 
the proposed European defence 
the proposed European defence 
 
20 
industry Reinforcement through 
industry Reinforcement through 
industry Reinforcement through 
 
common Procurement Act, as well 
common Procurement Act, as well 
common Procurement Act, as well 
as the EPF and generates synergies 
as the EPF and generates synergies 
as the EPF and generates synergies 
with other Union programmes. The 
with other Union programmes. The 
with other Union programmes. The 
Instrument is fully coherent with the  Instrument is fully coherent with the  Instrument is fully coherent with the 
ambition of the Strategic Compass. 
ambition of the Strategic Compass. 
ambition of the Strategic Compass. 
 
 
 
  Recital 12 
 
 
 
 
 
(12)  Regulation (EU, Euratom) 
(12)  Regulation (EU, Euratom) 
(12)  Regulation (EU, Euratom) 
 
2018/1046 of the European 
2018/1046 of the European 
2018/1046 of the European 
 
21 
Parliament and of the Council 
Parliament and of the Council 
Parliament and of the Council 
 
should apply to this Instrument, 
should apply to this Instrument, 
should apply to this Instrument, 
unless otherwise specified. 
unless otherwise specified. 
unless otherwise specified. 
 
 
 
  Recital 13 
 
 
 
 
 
(13)  In accordance with Article 
(13)  In accordance with Article 
(13)  In accordance with Article 
 
 
22 
 
193(2) of Regulation (EU, Euratom)  193(2) of Regulation (EU, Euratom)  193(2) of Regulation (EU, Euratom) 
2018/1046, a grant may be awarded 
2018/1046, a grant may be awarded 
2018/1046, a grant may be awarded 
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on establishing the Act in Support of Ammunition Production   2023/0140(COD)   22‐06‐2023 at 18h43    10/112 

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Commission Proposal 
EP Mandate 
Council Mandate 
Draft Agreement 
 
for an action which has already 
for an action which has already 
for an action which has already 
begun, provided that the applicant 
begun, provided that the applicant 
begun, provided that the applicant 
can demonstrate the need for starting  can demonstrate the need for starting  can demonstrate the need for starting 
the action prior to signature of the 
the action prior to signature of the 
the action prior to signature of the 
grant agreement. However, a 
grant agreement. However, a 
grant agreement. However, a 
financial contribution should not 
financial contribution should not 
financial contribution should not 
cover a period prior to the date of 
cover a period prior to the date of 
cover a period prior to the date of 
submission of the grant application, 
submission of the grant application, 
submission of the grant  
except in duly justified exceptional 
except in duly justified exceptional 
application, except in duly justified 
cases. In order to address the call of 
cases. In order to address the call of 
exceptional cases. In order to 
the Council on 20 March 2023 to 
the Council on 20 March 2023 to 
address the call of the Council on 20 
speed up the delivery of relevant 
speed up the delivery of relevant 
March 2023 to speed up the delivery 
defence products, it should be 
defence products, it should be 
of relevant defence products, it 
possible to provide in the financing 
possible to provide in the financing 
should be possible to provide in the 
decision for financial contributions 
decision for financial contributions 
financing decision for financial 
to actions that cover a period from 
to actions that cover a period from 
contributions to actions that cover a 
this date. 
this date. 
period from this date. 
 
 
 
  Recital 14 
 
 
 
 
 
(14)  This Regulation lays down a 
(14)  This Regulation lays down a 
(14)  This Regulation lays down a 
 
financial envelope for the 
financial envelope for the 
financial envelope for the 
Instrument, which is to constitute the  Instrument, which is to constitute the  Instrument, which is to constitute the 
prime reference amount, within the 
prime reference amount, within the 
prime reference amount, within the 
meaning of point 18 of the Inter-
meaning of point 18 of the Inter-
meaning of point 18 of the Inter-
institutional Agreement of 16 
institutional Agreement of 16 
institutional Agreement of 16 
December 2020 between the 
December 2020 between the 
December 2020 between the 
European Parliament, the Council 
European Parliament, the Council 
European Parliament, the Council 
 
23 
 
and the European Commission on 
and the European Commission on 
and the European Commission on 
budgetary discipline, on cooperation  budgetary discipline, on cooperation  budgetary discipline, on cooperation 
in budgetary matters and on sound 
in budgetary matters and on sound 
in budgetary matters and on sound 
financial management, as well as on 
financial management, as well as on 
financial management, as well as on 
new own resources, including a 
new own resources, including a 
new own resources, including a 
roadmap towards the introduction of  roadmap towards the introduction of  roadmap towards the introduction of 
new own resources1 
new own resources1 
new own resources12 
(Interinstitutional Agreement of 16 
(Interinstitutional Agreement of 16 
(Interinstitutional Agreement of 16 
December 2020), for the European 
December 2020), for the European 
December 2020), for the European 
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on establishing the Act in Support of Ammunition Production   2023/0140(COD)   22‐06‐2023 at 18h43    11/112 

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Commission Proposal 
EP Mandate 
Council Mandate 
Draft Agreement 
 
Parliament and for the Council 
Parliament and for the Council 
Parliament and for the Council 
during the annual budgetary 
during the annual budgetary 
during the annual budgetary 
procedure. 
procedure. 
procedure. 
_________ 
_________ 
_________ 
1. OJ L 433I, 22.12.2020, p. 28. 
1. OJ L 433I, 22.12.2020, p. 28. 
1. 2. OJ L 433I, 22.12.2020, p. 28. 
 
 
 
  Recital 15 
 
 
 
 
 
(15)  Member States may request 
(15)  Member States may request 
(15)  Member States may request 
 
transfers of resources allocated to 
transfers of resources allocated to 
transfers of resources allocated to 
them under shared management to 
them under shared management to 
them under shared  
the Instrument, subject to the 
the Instrument, subject to the 
management to the Instrument, 
conditions set out in the relevant 
conditions set out in the relevant 
subject to the conditions set out in 
provisions of the Regulation (EU) 
provisions of the Regulation (EU) 
the relevant provisions of the 
2021/1060 of the European 
2021/1060 of the European 
Regulation (EU) 2021/1060 of the 
Parliament and of the Council. This 
Parliament and of the Council. This 
European Parliament and of the 
could in particular be the case where  could in particular be the case where  Council. This could in particular be 
the production of relevant defence 
the production of relevant defence 
the case where the production of 
products faces specific market 
products faces specific market 
relevant defence products faces 
failures or suboptimal investment 
failures or suboptimal investment 
specific market failures or 
situations in the Member States’ 
situations in the Member States’ 
suboptimal investment situations in 
territories, notably in vulnerable and  territories, notably in vulnerable and  the Member States’ territories, 
 
24 
 
remote areas, and such resources 
remote areas, and such resources 
notably in vulnerable and remote 
contribute to the achievement of the 
contribute to the achievement of the 
areas, and such resources contribute 
objectives of the programme from 
objectives of the programme from 
to the achievement of  
which they are transferred. The 
which they are transferred. The 
the objectives of the programme 
possibilities laid out in Article 73(4)  possibilities laid out in Article 73(4)  from which they are transferred. The 
of Regulation (EU) 2021/1060 may 
of Regulation (EU) 2021/1060 may 
possibilities laid out in Article 73(4) 
be applied provided that the project 
be applied provided that the project 
of Regulation (EU) 2021/1060 may 
complies with the rules set out in 
complies with the rules set out in 
be applied provided that the project 
that Regulation and the scope of the 
that Regulation and the scope of the 
complies with the rules set out in 
ERDF and ESF+ as set out in the 
ERDF and ESF+ as set out in the 
that Regulation and the scope of the 
fund-specific regulations. In line 
fund-specific regulations. In line 
ERDF and ESF+ as set out in the 
with Article 24 of Regulation (EU) 
with Article 24 of Regulation (EU) 
fund-specific regulations. In line 
2021/1060, the Commission should 
2021/1060, the Commission should 
with Article 24 of Regulation (EU) 
assess the modified national 
assess the modified national 
2021/1060, the Commission should 
programmes submitted by the 
programmes submitted by the 
assess the modified national 
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on establishing the Act in Support of Ammunition Production   2023/0140(COD)   22‐06‐2023 at 18h43    12/112 

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Commission Proposal 
EP Mandate 
Council Mandate 
Draft Agreement 
 
Member State and make 
Member State and make 
programmes submitted by  
observations within two months. 
observations within two months. 
the Member State and make 
Given the urgency of the situation, 
Given the urgency of the situation, 
observations within two months. 
the Commission should strive to 
the Commission should strive to 
Given the urgency of the situation, 
conclude the assessment of the 
conclude the assessment of the 
the Commission should strive to 
modified national programmes 
modified national programmes 
conclude the assessment of the 
without undue delay. 
without undue delay.  
modified national programmes 
 
 
without undue delay. 
 
  Recital 16 
 
 
 
 
 
(16)  When proposing amended or 
(16)  When proposing amended or 
(16)  When proposing amended or 
 
new Recovery and Resilience Plans,  new Recovery and Resilience Plans, 
new Recovery and Resilience Plans, 
in accordance with Article 21 of 
in accordance with Article 21 of 
in accordance with Article 21 of 
Regulation (EU) 2021/241 of the 
Regulation (EU) 2021/241 of the 
Regulation (EU) 2021/241 of the 
European Parliament and of the 
European Parliament and of the 
European Parliament and of the 
Council1, Member States should be 
Council1, Member States should be 
Council13, Member States should be 
able to propose measures which also  able to propose measures which also  able to proposemay consider 
contribute to the objectives of this 
contribute to the objectives of this 
proposing measures which also 
instrument. To this end, measures 
instrument. To this end, measures 
contribute to the objectives of this 
linked to proposals submitted to a 
linked to proposals submitted to a 
instrument, in line with the 
call for proposals under the 
call for proposals under the 
purposes and requirements set by 
Instrument, which were awarded a 
Instrument, which were awarded a 
Council Decision 2020/2053, 
 
25 
Seal of Excellence in accordance 
Seal of Excellence in accordance 
Regulation (EU) 2020/2094 and 
 
with the Instrument, should 
with the Instrument, should 
Regulation (EU) 2021/241. To this 
particularly be considered by 
particularly be considered by 
end, measures linked to proposals 
Member States. 
Member States. 
submitted to a call for proposals 
_________ 
_________ 
under the Instrument, which were 
1. Regulation (EU) 2021/241 of the 
1. Regulation (EU) 2021/241 of the 
awarded a Seal of Excellence in 
European Parliament and of the Council of 
European Parliament and of the Council of 
accordance with the Instrument, 
12 February 2021 establishing the Recovery 
12 February 2021   
and Resilience Facility (OJ L 57, 18.2.2021, 
establishing the Recovery and Resilience 
should particularly be considered by 
p. 17–75).- 
Facility (OJ L 57, 18.2.2021, p. 17–75).- 
Member States. 
 
 
_________ 
1. 3. Regulation (EU) 2021/241 of the 
European Parliament and of the Council of 
12 February 2021 establishing the Recovery 
and Resilience Facility (OJ L 57, 18.2.2021, 
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on establishing the Act in Support of Ammunition Production   2023/0140(COD)   22‐06‐2023 at 18h43    13/112 

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Commission Proposal 
EP Mandate 
Council Mandate 
Draft Agreement 
 
p. 17–75). 
 
  Recital 17 
 
 
 
 
 
(17)  In accordance with Regulation 
(17)  In accordance with Regulation 
(17)  In accordance with Regulation 
 
(EU, Euratom) 2018/1046, 
(EU, Euratom) 2018/1046, 
(EU, Euratom) 2018/1046, 
Regulation (EU, Euratom) No 
Regulation (EU, Euratom) No 
Regulation (EU, Euratom) No 
883/2013 of the European 
883/2013 of the European 
883/2013 of the European 
Parliament and of the Council1 and 
Parliament and of the Council1 and 
Parliament and of the Council1 4and 
Council Regulations (EC, Euratom) 
Council Regulations (EC, Euratom) 
Council Regulations (EC, Euratom) 
No 2988/952, (Euratom, EC) No 
No 2988/952 , (Euratom, EC) No 
No 2988/952, 5(Euratom, EC) No 
2185/963 and (EU) 2017/19394, the 
2185/963 and (EU) 2017/19394, the 
2185/963 6and (EU) 2017/193947, the 
financial interests of the Union are to  financial interests of the Union are to  financial interests of the Union are to 
be protected by means of 
be protected by means of 
be protected by means of 
proportionate measures, including 
proportionate measures, including 
proportionate measures, including 
measures relating to the prevention, 
measures relating to the prevention, 
measures relating to the prevention, 
detection, correction and 
detection, correction and 
detection, correction and 
investigation of irregularities, 
investigation of irregularities, 
investigation of irregularities, 
including fraud, to the recovery of 
including fraud, to the recovery of 
including fraud, to the recovery of 
funds lost, wrongly paid or 
funds lost, wrongly paid or 
funds lost, wrongly paid or 
 
26 
 
incorrectly used, and, where 
incorrectly used, and, where 
incorrectly used, and, where 
appropriate, to the imposition of 
appropriate, to the imposition of 
appropriate, to the imposition of 
administrative penalties. In 
administrative penalties. In 
administrative penalties. In 
particular, in accordance with 
particular, in accordance with 
particular, in accordance with 
Regulations (Euratom, EC) No 
Regulations (Euratom, EC) No 
Regulations (Euratom, EC) No 
2185/96 and (EU, Euratom) No 
2185/96 and (EU, Euratom) No 
2185/96 and (EU, Euratom) No 
883/2013, the European Anti-Fraud 
883/2013, the European Anti-Fraud 
883/2013, the European Anti-Fraud 
Office (OLAF) has the power to 
Office (OLAF) has the power to 
Office (OLAF) has the power to 
carry out administrative 
carry out administrative 
carry out   administrative 
investigations, including on-the-spot  investigations, including on-the-spot  investigations, including on-the-spot 
checks and inspections, with a view 
checks and inspections, with a view 
checks and inspections, with a view 
to establishing whether there has 
to establishing whether there has 
to establishing whether there has  
been fraud, corruption or any other 
been fraud, corruption or any other 
been fraud, corruption or any other 
illegal activity affecting the financial  illegal activity affecting the financial  illegal activity affecting the financial 
interests of the Union. The European  interests of the Union. The European  interests of the Union. The European 
Public Prosecutor’s Office (EPPO) is  Public Prosecutor’s Office (EPPO) is  Public Prosecutor’s Office (EPPO) is 
empowered, in accordance with 
empowered, in accordance with 
empowered, in accordance with 
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on establishing the Act in Support of Ammunition Production   2023/0140(COD)   22‐06‐2023 at 18h43    14/112 

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Commission Proposal 
EP Mandate 
Council Mandate 
Draft Agreement 
 
Regulation (EU) 2017/1939, to 
Regulation (EU) 2017/1939, to 
Regulation (EU) 2017/1939, to 
investigate and prosecute criminal 
investigate and prosecute criminal 
investigate and prosecute criminal 
offences affecting the financial 
offences affecting the financial 
offences affecting the  
interests of the Union as provided 
interests of the Union as provided 
financial interests of the Union as 
for in Directive (EU) 2017/1371 of 
for in Directive (EU) 2017/1371 of 
provided for in Directive (EU) 
the European Parliament and of the 
the European Parliament and of the 
2017/1371 of the European 
Council5. In accordance with 
Council5. In accordance with 
Parliament and of the Council58. In 
Regulation (EU, Euratom) 
Regulation (EU, Euratom) 
accordance with Regulation (EU, 
2018/1046, any person or entity 
2018/1046, any person or entity 
Euratom) 2018/1046, any person or 
receiving Union funds is to fully 
receiving Union funds is to fully 
entity receiving Union funds is to 
cooperate in the protection of the 
cooperate in the protection of the 
fully cooperate in the protection of 
financial interests of the Union, 
financial interests of the Union, 
the financial interests of the Union, 
grant the necessary rights and access  grant the necessary rights and access  grant the necessary rights and access 
to the Commission, OLAF, the 
to the Commission, OLAF, the 
to the Commission, OLAF, the 
Court of Auditors and, in respect of 
Court of Auditors and, in respect of 
Court of Auditors and, in respect of 
those Member States participating in  those Member States participating in  those Member States participating in 
enhanced cooperation pursuant to 
enhanced cooperation pursuant to 
enhanced cooperation pursuant to 
Regulation (EU) 2017/1939, the 
Regulation (EU) 2017/1939, the 
Regulation (EU) 2017/1939, the 
EPPO, and ensure that any third 
EPPO, and ensure that any third 
EPPO, and ensure that any third 
parties involved in the 
parties involved in the 
parties involved in the 
implementation of Union funds grant  implementation of Union funds grant  implementation of Union funds grant 
equivalent rights. 
equivalent rights. 
equivalent rights. 
_________ 
_________ 
_________ 
1. Regulation (EU, Euratom) No 883/2013 of  1. Regulation (EU, Euratom) No 883/2013 of  1. 4. Regulation (EU, Euratom) No 883/2013 
the European Parliament and of the Council 
the European Parliament and of the Council 
of the European Parliament and of the 
of 11 September 2013 concerning 
of 11 September 2013 concerning 
Council of 11 September 2013 concerning 
investigations conducted by the European 
investigations conducted by the European 
investigations conducted by the European 
Anti-Fraud Office (OLAF) and repealing 
Anti-Fraud Office (OLAF) and repealing   
Anti-Fraud Office (OLAF) and repealing 
Regulation (EC) No 1073/1999 of the 
Regulation (EC) No 1073/1999 of the 
Regulation (EC)No 1073/1999 of the 
European Parliament and of the Council and 
European Parliament and of the Council and 
European Parliament and of the Council and 
Council Regulation (Euratom) No 1074/1999  Council Regulation (Euratom) No 1074/1999  Council Regulation (Euratom) No 1074/1999 
(OJ L 248, 18.9.2013, p. 1). 
(OJ L 248, 18.9.2013, p. 1). 
(OJ L 248, 18.9.2013 
2. Council Regulation (EC, Euratom) No 
2. Council Regulation (EC, Euratom) No 
2.5 Council Regulation (EC, Euratom) No 
2988/95 of 18 December 1995 on the 
2988/95 of 18 December 1995 on the 
2988/95 of 18 December 1995 on the 
protection of the European Communities 
protection of the European   
protection of the European Communities 
financial interests (OJ L 312, 23.12.1995, p. 
Communities financial interests (OJ L 312, 
financial interests (OJ L 312, 23.12.1995, p. 
1). 
23.12.1995, p. 1). 
1). 
3. Council Regulation (Euratom, EC) No 
3. Council Regulation (Euratom, EC) No 
3. 6. Council Regulation (Euratom, EC) No 
2185/96 of 11 November 1996 concerning 
2185/96 of 11 November 1996 concerning 
2185/96 of 11 November 1996 concerning 
on-the-spot checks and inspections carried 
on-the-spot checks and   
on-the-spot checks and inspections carried 
out by the Commission in order to protect 
inspections carried out by the Commission in  out by the Commission in order to protect 
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on establishing the Act in Support of Ammunition Production   2023/0140(COD)   22‐06‐2023 at 18h43    15/112 

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Commission Proposal 
EP Mandate 
Council Mandate 
Draft Agreement 
 
the European Communities’ financial 
order to protect the European Communities’ 
the European Communities’ financial 
interests against fraud and other irregularities  financial interests   
interests against fraud and other irregularities 
(OJ L 292, 15.11.1996, p. 2). 
against fraud and other irregularities (OJ L 
(OJ L 292, 15.11.1996, p. 2). 
4. Council Regulation (EU) 2017/1939 of 12 
292, 15.11.1996, p. 2). 
47. Council Regulation (EU) 2017/1939 of 
October 2017 implementing enhanced 
4. Council Regulation (EU) 2017/1939 of 12 
12 October 2017 implementing enhanced 
cooperation on the establishment of the 
October 2017 implementing enhanced 
cooperation on the establishment of the 
European Public Prosecutor’s Office (‘the 
cooperation on the   
European Public Prosecutor’s Office (‘the 
EPPO’) (OJ L 283, 31.10.2017, p. 1). 
establishment of the European Public 
EPPO’) (OJ L 283, 31.10.2017, p. 1). 
5. Directive (EU) 2017/1371 of the European  Prosecutor’s Office (‘the EPPO’) (OJ L 283, 
58. Directive (EU) 2017/1371 of the 
Parliament and of the Council of 5 July 2017 
31.10.2017, p. 1). 
European Parliament and of the Council of 5 
on the fight against fraud to the Union’s 
5. Directive (EU) 2017/1371 of the European  July 2017 on the fight against fraud to the 
financial interests by means of criminal law 
Parliament and of the Council of 5 July 2017 
Union’s financial interests by means of 
(OJ L 198, 28.7.2017, p. 29). 
on the fight against   
criminal law (OJ L 198, 28.7.2017, p. 29). 
 
fraud to the Union’s financial interests by 
 
means of criminal law (OJ L 198, 28.7.2017, 
p. 29). 
 
  Recital 18 
 
 
 
 
 
(18)  Members of the European Free  (18)  Members of the European Free  (18)  Members of the European Free   
Trade Association which are 
Trade Association which are 
Trade Association which are 
members of the European Economic  members of the European Economic  members of the European Economic 
Area (EEA) may participate in this 
Area (EEA) may participate in this 
Area (EEA) may participate in this 
Instrument as associated countries in  Instrument as associated countries in  Instrument as associated countries in 
the framework of the cooperation 
the framework of the cooperation 
the framework of the cooperation 
established under the Agreement on 
established under the Agreement on 
established under the Agreement on 
the European Economic Area, which  the European Economic Area, which  the European Economic Area, which 
provides for the implementation of 
provides for the implementation of 
provides for the implementation of 
 
27 
their participation to Union 
their participation to Union 
their participation to Union 
 
programmes on the basis of a 
programmes on the basis of a 
programmes on the basis of a 
decision adopted under that 
decision adopted under that 
decision adopted under that 
Agreement. A specific provision 
Agreement. A specific provision 
Agreement. A specific provision 
should be introduced in this 
should be introduced in this 
should be introduced in this 
Regulation requiring those third 
Regulation requiring those third 
Regulation requiring those third 
countries to grant the necessary 
countries to grant the necessary 
countries to grant the necessary 
rights and access required for the 
rights and access required for the 
rights and access required for the 
authorising officer responsible, 
authorising officer responsible, 
authorising officer responsible, 
OLAF and the Court of Auditors to 
OLAF and the Court of Auditors to 
OLAF and the Court of Auditors to 
comprehensively exercise their 
comprehensively exercise their 
comprehensively exercise their 
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on establishing the Act in Support of Ammunition Production   2023/0140(COD)   22‐06‐2023 at 18h43    16/112 

---

 
 
Commission Proposal 
EP Mandate 
Council Mandate 
Draft Agreement 
 
respective competences. 
respective competences. 
respective competences. 
 
 
 
  Recital 19 
 
 
 
 
 
(19)  Given the specificities of the 
(19)  Given the specificities of the 
(19)  Given the specificities of the 
 
defence industry, where demand 
defence industry, where demand 
defence industry, where demand 
comes almost exclusively from 
comes almost exclusively from 
comes almost exclusively from 
Member States and associated 
Member States and associated 
Member States and associated 
countries, which also control all 
countries, which also control all 
countriesgovernments, which also 
acquisition of defence-related 
acquisition of defence-related 
control all acquisition of defence-
products and technologies, including  products and technologies, including  related products and technologies, 
exports, the functioning of the 
exports, the functioning of the 
including exports, the functioning of 
defence industry sector does not 
defence industry sector does not 
the defence industry sector does not 
follow the conventional rules and 
follow the conventional rules and 
follow the conventional rules and 
business models that govern more 
business models that govern more 
business models that govern more 
traditional markets. Industry 
traditional markets. Industry 
traditional markets.  
therefore does not engage in 
therefore does not engage in 
Industry therefore does not engage 
substantial self-funded industrial 
substantial self-funded industrial 
in substantial self-funded industrial 
investments but only does so as a 
investments but only does so as a 
investments but only does so as a 
consequence of firm orders. While 
consequence of firm orders. While 
consequence of firm orders. While 
 
28 
 
firm orders from Member States are 
firm orders from Member States are 
firm orders from Member 
a precondition for any investment, 
a precondition for any investment, 
Statesgovernments are a 
the Commission can intervene by 
the Commission can intervene by 
precondition for any investment, the 
de-risking industrial investments via  de-risking industrial investments via  Commission can intervene by de-
grants and loans allowing a faster 
grants and loans allowing a faster 
risking industrial investments via 
adaptation to ongoing structural 
adaptation to ongoing structural 
grants and loans allowing a faster 
market change.  In the current 
market change.   In the current 
adaptation to ongoing structural 
emergency context, Union support 
emergency context, Union support 
market change.   In the current 
should cover up to 60% of direct 
should cover up to 60% of direct 
emergency context, Union support 
eligible costs in order to enable 
eligible costs in order to enable 
should cover up to 60% of direct 
beneficiaries to implement actions as  beneficiaries to implement actions as  eligible costs in order to enable 
soon as possible, de-risk their 
soon as possible, de-risk their 
beneficiaries to implement actions as 
investment and therefore speed up 
investment and therefore speed up 
soon as possible, de-risk their 
the availability of relevant defence 
the availability of relevant defence 
investment and therefore speed up 
products. 
products.  
the availability of relevant defence 
 
 
products. 
 
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on establishing the Act in Support of Ammunition Production   2023/0140(COD)   22‐06‐2023 at 18h43    17/112 

---

 
 
Commission Proposal 
EP Mandate 
Council Mandate 
Draft Agreement 
 
  Recital 20 
 
 
 
 
 
(20)  Stakeholders in the defence 
(20)  Stakeholders in the defence 
 
 
industry sector face specific indirect 
industry sector face specific indirect 
deleted 
costs, such as with regard to 
costs, such as with regard to 
 
 
29 
 
security. Therefore, it is appropriate 
security. Therefore, it is appropriate 
to allow a flat rate of 7 % of the total  to allow a flat rate of 7 % of the total 
direct eligible costs of the action. 
direct eligible costs of the action. 
 
 
  Recital 21 
 
 
 
 
 
(21)  The Instrument should provide  (21)  The Instrument should provide  (21)  The Instrument should provide 
 
financial support, via means defined  financial support, via means defined  financial support, via means defined 
by Regulation (EU, Euratom) 
by Regulation (EU, Euratom) 
by Regulation (EU, Euratom) 
2018/1046, to actions contributing to  2018/1046, to actions contributing to  2018/1046, to actions contributing to 
the timely availability and supply of 
the timely availability and supply of 
the timely availability and supply of 
relevant defence products such as 
relevant defence products such as 
relevant defence products such as 
industrial coordination and 
industrial coordination and 
industrial coordination and 
networking activities, access to 
networking activities, access to 
networking activities, access to 
finance for undertakings involved in  finance for undertakings involved in  finance for undertakings involved in 
 
30 
the manufacturing of relevant 
the manufacturing of relevant 
the manufacturing of relevant 
 
defence products, reservation of 
defence products, reservation of 
defence products, reservation of  
capacities, industrial process of 
capacities, industrial process of 
capacities, industrial process of 
reconditioning of expired products, 
reconditioning of expired products, 
reconditioning of expired products, 
expansion, optimisation, 
expansion, optimisation, 
expansion, optimisation, 
modernisation, upgrading or 
modernisation, upgrading or 
modernisation, upgrading or 
repurposing of existing, or the 
repurposing of existing, or the 
repurposing of existing, or the 
establishment of new, production 
establishment of new, production 
establishment of new, production 
capacities in this field as well as 
capacities in this field as well as 
capacities in this field as well as 
training of personnel. 
training of personnel. 
training of personnel. 
 
 
 
  Recital 22 
 
 
 
 
 
(22)  As the Instrument aims to 
(22)  As the Instrument aims to 
(22)  As the Instrument aims to 
 
 
31 
 
enhance the competitiveness and 
enhance the competitiveness and 
enhance the competitiveness and 
efficiency of the Union’s defence 
efficiency of the Union’s defence 
efficiency of the Union’s defence 
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on establishing the Act in Support of Ammunition Production   2023/0140(COD)   22‐06‐2023 at 18h43    18/112 

---

 
 
Commission Proposal 
EP Mandate 
Council Mandate 
Draft Agreement 
 
industry, only legal entities, whether  industry, only legal entities, whether  industry, only legal entities, whether 
public or privately owned, which are  public or privately owned, which are  public or privately owned, which are 
established and have their executive 
established and have their executive 
established and have their executive 
management structures in the Union 
management structures in the Union 
management structures in the Union 
or in associated countries be eligible  or in associated countries be eligible  or in associated countries should be 
for support. 
for support. 
eligible for support. They should 
 
 
not be subject to control by a non-
associated third country or by a 
non-associated third country 
entity or, alternatively, should 
have been subject to screening 
within the meaning of Regulation 
(EU) 2019/452 and, where 
necessary, mitigation measures, 
taking into account the objectives 
referred to in Article 4. A legal 
entity which is established in a 
non-associated third country or a 
legal entity which is established in 
the Union or in an associated 
country, but which has its 
executive management structures 
in a non-associated third country 
should not be eligible to be a 
recipient involved in an action. 
 
  Recital 23 
 
 
 
 
 
(23)  Legal entities established in the  (23)  Legal entities established in the  (23)  Legal entities established in the   
Union or in an associated country 
Union or in an associated country 
Union or in an associated country 
that are controlled by a non-
that are controlled by a non-
that are controlled by a non-
associated third country or a non-
associated third country or a non-
associated third country or a non-
 
32 
 
associated third-country entity 
associated third-country entity 
associated third-country entity and 
should only be eligible to be 
should only be eligible to be 
that have not been subject to a 
recipients provided that strict 
recipients provided that strict 
screening within the meaning of 
conditions relating to the security 
conditions relating to the security 
Regulation (EU) 2019/452 and, 
and defence interests of the Union 
and defence interests of the Union 
where necessary, mitigation 
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on establishing the Act in Support of Ammunition Production   2023/0140(COD)   22‐06‐2023 at 18h43    19/112 

---

 
 
Commission Proposal 
EP Mandate 
Council Mandate 
Draft Agreement 
 
and its Member States, as 
and its Member States, as 
measures, should only be eligible to 
established in the framework of the 
established in the framework of the 
be recipients provided that strict 
Common Foreign and Security 
Common Foreign and Security 
conditions relating to the security 
Policy pursuant to Title V of the 
Policy pursuant to Title V of the 
and defence interests of the Union 
Treaty on European Union (TEU), 
Treaty on European Union (TEU), 
and its Member States, as 
including in terms of strengthening 
including in terms of strengthening 
established in the framework of the 
the EDTIB, are fulfilled. The 
the EDTIB, are fulfilled. The 
Common Foreign and Security 
participation of such legal entities 
participation of such legal entities 
Policy pursuant to Title V of the 
should not contravene the objectives  should not contravene the objectives  Treaty on European Union (TEU), 
of the Instrument. In that context, 
of the Instrument. In that context, 
including in terms of strengthening 
control should be understood to be 
control should be understood to be 
the EDTIB, are fulfilled. The 
the ability to exercise a decisive 
the ability to exercise a decisive 
participation of such legal entities 
influence on a legal entity directly, 
influence on a legal entity directly, 
should not contravene the  
or indirectly through one or more 
or indirectly through one or more 
objectives of the Instrument. In that 
intermediate legal entities. 
intermediate legal entities. 
context, control should be 
Applicants should provide all 
Applicants should provide all 
understood to be the ability to 
relevant information about the 
relevant information about the 
exercise a decisive influence on a 
infrastructure, facilities, assets, and 
infrastructure, facilities, assets, and 
legal entity directly, or indirectly 
resources to be used in the action. 
resources to be used in the action. 
through one or more intermediate 
Member States’ concerns regarding 
Member States’ concerns regarding 
legal entities. Applicants should 
security of supply should also be 
security of supply should also be 
provide all relevant information 
taken into account in that respect. In  taken into account in that respect. In  about the infrastructure, facilities, 
view of the urgency of the situation 
view of the urgency of the situation 
assets, and resources to be used in 
stemming from the existing 
stemming from the existing 
the action. Member States’ concerns 
ammunition supply crisis, the 
ammunition supply crisis, the 
regarding security of supply should 
Instrument should take into account 
Instrument should take into account 
also be taken into account in that 
existing supply chains. 
existing supply chains. 
respect. In view of the urgency of 
 
 
the situation stemming from the 
existing ammunition supply crisis, 
the Instrument should take into 
account existing supply chains. 
 
  Recital 24 
 
 
 
 
 
(24)  Infrastructure, facilities, assets,  (24)  Infrastructure, facilities, assets,  (24)  Infrastructure, facilities, assets,   
 
33 
 
and resources of the recipients 
and resources of the recipients 
and resources of the recipients 
involved in an action supported by 
involved in an action supported by 
involved in an action supported by 
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on establishing the Act in Support of Ammunition Production   2023/0140(COD)   22‐06‐2023 at 18h43    20/112 

---

 
 
Commission Proposal 
EP Mandate 
Council Mandate 
Draft Agreement 
 
the Instrument should be located on 
the Instrument should be located on 
the Instrument should be located on 
the territory of a Member State or of  the territory of a Member State or of  the territory of a Member State or of 
an associated country for the entire 
an associated country for the entire 
an associated country for the entire 
duration of the action, and the 
duration of the action, and the 
duration of the action, and the 
recipients involved in an action 
recipients involved in an action 
recipients involved in an action 
should have their executive 
should have their executive 
should have their executive 
management structures in the Union 
management structures in the Union 
management structures in the Union 
or in an associated country. 
or in an associated country. 
or in an associated country. 
Accordingly, a legal entity which is 
Accordingly, a legal entity which is 
Accordingly, a legal entity which is 
established in a non-associated third 
established in a non-associated third 
established in a non-associated third 
country or a legal entity which is 
country or a legal entity which is 
country or a legal entity which is 
established in the Union or in an 
established in the Union or in an 
established in the Union or in an 
associated country, but which has its  associated country, but which has its  associated country, but which has its 
executive management structures in 
executive management structures in 
executive management structures in 
a non-associated third country 
a non-associated third country 
a non-associated third country 
should not be eligible to be a 
should not be eligible to be a 
should not be eligible to be a 
recipient involved in an action 
recipient involved in an action 
recipient involved in an action 
 
 
 
  Recital 24a 
 
 
 
(24a) The Instrument should not 
financially support the ramp-up of 
production capacities for relevant 
defence products that are subject 
 
33a 
 
 
 
to a restriction by a non-associated 
third country or a non-associated 
third country entity that limits 
Member States’ ability to use it. 
 
  Recital 25 
 
 
 
 
 
(25)  Pursuant to Article 94 of 
(25)  Pursuant to Article 94 of 
(25)  Pursuant to Article 94 of 
 
Council Decision 2013/755/EU1, 
Council Decision 2013/755/EU1, 
Council Decision 2013/755/EU19, 
 
34 
 
persons and entities established in 
persons and entities established in 
persons and entities established in 
overseas countries and territories 
overseas countries and territories 
overseas countries and territories 
(OCTs) are eligible for funding 
(OCTs) are eligible for funding 
(OCTs) are eligible for funding 
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on establishing the Act in Support of Ammunition Production   2023/0140(COD)   22‐06‐2023 at 18h43    21/112 

---

 
 
Commission Proposal 
EP Mandate 
Council Mandate 
Draft Agreement 
 
subject to the rules and objectives of  subject to the rules and objectives of  subject to the rules and objectives of 
the Instrument and possible 
the Instrument and possible 
the Instrument and possible 
arrangements applicable to the 
arrangements applicable to the 
arrangements applicable to the 
Member State to which the relevant 
Member State to which the relevant 
Member State to which the relevant 
overseas country or territory is 
overseas country or territory is 
overseas country or territory is 
linked. 
linked. 
linked. 
_________ 
_________ 
_________ 
1. Council Decision 2013/755/EU of 25 
1. Council Decision 2013/755/EU of 25 
1. 9. Council Decision 2013/755/EU of 25 
November 2013 on the association of the 
November 2013 on the association of the 
November 2013 on the association of the 
overseas countries and territories with the 
overseas countries and territories with the 
overseas countries and 
European Union (Overseas Association 
European Union (Overseas Association 
territories with the European Union 
Decision) (OJ L 344, 19.12.2013, p. 1). 
Decision) (OJ L 344, 19.12.2013, p. 1). 
(Overseas Association Decision) (OJ L 344, 
 
 
19.12.2013, p. 1). 
 
  Recital 26 
 
 
 
 
 
(26)  When assessing proposals, the 
(26)  When assessing proposals, the 
(26)  When assessing proposals, the 
 
Commission should pay particular 
Commission should pay particular 
Commission should pay particular 
attention to their contribution to the 
attention to their contribution to the 
attention to their contribution to the 
objectives of the Instrument. The 
objectives of the Instrument. The 
objectives of the Instrument. The 
proposal should notably be assessed 
proposal should notably be assessed 
proposal should notably be assessed 
against their contribution to the 
against their contribution to the 
against their contribution to the 
increase, ramp-up, reservation, 
increase, ramp-up, reservation, 
increase, ramp-up, reservation, 
modernisation of manufacturing 
modernisation of manufacturing 
modernisation of manufacturing 
capacities, as well as the reskilling 
capacities, as well as the reskilling 
capacities, as well as the reskilling 
and upskilling of the related 
and upskilling of the related 
and upskilling of the related 
 
35 
workforce. They should also be 
workforce. They should also be 
workforce. They should also be 
 
assessed against their contribution to  assessed against their contribution to  assessed against their contribution to 
the reduction of the delivery lead-
the reduction of the delivery lead-
the reduction of the delivery lead-
time of relevant defence products, 
time of relevant defence products, 
time of relevant defence products, 
including through order 
including through order 
including through order 
reprioritization mechanisms, to the 
reprioritization mechanisms, to the 
reprioritization mechanisms, to the 
identification and elimination of 
identification and elimination of 
identification and elimination of 
bottlenecks along their supply chains  bottlenecks along their supply chains  bottlenecks along their supply chains 
as well as to the development of the 
as well as to the development of the 
as well as to the development of the 
resilience of these supply chains 
resilience of these supply chains 
resilience of these supply chains 
through the development and the 
through the development and the 
through the development and the 
operationalisation of cross-border 
operationalisation of cross-border 
operationalisation of cross-border 
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on establishing the Act in Support of Ammunition Production   2023/0140(COD)   22‐06‐2023 at 18h43    22/112 

---

 
 
Commission Proposal 
EP Mandate 
Council Mandate 
Draft Agreement 
 
cooperation of undertakings, in 
cooperation of undertakings, in 
cooperation of undertakings, in 
particular, to a significant extent, 
particular, to a significant extent, 
particular, to a significant extent, 
SMEs and mid-caps operating in the  SMEs and mid-caps operating in the  SMEs and mid-caps operating in the 
concerned supply chains. 
concerned supply chains. 
concerned supply chains. 
 
 
 
  Recital 27 
 
 
 
 
 
(27)  When designing, awarding and  (27)  When designing, awarding and  (27)  When designing, awarding and   
implementing EU financial support, 
implementing EU financial support, 
implementing EU financial support, 
the Commission should pay 
the Commission should pay 
the Commission should pay 
 
36 
particular attention that such 
particular attention that such 
particular attention that such 
 
measures do not adversely affect the  measures do not adversely affect the  measures do not adversely affect the 
conditions of competition in the 
conditions of competition in the 
conditions of competition in the 
Internal Market. 
Internal Market. 
Internal Market. 
 
 
 
  Recital 28 
 
 
 
 
 
(28)  Furthermore, the current crisis 
(28)  Furthermore, the current crisis 
 
 
has not only demonstrated 
has not only demonstrated 
deleted 
deficiencies in the EU defence 
deficiencies in the EU defence 
 
industrial sector, but also posed 
industrial sector, but also posed 
challenges to the functioning of the 
challenges to the functioning of the 
internal market of defence products. 
internal market of defence products. 
Indeed, the current geopolitical 
Indeed, the current geopolitical 
context entails a significant increase 
context entails a significant increase 
of the demand that affects the 
of the demand that affects the 
 
37 
 
functioning of internal market of 
functioning of internal market of 
production and sale of ground-to-
production and sale of ground-to-
ground and artillery ammunition and  ground and artillery ammunition and 
missiles and of their components in 
missiles and of their components in 
the Union. While certain Member 
the Union. While certain Member 
States have taken or are likely to 
States have taken or are likely to 
take measures to preserve their own 
take measures to preserve their own 
stocks as a matter of national 
stocks as a matter of national 
security, others are faced with 
security, others are faced with 
difficulties of access to the goods 
difficulties of access to the goods 
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on establishing the Act in Support of Ammunition Production   2023/0140(COD)   22‐06‐2023 at 18h43    23/112 

---

 
 
Commission Proposal 
EP Mandate 
Council Mandate 
Draft Agreement 
 
needed to manufacture or acquire 
needed to manufacture or acquire 
ground-to-ground and artillery 
ground-to-ground and artillery 
ammunition and missiles. 
ammunition and missiles. 
Sometimes, the difficulty to have 
Sometimes, the difficulty to have 
access to one single raw material or 
access to one single raw material or 
to a specific component hampers the  to a specific component hampers the 
whole productions chains. To ensure  whole productions chains. To ensure 
the functioning of the internal 
the functioning of the internal 
market, it is necessary to adopt 
market, it is necessary to adopt 
certain measures which will ensure, 
certain measures which will ensure, 
in a coordinated way, harmonised 
in a coordinated way, harmonised 
rules for facilitating the security of 
rules for facilitating the security of 
supply of defence products. These 
supply of defence products. These 
rules should include the mapping of 
rules should include the mapping of 
the needs in goods and services in 
the needs in goods and services in 
that internal market, the possibility 
that internal market, the possibility 
to establish priority rated orders at 
to establish priority rated orders at 
the level of the Union when at least 
the level of the Union when at least 
three Member States decide or 
three Member States decide or 
intend of decide to procure 
intend of decide to procure 
commonly defence related products,  commonly defence related products, 
where necessary to pursue an 
where necessary to pursue an 
objective of general interest of 
objective of general interest of 
security of the Union and of its 
security of the Union and of its 
Member States, and an acceleration 
Member States, and an acceleration 
of grant-permitting procedures or 
of grant-permitting procedures or 
facilitation of procurement 
facilitation of procurement 
procedures. These measures should 
procedures. These measures should 
be based on Article 114 TFEU. 
be based on Article 114 TFEU. 
 
 
  Recital 29 
 
 
 
 
 
(29)  In order to take the necessary 
(29)  In order to take the necessary 
 
 
and appropriate measures under this 
and appropriate measures under this 
deleted 
 
38 
 
Regulation, the Commission should,  Regulation, the Commission should,   
on the basis of the cooperative work 
on the basis of the cooperative work 
with the EEAS and the EDA in the 
with the EEAS and the EDA in the 
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on establishing the Act in Support of Ammunition Production   2023/0140(COD)   22‐06‐2023 at 18h43    24/112 

---

 
 
Commission Proposal 
EP Mandate 
Council Mandate 
Draft Agreement 
 
context of the Defence Joint 
context of the Defence Joint 
Procurement Task Force, set up and 
Procurement Task Force, set up and 
maintain a mapping of the 
maintain a mapping of the 
undertakings established in the 
undertakings established in the 
Union that operate along the supply 
Union that operate along the supply 
chains of relevant defence products. 
chains of relevant defence products. 
The mapping should notably include  The mapping should notably include 
the type and specifications of their 
the type and specifications of their 
products, their related production 
products, their related production 
capacity, and their position in the 
capacity, and their position in the 
supply chain of the relevant defence 
supply chain of the relevant defence 
products. The Commission should 
products. The Commission should 
regularly monitor the production 
regularly monitor the production 
capacity and the supply chains of the  capacity and the supply chains of the 
undertakings identified in the 
undertakings identified in the 
mapping, in close cooperation with 
mapping, in close cooperation with 
them. The results of the mapping 
them. The results of the mapping 
and the monitoring should be 
and the monitoring should be 
presented and discussed by the 
presented and discussed by the 
Programme Committee. 
Programme Committee. 
 
 
  Recital 30 
 
 
 
 
 
(30)  On this basis, the Commission 
(30)  On this basis, the Commission 
 
 
should draw up a list, identifying the  should draw up a list, identifying the 
deleted 
relevant defence products, raw 
relevant defence products, raw 
 
materials or components thereof, 
materials or components thereof, 
that are affected by disruptions or 
that are affected by disruptions or 
potential disruptions of the 
potential disruptions of the 
 
39 
functioning of the Single Market and  functioning of the Single Market and 
 
its supply chains leading to 
its supply chains leading to 
significant shortages. The 
significant shortages. The 
Commission should regularly update  Commission should regularly update 
this list of supply-critical defence 
this list of supply-critical defence 
products, to focus only on possible 
products, to focus only on possible 
disruptions or bottlenecks affecting 
disruptions or bottlenecks affecting 
the security of supply of relevant 
the security of supply of relevant 
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on establishing the Act in Support of Ammunition Production   2023/0140(COD)   22‐06‐2023 at 18h43    25/112 

---

 
 
Commission Proposal 
EP Mandate 
Council Mandate 
Draft Agreement 
 
defence products, as well as raw 
defence products, as well as raw 
materials and components thereof. 
materials and components thereof. 
 
 
  Recital 31 
 
 
 
 
 
(31)  The Commission should be 
(31)  The Commission should be 
 
 
able to request to receive necessary 
able to request to receive necessary 
deleted 
information to ensure the timely 
information to ensure the timely 
 
availability of supply-critical 
availability of supply-critical 
defence products from economic 
defence products from economic 
operators, dealing with these 
operators, dealing with these 
products, raw materials or 
products, raw materials or 
components thereof, in agreement 
components thereof, in agreement 
with the Member State in which they  with the Member State in which they 
 
40 
 
are established. Such information 
are established. Such information 
should inform the Commission’s 
should inform the Commission’s 
decision on appropriate measures 
decision on appropriate measures 
under this regulation to address 
under this regulation to address 
possible disruptions or bottlenecks 
possible disruptions or bottlenecks 
affecting the security of supply of 
affecting the security of supply of 
relevant defence products as well as 
relevant defence products as well as 
relevant raw materials and 
relevant raw materials and 
components. 
components. 
 
 
  Recital 32 
 
 
 
 
 
(32)  Such an identification, 
(32)  Such an identification, 
 
 
mapping and continuous monitoring  mapping and continuous monitoring 
deleted 
mechanism should allow a near real 
mechanism should allow a near real 
 
time analysis of the production 
time analysis of the production 
 
41 
capacity in the Union, critical factors  capacity in the Union, critical factors 
 
impacting security of supply of 
impacting security of supply of 
relevant defence products, 
relevant defence products, 
stockpiles’ status. It should also 
stockpiles’ status. It should also 
enable Commission to design 
enable Commission to design 
emergency response measures to 
emergency response measures to 
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on establishing the Act in Support of Ammunition Production   2023/0140(COD)   22‐06‐2023 at 18h43    26/112 

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Commission Proposal 
EP Mandate 
Council Mandate 
Draft Agreement 
 
actual or anticipated shortages. 
actual or anticipated shortages. 
 
 
  Recital 33 
 
 
 
 
 
(33)  Avoiding shortages of relevant  (33)  Avoiding shortages of relevant 
 
 
defence products is essential to 
defence products is essential to 
deleted 
preserve the objective of general 
preserve the objective of general 
 
interest of security of the Union and 
interest of security of the Union and 
its Member States and justifies, 
its Member States and justifies, 
where necessary, proportionate 
where necessary, proportionate 
interferences with fundamental 
interferences with fundamental 
rights of the undertakings providing 
rights of the undertakings providing 
supply-critical defence products, 
supply-critical defence products, 
such as the freedom to conduct a 
such as the freedom to conduct a 
business in accordance with Article 
business in accordance with Article 
16 of the Charter and the right to 
16 of the Charter and the right to 
property in accordance with Article 
property in accordance with Article 
17 of the Charter, in the respect of 
17 of the Charter, in the respect of 
Article 52 of the Charter. Such 
Article 52 of the Charter. Such 
interferences may be justified in 
interferences may be justified in 
 
42 
 
particular where several Member 
particular where several Member 
States have undertaken specific 
States have undertaken specific 
efforts to consolidate demand 
efforts to consolidate demand 
through joint procurement, hence 
through joint procurement, hence 
contributing to the further 
contributing to the further 
integration and smooth functioning 
integration and smooth functioning 
of the Internal Market for relevant 
of the Internal Market for relevant 
defence products. At the request of 
defence products. At the request of 
at least three Member States 
at least three Member States 
cooperating for the procurement of 
cooperating for the procurement of 
relevant defence products or at least 
relevant defence products or at least 
one Member State procuring for the 
one Member State procuring for the 
purpose of transferring the acquired 
purpose of transferring the acquired 
relevant defence products to 
relevant defence products to 
Ukraine, which face severe 
Ukraine, which face severe 
difficulties either in placing or in the  difficulties either in placing or in the 
execution of a contract, the 
execution of a contract, the 
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on establishing the Act in Support of Ammunition Production   2023/0140(COD)   22‐06‐2023 at 18h43    27/112 

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Commission Proposal 
EP Mandate 
Council Mandate 
Draft Agreement 
 
Commission may, with the 
Commission may, with the 
agreement of the Member State 
agreement of the Member State 
establishment, require from 
establishment, require from 
undertakings to accept and prioritise  undertakings to accept and prioritise 
orders of supply-critical relevant 
orders of supply-critical relevant 
products. To preserve the 
products. To preserve the 
fundamental rights of undertaking, 
fundamental rights of undertaking, 
these requests should be made only 
these requests should be made only 
for products which have been 
for products which have been 
identified by the Commission in an 
identified by the Commission in an 
Implementing Decision. In addition,  Implementing Decision. In addition, 
a step-by-step procedure should be 
a step-by-step procedure should be 
established in order to give the 
established in order to give the 
undertakings the possibility to 
undertakings the possibility to 
express their concerns as regards the  express their concerns as regards the 
contemplated action. In particular, 
contemplated action. In particular, 
the Commission should, in 
the Commission should, in 
agreement with the Member State in  agreement with the Member State in 
which it is established, inform the 
which it is established, inform the 
undertakings concerned of its 
undertakings concerned of its 
intention to ask it to accept and rank  intention to ask it to accept and rank 
first a priority rated order and 
first a priority rated order and 
provide it all the elements needed to 
provide it all the elements needed to 
allow it to take an informed decision  allow it to take an informed decision 
on whether it can accept that request.  on whether it can accept that request. 
Where the undertaking refuses, the 
Where the undertaking refuses, the 
Commission can, in agreement with 
Commission can, in agreement with 
the Member State concerned, and 
the Member State concerned, and 
having due regard to the nature of 
having due regard to the nature of 
the objections raised by the 
the objections raised by the 
undertaking, consider that security 
undertaking, consider that security 
reasons justify imposing, by an 
reasons justify imposing, by an 
Implementing Decision, a priority 
Implementing Decision, a priority 
rated order. Such a decision should 
rated order. Such a decision should 
be taken in accordance with all 
be taken in accordance with all 
applicable Union legal obligations, 
applicable Union legal obligations, 
having regard to the circumstances 
having regard to the circumstances 
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on establishing the Act in Support of Ammunition Production   2023/0140(COD)   22‐06‐2023 at 18h43    28/112 

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Commission Proposal 
EP Mandate 
Council Mandate 
Draft Agreement 
 
of the case. The priority rated order 
of the case. The priority rated order 
should be placed at a fair and 
should be placed at a fair and 
reasonable price. The priority rated 
reasonable price. The priority rated 
order should take precedence over 
order should take precedence over 
any performance obligation under 
any performance obligation under 
private or public law while it should 
private or public law while it should 
have regard for the legitimate aims 
have regard for the legitimate aims 
of the undertakings and the cost and 
of the undertakings and the cost and 
effort required for any change in 
effort required for any change in 
production sequence. Undertakings 
production sequence. Undertakings 
may be subject to penalties if they 
may be subject to penalties if they 
fail to comply with the obligation for  fail to comply with the obligation for 
priority rated orders. 
priority rated orders. 
 
 
  Recital 34 
 
 
 
 
 
(34)  To preserve the fundamental 
(34)  To preserve the fundamental 
 
 
rights of the undertakings, they 
rights of the undertakings, they 
deleted 
should be given the right to ask to be  should be given the right to ask to be   
released from their obligations in 
released from their obligations in 
situations where the priority rated 
situations where the priority rated 
order is not possible to execute, even  order is not possible to execute, even 
 
43 
 
if prioritised, be it due to insufficient  if prioritised, be it due to insufficient 
production capability or production 
production capability or production 
capacity, or because this would place  capacity, or because this would place 
an unreasonable economic burden 
an unreasonable economic burden 
and entail particular hardship on the 
and entail particular hardship on the 
undertaking. 
undertaking. 
 
 
  Recital 35 
 
 
 
 
 
(35)  Under the exceptional 
(35)  Under the exceptional 
 
 
circumstance that an undertaking 
circumstance that an undertaking 
deleted 
 
44 
 
operating along the supply chain of 
operating along the supply chain of 
 
relevant defence products in the 
relevant defence products in the 
Union receives a priority rated order  Union receives a priority rated order 
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on establishing the Act in Support of Ammunition Production   2023/0140(COD)   22‐06‐2023 at 18h43    29/112 

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Commission Proposal 
EP Mandate 
Council Mandate 
Draft Agreement 
 
request from a third country, it 
request from a third country, it 
should inform the Commission of 
should inform the Commission of 
this request. 
this request. 
 
 
  Recital 36 
 
 
 
 
 
(36)  In light of the importance to 
(36)  In light of the importance to 
 
 
ensure the security of supply to 
ensure the security of supply to 
deleted 
specific defence sectors that perform  specific defence sectors that perform   
vital functions for the security of 
vital functions for the security of 
Union citizens, compliance with the 
Union citizens, compliance with the 
obligation to perform a priority rated  obligation to perform a priority rated 
order should not entail liability for 
order should not entail liability for 
damages towards third parties for 
damages towards third parties for 
any breach of contractual obligations  any breach of contractual obligations 
that may result from the necessary 
that may result from the necessary 
temporary changes of the operational  temporary changes of the operational 
processes of the concerned 
processes of the concerned 
manufacturer, limited to the extent 
manufacturer, limited to the extent 
the violation of contractual 
the violation of contractual 
 
45 
obligations was necessary for 
obligations was necessary for 
 
compliance with the mandated 
compliance with the mandated 
prioritisation. Undertakings 
prioritisation. Undertakings 
potentially within scope of a priority  potentially within scope of a priority 
rated order should anticipate this 
rated order should anticipate this 
possibility in the conditions of their 
possibility in the conditions of their 
commercial contracts. Without 
commercial contracts. Without 
prejudice to the applicability of other  prejudice to the applicability of other 
provisions, the liability for defective  provisions, the liability for defective 
products, as provided for by Council  products, as provided for by Council 
Directive 85/374/EEC1, should not 
Directive 85/374/EEC1, should not 
be affected by this liability 
be affected by this liability 
exemption. 
exemption.  
_________ 
_________ 
1. Council Directive 85/374/EEC of 25 July 
1. Council Directive 85/374/EEC of 25 July 
1985 on the approximation of the laws, 
1985 on the approximation of the laws, 
regulations and administrative provisions of 
regulations and   
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on establishing the Act in Support of Ammunition Production   2023/0140(COD)   22‐06‐2023 at 18h43    30/112 

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Commission Proposal 
EP Mandate 
Council Mandate 
Draft Agreement 
 
the Member States concerning liability for 
administrative provisions of the Member 
defective products (OJ L 210, 7.8.1985, p. 
States concerning liability for defective 
29). 
products (OJ L 210, 7.8.1985, p. 29). 
 
 
  Recital 37 
 
 
 
 
 
(37)  The obligation to prioritise the 
(37)  The obligation to prioritise the 
 
 
production of certain products 
production of certain products 
deleted 
should not disproportionately affect 
should not disproportionately affect 
 
the freedom to conduct a business 
the freedom to conduct a business 
and the freedom of contract laid 
and the freedom of contract laid 
down in Article 16 of the Charter of 
down in Article 16 of the Charter of 
Fundamental Rights of the European  Fundamental Rights of the European 
Union (‘the Charter’) and the right to  Union (‘the Charter’) and the right to 
 
46 
 
property laid down in Article 17 of 
property laid down in Article 17 of 
the Charter. Any limitation of those 
the Charter. Any limitation of those 
rights should, in accordance with 
rights should, in accordance with 
Article 52(1) of the Charter, be 
Article 52(1) of the Charter, be 
provided for by law, respect the 
provided for by law, respect the 
essence of those rights and 
essence of those rights and 
freedoms, and comply with the 
freedoms, and comply with the 
principle of proportionality. 
principle of proportionality. 
 
 
  Recital 38 
 
 
 
 
 
(38)  In light of the importance to 
(38)  In light of the importance to 
(38)  In light of the importance to 
 
ensure the security of supply of 
ensure the security of supply of 
ensure the security of supply of 
relevant defence products, Member 
relevant defence products, Member 
relevant defence products, Member 
States should ensure that 
States should ensure that 
States should ensure that 
administrative applications related to  administrative applications related to  administrative applications related to 
 
47 
 
the planning, construction and 
the planning, construction and 
the planning, construction and 
operation of production facilities, 
operation of production facilities, 
operation of production facilities, 
intra-EU transfer of inputs as well as  intra-EU transfer of inputs as well as  intra-EU transfer of inputs as well as 
qualification and certification of 
qualification and certification of 
qualification and certification of 
relevant end products are processed 
relevant end products are processed 
relevant end products are processed 
in an efficient and timely manner. 
in an efficient and timely manner.  
in an efficient and timely manner. 
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on establishing the Act in Support of Ammunition Production   2023/0140(COD)   22‐06‐2023 at 18h43    31/112 

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Commission Proposal 
EP Mandate 
Council Mandate 
Draft Agreement 
 
 
 
 
  Recital 39 
 
 
 
 
 
(39)  To pursue the general public 
(39)  To pursue the general public 
(39)  To pursue the general public 
 
policy objective of security, it is 
policy objective of security, it is 
policy objective of security, it is 
necessary that production facilities 
necessary that production facilities 
necessary that production facilities 
related to the production of relevant 
related to the production of relevant 
related to the production of relevant 
defence products are set-up as 
defence products are set-up as 
defence products are set-up as 
quickly as possible, while keeping 
quickly as possible, while keeping 
quickly as possible, while keeping 
the administrative burden to a 
the administrative burden to a 
the administrative burden to a 
minimum. For that reason, Member 
minimum. For that reason, Member 
minimum. For that reason, Member 
 
48 
States should treat applications 
States should treat applications 
States should treat applications 
 
related to the planning, construction 
related to the planning, construction 
related to the planning, construction 
and operation of plants and 
and operation of plants and 
and operation of plants and 
installations for the production of 
installations for the production of 
installations for the production of 
relevant defence products in the 
relevant defence products in the 
relevant defence products in the 
most rapid manner possible. They 
most rapid manner possible. They 
most rapid manner  
should be given priority when 
should be given priority when 
possible. They should be given 
balancing legal interests in the 
balancing legal interests in the 
priority when balancing legal 
individual case. 
individual case. 
interests in the individual case. 
 
 
 
  Recital 40 
 
 
 
 
 
(40)  In view of the objective of this 
(40)  In view of the objective of this 
(40)  In view of the objective of this 
 
Regulation, and of the emergency 
Regulation, and of the emergency 
Regulation, and of the emergency 
situation and exceptional context of 
situation and exceptional context of 
situation and exceptional context of 
its adoption, Member States should 
its adoption, Member States should 
its adoption, Member States should 
consider using defence related 
consider using defence related 
consider using defence related 
exemptions under national and 
exemptions under national and 
exemptions under national and 
 
49 
 
applicable Union law, on a case-by-
applicable Union law, on a case-by-
applicable Union law, on a case-by-
case basis, if they deem that such 
case basis, if they deem that such 
case basis, if they deem that such 
application would have an adverse 
application would have an adverse 
application would have an adverse 
effect on those purposes. This may 
effect on those purposes. This may 
effect on those purposes. This may 
in particular apply to Union law 
in particular apply to Union law 
in particular apply to Union law 
concerning environmental, health 
concerning environmental, health 
concerning environmental, health 
and safety issues,1 which is 
and safety issues,1 which is 
and safety issues,110 which is 
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on establishing the Act in Support of Ammunition Production   2023/0140(COD)   22‐06‐2023 at 18h43    32/112 

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Commission Proposal 
EP Mandate 
Council Mandate 
Draft Agreement 
 
indispensable to improve the 
indispensable to improve the 
indispensable to improve the 
protection of human health and 
protection of human health and 
protection of human health and 
environment, as well as achieve a 
environment, as well as achieve a 
environment, as well as achieve a 
sustainable and safe development. 
sustainable and safe development. 
sustainable and safe development. 
However, their implementation may 
However, their implementation may 
However, their implementation may 
also produce regulatory barriers 
also produce regulatory barriers 
also produce regulatory barriers 
hampering the Union defence 
hampering the Union defence 
hampering the Union defence 
industry’s potential to ramp up the 
industry’s potential to ramp up the 
industry’s potential to ramp up the 
production and deliveries of relevant  production and deliveries of relevant  production and deliveries of relevant 
defence products. It is a collective 
defence products. It is a collective 
defence products. It is a collective 
responsibility for the European 
responsibility for the European 
responsibility for the European 
Union and its Member States to 
Union and its Member States to 
Union and its Member States to 
urgently look into any action it may 
urgently look into any action it may 
urgently look into any action it may 
take to mitigate possible obstacles. 
take to mitigate possible obstacles. 
take to mitigate possible obstacles. 
Any such actions, whether at Union,  Any such actions, whether at Union,  Any such actions, whether at Union, 
regional, or national level, should 
regional, or national level, should 
regional, or national level, should 
not compromise environmental, 
not compromise environmental, 
not compromise environmental, 
health and safety concerns. 
health and safety concerns. 
health and safety concerns. 
_________ 
_________ 
_________ 
1. For instance, the REACH, CLP regulation,  1. For instance, the REACH, CLP regulation,  1. 10. For instance, the REACH, CLP 
the Seveso Directive, RoHS Directive, POPs 
the Seveso Directive, RoHS Directive, POPs 
regulation, the Seveso Directive, RoHS 
Regulation, BPR, Ozone regulation and the 
Regulation,   
Directive, POPs Regulation, BPR, Ozone 
F-gas regulation. 
BPR, Ozone regulation and the F-gas 
regulation and the F-gas regulation. 
 
regulation. 
 
 
  Recital 41 
 
 
 
 
 
(41)  In order to optimize the use of 
(41)  In order to optimize the use of 
(41)  In order to optimize the use of 
 
existing supply chains, hence 
existing supply chains, hence 
existing supply chains, hence 
ensuring the continuity of production  ensuring the continuity of production  ensuring the continuity of production 
of relevant defence products, 
of relevant defence products, 
of relevant defence products, 
 
50 
Member States should consider the 
Member States should consider the 
Member States should consider the 
 
possibility to recourse or to 
possibility to recourse or to 
possibility to recourse or to 
encourage concerned companies to 
encourage concerned companies to 
encourage concerned companies to 
recourse to derogations provided for  recourse to derogations provided for  recourse to derogations provided for 
by Directive 2003/88/EC of the 
by Directive 2003/88/EC of the 
by Directive 2003/88/EC of the 
European Parliament and of the 
European Parliament and of the 
European Parliament and of the 
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on establishing the Act in Support of Ammunition Production   2023/0140(COD)   22‐06‐2023 at 18h43    33/112 

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Commission Proposal 
EP Mandate 
Council Mandate 
Draft Agreement 
 
Council1. Where a prior 
Council1. Where a prior 
Council111. Where a prior  
authorization from national 
authorization from national 
authorization from national 
authorities is required to use such 
authorities is required to use such 
authorities is required to use such 
derogations, applications should be 
derogations, applications should be 
derogations, applications should be 
processed in an efficient and timely 
processed in an efficient and timely 
processed in an efficient and timely 
manner. 
manner. 
manner. 
_________ 
_________ 
_________ 
1. Directive 2003/88/EC of the European 
1. Directive 2003/88/EC of the European 
1. 11. Directive 2003/88/EC of the European 
Parliament and of the Council of 4 
Parliament and of the Council of 4 
Parliament and of the Council of 4 
November 2003 concerning certain aspects 
November 2003 concerning   
November 2003 concerning certain 
of the organisation of working time (OJ L 
certain aspects of the organisation of 
aspects of the organisation of working time 
299, 18.11.2003, p. 9). 
working time (OJ L 299, 18.11.2003, p. 9). 
(OJ L 299, 18.11.2003, p. 9). 
 
 
 
  Recital 42 
 
 
 
 
 
(42)  Directive 2009/81/EC of the 
(42)  Directive 2009/81/EC of the 
(42)  Directive 2009/81/EC of the 
 
European Parliament and of the 
European Parliament and of the 
European Parliament and of the 
Council1 aims at harmonising 
Council1 aims at harmonising 
Council112 aims at harmonising 
procurement procedures for the 
procurement procedures for the 
procurement procedures for the 
award of public contracts in the field  award of public contracts in the field  award of public contracts in the field 
of defence and security which 
of defence and security which 
of defence and security which 
enables to meet the security 
enables to meet the security 
enables to meet the security 
requirements of Member States and 
requirements of Member States and 
requirements of Member States and 
the obligations arising from the 
the obligations arising from the 
the obligations arising from the 
Treaty. That Directive notably 
Treaty. That Directive notably 
Treaty. That Directive notably 
 
51 
provides for specific provisions 
provides for specific provisions 
provides for specific provisions 
 
ruling situations of urgency resulting  ruling situations of urgency resulting  ruling situations of urgency resulting 
from a crisis, notably shortened 
from a crisis, notably shortened 
from a crisis, notably shortened 
periods for the receipt of tenders and  periods for the receipt of tenders and  periods for the receipt of tenders and 
the possibility to use the negotiated 
the possibility to use the negotiated 
the possibility to use the negotiated 
procedure without prior publication 
procedure without prior publication 
procedure without prior publication 
of a contract notice. However, the 
of a contract notice. However, the 
of a contract notice. However, the 
extreme urgency caused by the 
extreme urgency caused by the 
extreme urgency caused by the 
current ammunition supply crisis 
current ammunition supply crisis 
current ammunition supply  
may be incompatible even with 
may be incompatible even with 
crisis may be incompatible even 
those provisions in cases where 
those provisions in cases where 
with those provisions in cases where 
more than two Member States intend  more than two Member States intend  more than twotwo or more Member 
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on establishing the Act in Support of Ammunition Production   2023/0140(COD)   22‐06‐2023 at 18h43    34/112 

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Commission Proposal 
EP Mandate 
Council Mandate 
Draft Agreement 
 
to engage in a common procurement.  to engage in a common procurement.  States intend to engage in a common 
In some cases, the only solution to 
In some cases, the only solution to 
procurement. In some cases, the only 
ensure the security interests of those  ensure the security interests of those 
solution to ensure the security 
Member States is to open an existing  Member States is to open an existing  interests of those Member States is 
framework agreement to contracting  framework agreement to contracting  to open an existing framework 
authorities/entities of Member States  authorities/entities of Member States  agreement to  
that were not originally party to it, 
that were not originally party to it, 
contracting authorities/entities of 
even though that possibility had not 
even though that possibility had not 
Member States that were not 
been provided for in the initial 
been provided for in the initial 
originally party to it, even though 
framework agreement. 
framework agreement. 
that possibility had not been 
_________ 
_________ 
provided for in the initial framework 
1. Directive 2009/81/EC of the European 
1. Directive 2009/81/EC of the European 
agreement. 
Parliament and of the Council of 13 July 
Parliament and of the Council of 13 July 
_________ 
2009 on the coordination of procedures for 
2009 on the   
1. 12. Directive 2009/81/EC of the European 
the award of certain works contracts, supply 
coordination of procedures for the award of 
Parliament and of the Council of 13 July 
contracts and service contracts by 
certain works contracts, supply contracts and 
2009 on the coordination of procedures for 
contracting authorities or entities in the fields  service   
the award of certain works contracts, supply 
of defence and security, and amending 
contracts by contracting authorities or 
contracts and service contracts by 
Directives 2004/17/EC and 2004/18/EC (OJ 
entities in the fields of defence and security, 
contracting authorities or entities in the fields 
L 216, 20.8.2009, p. 76–136). 
and amending   
of defence and security, and amending 
 
Directives 2004/17/EC and 2004/18/EC (OJ 
Directives 2004/17/EC and 2004/18/EC (OJ 
L 216, 20.8.2009, p. 76–136). 
L 216, 20.8.2009, p. 76–136). 
 
 
  Recital 43 
 
 
 
 
 
(43)  In accordance with the case-
(43)  In accordance with the case-
(43)  In accordance with the case-
 
law of the Court of Justice of the 
law of the Court of Justice of the 
law of the Court of Justice of the 
European Union, modifications to a 
European Union, modifications to a 
European Union,  
contract shall be strictly limited to 
contract shall be strictly limited to 
modifications to a contract shall be 
what is absolutely necessary in the 
what is absolutely necessary in the 
strictly limited to what is absolutely 
circumstances, while complying to 
circumstances, while complying to 
necessary in the circumstances, 
 
52 
 
the maximum extent possible with 
the maximum extent possible with 
while complying to the maximum 
the principles of non-discrimination,  the principles of non-discrimination,  extent possible with the principles of 
transparency and proportionality. In 
transparency and proportionality. In 
non-discrimination,  
this regard, it should be possible to 
this regard, it should be possible to 
transparency and proportionality. In 
derogate from Directive 2009/81/EC  derogate from Directive 2009/81/EC  this regard, it should be possible to  
by increasing the quantities provided  by increasing the quantities provided  derogate from Directive 2009/81/EC 
for in the Framework Agreement 
for in the Framework Agreement 
by increasing the quantities provided 
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on establishing the Act in Support of Ammunition Production   2023/0140(COD)   22‐06‐2023 at 18h43    35/112 

---

 
 
Commission Proposal 
EP Mandate 
Council Mandate 
Draft Agreement 
 
while opening it to contracting 
while opening it to contracting 
for in the  
authorities/entities of other Member 
authorities/entities of other Member 
Framework Agreement while 
States. These contracting 
States. These contracting 
opening it to contracting 
authorities/entities should enjoy the 
authorities/entities should enjoy the 
authorities/entities of other Member 
same conditions as the original 
same conditions as the original 
States. These contracting 
contracting authority that concluded 
contracting authority that concluded 
authorities/entities should enjoy the 
the original framework agreement 
the original framework agreement 
same conditions as the original 
for those additional quantities. In 
for those additional quantities. In 
contracting authority that concluded 
such cases, the contracting authority  such cases, the contracting authority  the original framework agreement 
should also allow any economic 
should also allow any economic 
for those additional  
operator who fulfils the conditions 
operator who fulfils the conditions 
quantities. In such cases, the 
of the original framework agreement  of the original framework agreement  contracting authority should also 
to become a contractor under that 
to become a contractor under that 
allow any economic operator who 
framework agreement. In addition, 
framework agreement. In addition, 
fulfils the contracting authority’s 
appropriate transparency measures 
appropriate transparency measures 
conditions of the originalinitially 
should be taken to ensure that all 
should be taken to ensure that all 
laid down in the procurement 
potentially interested parties may be 
potentially interested parties may be 
procedure for the framework 
informed. In order to limit the 
informed. In order to limit the 
agreement, including requirements 
effects of these modifications on the  effects of these modifications on the  for qualitative selections as 
smooth functioning of the internal 
smooth functioning of the internal 
referred to in articles 39 to 46 of 
market and to prevent 
market and to prevent 
Directive 2009/81/EC to become a 
disproportionate distortions of 
disproportionate distortions of 
contractor under that framework 
competition, modifications of 
competition, modifications of 
agreement. In addition, appropriate  
framework agreements should only 
framework agreements should only 
transparency measures should be 
be concluded until 30 June 2025. 
be concluded until 30 June 2025. 
taken to ensure that all potentially 
 
 
interested parties may be informed. 
In order to limit the effects of these 
modifications on the smooth 
functioning of the internal market 
and to prevent disproportionate 
distortions of competition, 
modifications of framework 
agreements should only be 
concluded until 30 June 2025. 
 
  Recital 44 
 
 
53 
 
 
 
 
 
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on establishing the Act in Support of Ammunition Production   2023/0140(COD)   22‐06‐2023 at 18h43    36/112 

---

 
 
Commission Proposal 
EP Mandate 
Council Mandate 
Draft Agreement 
 
(44)  Directive 2009/43/EC of the 
(44)  Directive 2009/43/EC of the 
 
 
European Parliament and the 
European Parliament and the 
deleted 
Council1 aims at simplifying the 
Council1 aims at simplifying the 
 
terms and conditions of intra-EU 
terms and conditions of intra-EU 
transfers of defence-related products,  transfers of defence-related products, 
notably through General Transfer 
notably through General Transfer 
Licences which rely on ex post 
Licences which rely on ex post 
verification, cover a pre-determined 
verification, cover a pre-determined 
range of products to specified 
range of products to specified 
recipients or for a specific purpose, 
recipients or for a specific purpose, 
and for which no prior request is 
and for which no prior request is 
needed. However, none of the 
needed. However, none of the 
mandatory General Transfer 
mandatory General Transfer 
Licences provided for by Article 4 
Licences provided for by Article 4 
(1) of Directive 2009/43/EC or 
(1) of Directive 2009/43/EC or 
Commission recommendations on 
Commission recommendations on 
the harmonisation of the scope of 
the harmonisation of the scope of 
and conditions for these licences are  and conditions for these licences are 
sufficient to ensure that transfers 
sufficient to ensure that transfers 
necessary for the production of 
necessary for the production of 
relevant defence products. 
relevant defence products. 
_________ 
_________ 
1. Directive 2009/43/EC of the European 
1. Directive 2009/43/EC of the European 
Parliament and of the Council of 6 May 2009  Parliament and of the Council of 6 May 2009 
simplifying terms and conditions of transfers 
simplifying terms and conditions of transfers 
of defence-related products within the 
of defence-related products within the 
Community (OJ L 146, 10.6.2009, p. 1–36). 
Community (OJ L 146, 10.6.2009, p. 1–36). 
 
 
  Recital 45 
 
 
 
 
 
(45)  In the current context which 
(45)  In the current context which 
 
 
imposes to speed up the delivery 
imposes to speed up the delivery 
deleted 
lead times throughout the concerned  lead times throughout the concerned   
 
54 
 
supply and value chains, it appears 
supply and value chains, it appears 
necessary to exempt the transfer of 
necessary to exempt the transfer of 
relevant defence products from the 
relevant defence products from the 
obligation of prior authorisation 
obligation of prior authorisation 
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on establishing the Act in Support of Ammunition Production   2023/0140(COD)   22‐06‐2023 at 18h43    37/112 

---

 
 
Commission Proposal 
EP Mandate 
Council Mandate 
Draft Agreement 
 
within the Union. This exemption 
within the Union. This exemption 
should not affect the discretion of 
should not affect the discretion of 
Member States as regards policy on 
Member States as regards policy on 
the export of defence-related 
the export of defence-related 
products. 
products. 
 
 
  Recital 46 
 
 
 
 
 
(46)  In order to be competitive, 
(46)  In order to be competitive, 
(46)  In order to be competitive, 
 
innovative and resilient, as well as to  innovative and resilient, as well as to  innovative and resilient, as well as to 
be able to ramp up its production 
be able to ramp up its production 
be able to ramp up its  
capacities, the EDTIB needs to 
capacities, the EDTIB needs to 
production capacities, the EDTIB 
access both public and private 
access both public and private 
needs to access both public and 
financing. As provided in the 
financing. As provided in the 
private financing. As  
“Commission contribution to 
“Commission contribution to 
provided in the "Commission 
European defence” of 15 February 
European defence” of 15 February 
contribution to European defence" of 
2022, Union initiatives on 
2022, Union initiatives on 
15 February 2022,  
sustainable finance are consistent 
sustainable finance are consistent 
Union initiatives on sustainable 
with the Union efforts to facilitate 
with the Union efforts to facilitate 
finance are consistent with the 
the European defence industry’s 
the European defence industry’s 
Union efforts to facilitate the 
sufficient access to finance and 
sufficient access to finance and 
European defence industry’s 
investment. In that context, the EU 
investment. In that context, the EU 
sufficient access to finance and 
 
55 
 
sustainable finance framework does 
sustainable finance framework does 
investment. In that context, the EU 
not prevent investment in defence-
not prevent investment in defence-
sustainable finance framework does 
related activities. The Union defence  related activities. The Union defence  not prevent investment in defence-
industry is a crucial contributor to 
industry is a crucial contributor to 
related activities. The Union defence 
the resilience, security of the Union,  the resilience, security of the Union, 
industry is a crucial contributor to 
and therefore to peace and social 
and therefore to peace and social 
the resilience, security of the Union, 
sustainability. Within Union 
sustainability. Within Union 
and therefore to peace and social 
initiatives on sustainable finance 
initiatives on sustainable finance 
sustainability. Within Union 
policies, controversial weapons 
policies, controversial weapons 
initiatives on sustainable  
subject to international conventions 
subject to international conventions 
finance policies, controversial 
prohibiting their development, 
prohibiting their development, 
weapons subject to international 
production, stockpiling, use, 
production, stockpiling, use, 
conventions prohibiting their 
transfer, and delivery, and signed by  transfer, and delivery, and signed by  development, production, 
Union Member States, are deemed 
Union Member States, are deemed 
stockpiling, use, transfer, and 
incompatible with social 
incompatible with social 
delivery, and signed by Unionall 
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on establishing the Act in Support of Ammunition Production   2023/0140(COD)   22‐06‐2023 at 18h43    38/112 

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Commission Proposal 
EP Mandate 
Council Mandate 
Draft Agreement 
 
sustainability. The sector is subject 
sustainability. The sector is subject 
Member States, are deemed 
to close regulatory scrutiny 
to close regulatory scrutiny 
incompatible with social 
implemented by Member States for 
implemented by Member States for 
sustainability. The sector is subject 
the transfer and export of military 
the transfer and export of military 
to close regulatory scrutiny 
and dual-use items. In this 
and dual-use items. In this 
implemented by Member States for 
perspective, a commitment of 
perspective, a commitment of 
the transfer and export of military 
national and European financial 
national and European financial 
and dual-use items. In this 
actors - such as National 
actors - such as National 
perspective, a commitment of 
Promotional Banks and Institutions -  Promotional Banks and Institutions -  national and European financial 
to support the European defence 
to support the European defence 
actors - such as National 
industry, would send a strong signal 
industry, would send a strong signal 
Promotional Banks and Institutions - 
to the private sector. While pursuing  to the private sector. While pursuing  to support the European defence 
in full its other economic 
in full its other economic 
industry, would send a strong signal 
development and public policy 
development and public policy 
to the private  
financing missions, including the 
financing missions, including the 
sector. While pursuing in full its 
twin transition and in line with 
twin transition and in line with 
other economic development and 
article 309 TFEU as well as its 
article 309 TFEU as well as its 
public policy financing missions, 
statute, the European Investment 
statute, the European Investment 
including the twin transition and in 
Bank (EIB) should enhance its 
Bank (EIB) should enhance its 
line with article 309 TFEU as well 
support to the European defence 
support to the European defence 
as its statute, the European 
industry and joint procurement 
industry and joint procurement 
Investment Bank (EIB) should 
beyond its ongoing support to dual 
beyond its ongoing support to dual 
enhance its support to the European 
use, where such investments would 
use, where such investments would 
defence industry and joint 
clearly serve to implement the 
clearly serve to implement the 
procurement beyond its ongoing 
Strategic Compass priorities. 
Strategic Compass priorities. 
support to dual use, where such 
 
 
investments would clearly serve to 
implement the Strategic Compass 
priorities. 
 
  Recital 47 
 
 
 
 
 
(47)  Undertakings in the value chain  (47)  Undertakings in the value chain  (47)  Undertakings in the value chain   
of relevant defence products should 
of relevant defence products should 
of relevant defence products should 
 
56 
have access to debt financing, to 
have access to debt financing, to 
have access to debt  
 
speed-up investments needed to 
speed-up investments needed to 
financing, to speed-up investments 
increase manufacturing capacities. 
increase manufacturing capacities. 
needed to increase manufacturing 
The Instrument should facilitate 
The Instrument should facilitate 
capacities. The  
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on establishing the Act in Support of Ammunition Production   2023/0140(COD)   22‐06‐2023 at 18h43    39/112 

---

 
 
Commission Proposal 
EP Mandate 
Council Mandate 
Draft Agreement 
 
access to finance for Union’s 
access to finance for Union’s 
Instrument should facilitate access to 
companies in the ammunition and 
companies in the ammunition and 
finance for Union’s companies in the 
missile field. The Regulation should  missile field. The Regulation should  ammunition and missile field. The 
notably ensure that those legal 
notably ensure that those legal 
Regulation should notably ensure 
entities are granted the same 
entities are granted the same 
that those legal entities are granted 
conditions offered to other legal 
conditions offered to other legal 
the same conditions offered to other 
entities, taking charge of any 
entities, taking charge of any 
legal entities, taking charge of any 
additional cost arising specifically 
additional cost arising specifically 
additional cost arising  
for the defence sector. 
for the defence sector. 
specifically for the defence sector. 
 
 
 
  Recital 48 
 
 
 
 
 
(48)  The Commission may set-up a 
(48)  The Commission may set-up a 
(48)  The Commission may set-up a 
 
dedicated facility as part of the 
dedicated facility as part of the 
dedicated facility as part of the 
investment facilitation activities 
investment facilitation activities 
investment facilitation  
described collectively as the ‘Ramp-
described collectively as the ‘Ramp-
activities described collectively as 
up fund’. The Ramp-up Fund may 
up fund’. The Ramp-up Fund may 
the ‘Ramp-up fund’. The Ramp-up 
be implemented in direct or indirect 
be implemented in direct or indirect 
Fund mayshould be implemented in 
management. The Commission 
management. The Commission 
direct or indirect management. The 
should explore in that regard the 
should explore in that regard the 
Commission should explore in that 
most appropriate way to leverage 
most appropriate way to leverage 
regard the most appropriate way to 
EU budget to unlock public and 
EU budget to unlock public and 
leverage EU budget to unlock public 
private investment in support of the 
private investment in support of the 
and private investment in support of 
rapid ramp up sought, for instance 
rapid ramp up sought, for instance 
the rapid ramp up sought, for 
 
57 
 
through the possibility of a blending  through the possibility of a blending  instance through the possibility of a 
facility, including under InvestEU 
facility, including under InvestEU 
blending facility, including under 
Fund established by Regulation (EU)  Fund established by Regulation (EU)  InvestEU Fund established by 
2021/523 of the European 
2021/523 of the European 
Regulation (EU) 2021/523 of the 
Parliament and Council1, in close 
Parliament and Council1, in close 
European Parliament and Council113, 
cooperation with its implementing 
cooperation with its implementing 
in close cooperation with its 
partners. The ‘Ramp-up Fund’ 
partners. The ‘Ramp-up Fund’ 
implementing partners. The ‘Ramp-
activities should support the increase  activities should support the increase  up Fund’ activities should support 
of manufacturing capacities in the 
of manufacturing capacities in the 
the increase of manufacturing 
ammunition and missiles area by 
ammunition and missiles area by 
capacities in the ammunition and 
providing opportunities for increased  providing opportunities for increased  missiles area by providing 
availability of funds to companies 
availability of funds to companies 
opportunities for increased 
across the value chain. 
across the value chain. 
availability of funds to companies 
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on establishing the Act in Support of Ammunition Production   2023/0140(COD)   22‐06‐2023 at 18h43    40/112 

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Commission Proposal 
EP Mandate 
Council Mandate 
Draft Agreement 
 
_________ 
_________ 
across the value chain. 
1. Regulation (EU) 2021/523 of the 
1. Regulation (EU) 2021/523 of the 
_________ 
European Parliament and of the Council of 
European Parliament and of the Council of 
1. 13. Regulation (EU) 2021/523 of the 
24 March 2021 establishing the InvestEU 
24 March 2021   
European Parliament and of the Council of 
Programme and amending Regulation (EU) 
establishing the InvestEU Programme and 
24 March 2021 establishing the 
2015/1017 (OJ L 107, 26.3.2021, p. 30–89). 
amending Regulation (EU) 2015/1017 (OJ L 
InvestEU Programme and amending 
 
107, 26.3.2021, p. 30–89). 
Regulation (EU) 2015/1017 (OJ L 107, 
 
26.3.2021, p. 30–89). 
 
  Recital 49 
 
 
 
 
 
(49)  In order to ensure uniform 
(49)  In order to ensure uniform 
(49)  In order to ensure uniform 
 
conditions for the implementation of  conditions for the implementation of  conditions for the implementation of 
this Regulation, implementing 
this Regulation, implementing 
this Regulation, implementing 
powers should be conferred on the 
powers should be conferred on the 
powers should be conferred on the 
Commission as regards the adoption  Commission as regards the adoption  Commission as regards the adoption 
of the Work Programme and of the 
of the Work Programme and of the 
of the Work Programme and of the 
list of supply-critical defence 
list of supply-critical defence 
list of supply-critical defence 
products, for issuing obligations for 
products, for issuing obligations for 
products, for issuing obligations for 
undertakings concerned by a request  undertakings concerned by a request  undertakings concerned by a request 
for a priority rated order to accept or  for a priority rated order to accept or  for a priority rated order to accept or 
perform that order at a fair and 
perform that order at a fair and 
perform that order at a fair and 
reasonable price and for laying down  reasonable price and for laying down  reasonable price and for laying down 
the practical and operational 
the practical and operational 
the practical and operational 
 
58 
 
arrangements for the functioning of 
arrangements for the functioning of 
arrangements for the functioning of 
priority rated orders. Those powers 
priority rated orders. Those powers 
priority rated orders the award of 
should be exercised in accordance 
should be exercised in accordance 
funding to selected actions. Those 
with Regulation (EU) No 182/2011 
with Regulation (EU) No 182/2011 
powers should be exercised in 
of the European Parliament and of 
of the European Parliament and of 
accordance with Regulation (EU) No 
the Council1. The Commission 
the Council1. The Commission 
182/2011 of the European 
should adopt immediately applicable  should adopt immediately applicable  Parliament and  
implementing acts where, in duly 
implementing acts where, in duly 
of the Council114. The Commission 
justified cases relating to the 
justified cases relating to the 
should adopt immediately applicable 
adoption of the list of supply-critical  adoption of the list of supply-critical  implementing acts where, in duly 
defence products, for issuing 
defence products, for issuing 
justified cases relating to the 
obligations for undertakings 
obligations for undertakings 
adoption of the list of supply-critical 
concerned by a request for a priority  concerned by a request for a priority  defence products, for issuing 
rated order to accept or perform that 
rated order to accept or perform that 
obligations for undertakings 
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on establishing the Act in Support of Ammunition Production   2023/0140(COD)   22‐06‐2023 at 18h43    41/112 

---

 
 
Commission Proposal 
EP Mandate 
Council Mandate 
Draft Agreement 
 
order at a fair and reasonable price 
order at a fair and reasonable price 
concerned by a request for a priority 
and for laying down the practical 
and for laying down the practical 
rated order to accept or perform that 
and operational arrangements for the  and operational arrangements for the  order at a fair and reasonable price 
functioning of priority rated orders, 
functioning of priority rated orders, 
and for laying down the practical 
where imperative grounds of 
where imperative grounds of 
and operational arrangements for the 
urgency so require. 
urgency so require. 
functioning of priority rated orders, 
_________ 
_________ 
where imperative grounds of 
1. Regulation (EU) No 182/2011 of the 
1. Regulation (EU) No 182/2011 of the 
urgency so require. 
European Parliament and of the Council of 
European Parliament and of the Council of 
_________ 
16 February 2011 laying down the rules and 
16 February 2011   
1. 14. Regulation (EU) No 182/2011 of the 
general principles concerning mechanisms 
laying down the rules and general principles 
European Parliament and of the Council of 
for control by the Member States of the 
concerning mechanisms for control by the 
16 February 2011 laying down the rules and 
Commission's exercise of implementing 
Member States of the Commission's exercise 
general principles concerning mechanisms 
powers (OJ L 55, 28.2.2011, p. 13). 
of implementing powers (OJ L 55, 
for control by the Member States of the 
 
28.2.2011, p. 13). 
Commission's exercise of implementing 
 
powers (OJ L 55, 28.2.2011, p. 13). 
 
  Recital 50 
 
 
 
 
 
(50)  Since the objective of this 
(50)  Since the objective of this 
(50)  Since the objective of this 
 
Regulation namely, to respond to the  Regulation namely, to respond to the  Regulation namely, to respond to the 
impact of security crisis, cannot be 
impact of security crisis, cannot be 
impact of security crisis, cannot be 
sufficiently achieved by the Member  sufficiently achieved by the Member  sufficiently achieved by the Member 
States but can rather, by reason of 
States but can rather, by reason of 
States but can rather, by reason of 
the scale and effects of the proposed  the scale and effects of the proposed  the scale and effects of the proposed 
action, be better achieved at Union 
action, be better achieved at Union 
action, be better achieved at Union 
level, the Union may adopt 
level, the Union may adopt 
level, the Union may adopt 
 
59 
measures, in accordance with the 
measures, in accordance with the 
measures, in accordance with the 
 
principle of subsidiarity as set out in  principle of subsidiarity as set out in  principle of subsidiarity as set out in 
Article 5 of the Treaty on European 
Article 5 of the Treaty on European 
Article 5 of the Treaty on European 
Union (“TEU”). In accordance with 
Union (“TEU”). In accordance with 
Union ("TEU"). In accordance with 
the principle of proportionality, as 
the principle of proportionality, as 
the principle of proportionality, as 
set out in that Article, this 
set out in that Article, this 
set out in that Article, this 
Regulation does not go beyond what  Regulation does not go beyond what  Regulation does not go beyond what 
is necessary to achieve that 
is necessary to achieve that 
is necessary to achieve that 
objective.s. 
objective.s. 
objective.s. 
 
 
 
  Recital 51 
 
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on establishing the Act in Support of Ammunition Production   2023/0140(COD)   22‐06‐2023 at 18h43    42/112 

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Commission Proposal 
EP Mandate 
Council Mandate 
Draft Agreement 
 
 
 
 
 
(51)  This Regulation should apply 
(51)  This Regulation should apply 
(51)  This Regulation should apply 
 
without prejudice to Union 
without prejudice to Union 
without prejudice to Union 
 
60 
competition rules, in particular 
competition rules, in particular 
competition rules, in particular 
 
Articles 101 to 109 TFEU and their 
Articles 101 to 109 TFEU and their 
Articles 101 to 109 TFEU and their 
implementing regulations. 
implementing regulations. 
implementing regulations. 
 
 
 
  Recital 52 
 
 
 
 
 
(52)  It is to be recalled that 
(52)  It is to be recalled that 
(52)  It is to be recalled that 
 
according to Article 41(2) TEU, 
according to Article 41(2) TEU, 
according to Article 41(2) TEU, 
operating expenditure arising from 
operating expenditure arising from 
operating expenditure arising from 
Chapter 2 of Title V shall be charged  Chapter 2 of Title V shall be charged  Chapter 2 of Title V shall be charged 
 
61 
 
to the Union budget, except for such  to the Union budget, except for such  to the Union budget, except for such 
expenditure arising from operations 
expenditure arising from operations 
expenditure arising from operations 
having military or defence 
having military or defence 
having military or defence 
implications. 
implications. 
implications. 
 
 
 
  Recital 53 
 
 
 
 
 
(53)  In view of the urgency to 
(53)  In view of the urgency to 
(53)  In view of the urgency to 
 
address the security crisis it is 
address the security crisis it is 
address the security crisis it is 
appropriate to provide for an 
appropriate to provide for an 
appropriate to provide for an 
exception to the eight-week period 
exception to the eight-week period 
exception to the eight-week period 
referred to in Article 4 of Protocol 
referred to in Article 4 of Protocol 
referred to in Article 4 of Protocol 
No 1 on the role of national 
No 1 on the role of national 
No 1 on the role of national 
Parliaments in the European Union, 
Parliaments in the European Union, 
Parliaments in the European Union, 
 
62 
annexed to the TEU, to the Treaty on  annexed to the TEU, to the Treaty on  annexed to the TEU, to the Treaty on 
 
the Functioning of the European 
the Functioning of the European 
the Functioning of the European 
Union and to the Treaty establishing  Union and to the Treaty establishing  Union and to the Treaty establishing 
the European Atomic Energy 
the European Atomic Energy 
the European Atomic  
Community. Considering the 
Community. Considering the 
Energy Community. Considering the 
imminent danger for the security of 
imminent danger for the security of 
imminent danger for the security of 
supply brought about by Russia’s 
supply brought about by Russia’s 
supply brought about by Russia’s 
war of aggression against Ukraine, 
war of aggression against Ukraine, 
war of aggression against Ukraine, 
this Regulation should enter into 
this Regulation should enter into 
this Regulation should enter into 
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on establishing the Act in Support of Ammunition Production   2023/0140(COD)   22‐06‐2023 at 18h43    43/112 

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Commission Proposal 
EP Mandate 
Council Mandate 
Draft Agreement 
 
force the day after its publication in 
force the day after its publication in 
force the day after its publication in 
the Official Journal. 
the Official Journal. 
the Official Journal. 
 
 
 
  Recital 54 
 
 
 
 
 
(54)  Pursuant to paragraphs 22 and 
(54)  Pursuant to paragraphs 22 and 
(54)  Pursuant to paragraphs 22 and 
 
23 of the Interinstitutional 
23 of the Interinstitutional 
23 of the Interinstitutional 
Agreement of 13 April 2016 on 
Agreement of 13 April 2016 on 
Agreement of 13 April 2016 on 
Better Law-Making1, the Regulation  Better Law-Making1, the Regulation  Better Law-Making115, the 
should be evaluated on the basis of 
should be evaluated on the basis of 
Regulation should be evaluated on 
information collected in accordance 
information collected in accordance 
the basis of information collected in 
with specific monitoring 
with specific monitoring 
accordance with specific monitoring 
requirements, while avoiding an 
requirements, while avoiding an 
requirements, while avoiding an 
administrative burden, in particular 
administrative burden, in particular 
administrative burden, in particular 
on Member States, and 
on Member States, and 
on Member States, and 
overregulation. Those requirements, 
overregulation. Those requirements, 
overregulation. Those requirements, 
 
63 
where appropriate, should include 
where appropriate, should include 
where appropriate, should include 
 
measurable indicators as a basis for 
measurable indicators as a basis for 
measurable indicators as a basis for 
evaluating the effects of the 
evaluating the effects of the 
evaluating the effects of the 
Regulation on the ground. The 
Regulation on the ground. The 
Regulation on the ground. The 
Commission should carry out an 
Commission should carry out an 
Commission should carry out an 
evaluation no later than 30 June 
evaluation no later than 30 June 
evaluation no later than 30 June 
2024, including with a view to 
2024, including with a view to 
2024, including with a view to 
submitting proposals for any 
submitting proposals for any 
submitting proposals for any 
appropriate amendments to this 
appropriate amendments to this 
appropriate amendments to this 
Regulation. 
Regulation. 
Regulation. 
_________ 
_________ 
_________ 
1. OJ L 123, 12.5.2016, p. 1–14. 
1. OJ L 123, 12.5.2016, p. 1–14. 
1. 15. OJ L 123, 12.5.2016, p. 1–14. 
 
 
 
  Recital 54a 
 
 
 
(54a) This Regulation should 
apply without prejudice to the 
 
63a 
 
 
 
specific character of the security 
and defence policy of certain 
Member States. 
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on establishing the Act in Support of Ammunition Production   2023/0140(COD)   22‐06‐2023 at 18h43    44/112 

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Commission Proposal 
EP Mandate 
Council Mandate 
Draft Agreement 
 
 
  Formula 
 
 
 
 
 
HAVE ADOPTED THIS 
HAVE ADOPTED THIS 
HAVE ADOPTED THIS 
 
 
64 
 
REGULATION: 
REGULATION: 
REGULATION: 
 
 
 
  Chapter I 
 
 
 
 
 
Chapter I 
Chapter I 
Chapter I 
 
 
65 
General Provisions 
General Provisions 
General Provisions 
 
 
 
GENERAL PROVISIONS 
 
  Article 1 
 
 
 
 
 
Article 1 
Article 1 
Article 1 
 
 
66 
Subject matter 
Subject matter 
 
 
 
 
Subject matter 
 
  Article 1, first paragraph 
 
 
 
 
 
This Regulation establishes a set of 
This Regulation establishes a set of 
This Regulation establishes a set of 
 
measures and lays down a budget 
measures and lays down a budget 
measures and lays down a budget 
aimed at urgently strengthening the 
aimed at urgently strengthening the 
aimed at urgently strengthening the 
responsiveness and ability of the 
responsiveness and ability of the 
responsiveness and ability of the 
European Defence Technological 
European Defence Technological 
European Defence Technological 
and Industrial Base (EDTIB) to 
and Industrial Base (EDTIB) to 
and Industrial Base (EDTIB) to 
 
67 
 
ensure the timely availability and 
ensure the timely availability and 
ensure the timely availability and 
supply of ground-to-ground and 
supply of ground-to-ground and 
supply of ground-to-ground and 
artillery ammunition as well as 
artillery ammunition as well as 
artillery ammunition as well as 
missiles (‘relevant defence 
missiles (‘relevant defence 
missiles (‘relevant defence 
products’), in particular through the 
products’), in particular through the 
products’), in particular through the 
following: 
following: 
following:  
 
 
 
  Article 1, first paragraph, point (a) 
 
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on establishing the Act in Support of Ammunition Production   2023/0140(COD)   22‐06‐2023 at 18h43    45/112 

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Commission Proposal 
EP Mandate 
Council Mandate 
Draft Agreement 
 
 
 
 
 
(a)  an instrument financially 
(a)  an instrument financially 
(a)  an instrument financially 
 
supporting industrial reinforcement 
supporting industrial reinforcement 
supporting industrial reinforcement 
for the production of the relevant 
for the production of the relevant 
for the production of the relevant 
 
68 
defence products in the Union, 
defence products in the Union, 
defence products in the Union, 
 
including through the supply of their  including through the supply of their  including through the supply of their 
components (‘the ‘Instrument’); 
components (‘the ‘Instrument’); 
components and the corresponding 
 
 
inputs (‘the ‘Instrument’); 
 
  Article 1, first paragraph, point (b) 
 
 
 
 
 
(b)  the identification, mapping and 
(b)  the identification, mapping and 
 
 
continuous monitoring of the 
continuous monitoring of the 
deleted 
availability of the relevant defence 
availability of the relevant defence 
 
 
69 
 
products, their components and the 
products, their components and the 
corresponding inputs (raw 
corresponding inputs (raw 
materials); 
materials); 
 
 
  Article 1, first paragraph, point (c) 
 
 
 
 
 
(c)  the establishment of 
(c)  the establishment of 
(c)  the establishment of 
 
mechanisms, principles, and 
mechanisms, principles, and 
mechanisms, principles, and 
temporary rules to secure the timely 
temporary rules to secure the timely 
temporary rules to secure the timely 
 
70 
 
and lasting availability of the 
and lasting availability of the 
and lasting availability of the 
relevant defence products to their 
relevant defence products to their 
relevant defence products to their 
acquirers in the Union. 
acquirers in the Union. 
acquirers in the Union. 
 
 
 
  Article 1, second paragraph 
 
 
 
 
 
Based on an evaluation, pursuant to 
Based on an evaluation, pursuant to 
Based on an evaluation, pursuant to 
 
Article 28 below, of the results 
Article 28 below, of the results 
Article 2829 below, of the results 
 
71 
achieved by the implementation of 
achieved by the implementation of 
achieved by the implementation of 
 
this Regulation by mid-2024, 
this Regulation by mid-2024, 
this Regulation by mid-2024, 
notably in regard of the evolution of 
notably in regard of the evolution of 
notably in regard of the evolution of 
the security context, the opportunity 
the security context, the opportunity 
the security context, the opportunity 
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on establishing the Act in Support of Ammunition Production   2023/0140(COD)   22‐06‐2023 at 18h43    46/112 

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Commission Proposal 
EP Mandate 
Council Mandate 
Draft Agreement 
 
of the extension of the applicability 
of the extension of the applicability 
of the extension of the applicability 
of the set of measures and of the 
of the set of measures and of the 
of the set of measures and of the 
allocation of the corresponding 
allocation of the corresponding 
allocation of the  
additional budget will be considered.  additional budget will be considered.  corresponding additional budget 
 
 
willmay be considered. 
 
  Article 2 
 
 
 
 
 
Article 2 
Article 2 
Article 2 
 
 
72 
 
Definitions 
Definitions 
Definitions 
 
 
 
  Article 2, first paragraph 
 
 
 
 
 
For the purposes of this Regulation, 
For the purposes of this Regulation, 
For the purposes of this Regulation, 
 
 
73 
 
the following definitions apply: 
the following definitions apply: 
the following definitions apply: 
 
 
 
  Article 2, first paragraph, point (1) 
 
 
 
 
 
(1)  ‘raw materials’ means the 
(1)  ‘raw materials’ means the 
(1)  ‘raw materials’ means the basic 
 
 
74 
materials required to produce 
materials required to produce 
materials required to produce 
 
relevant defence products; 
relevant defence products;  
relevant defence products; 
 
 
 
  Article 2, first paragraph, point (2) 
 
 
 
 
 
(2)  ‘bottleneck” means a point of 
(2)  ‘bottleneck” means a point of 
(2)  ‘bottleneck" means a point of 
 
congestion in a production system 
congestion in a production system 
congestion in a production process 
 
75 
 
that stops or severely slows the 
that stops or severely slows the 
or system that stops or  
production; 
production; 
severely slows the production; 
 
 
 
  Article 2, first paragraph, point (3) 
 
 
 
 
 
 
76 
(3)  ‘recipient’ means an entity with 
(3)  ‘recipient’ means an entity with 
(3)  ‘recipient’ means an entity with 
 
 
which a funding or financing 
which a funding or financing 
which a funding or financing 
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on establishing the Act in Support of Ammunition Production   2023/0140(COD)   22‐06‐2023 at 18h43    47/112 

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Commission Proposal 
EP Mandate 
Council Mandate 
Draft Agreement 
 
agreement has been signed, or to 
agreement has been signed, or to 
agreement has been signed, or to 
which a funding or financing 
which a funding or financing 
which a funding or financing 
decision has been notified; 
decision has been notified; 
decision has been notified; 
 
 
 
  Article 2, first paragraph, point (4) 
 
 
 
 
 
(4)  ‘applicant’ means a natural 
(4)  ‘applicant’ means a natural 
(4)  ‘applicant’ means a natural 
 
person or an entity with or without 
person or an entity with or without 
person or an entity with or without 
legal personality who has submitted 
legal personality who has submitted 
legal personality who has submitted 
an application in a grant award 
an application in a grant award 
an application in a grant award 
procedure; 
procedure; 
procedurean entity that submitts 
 
77 
 
 
 
an application for a support from 
the Instrument after a call for 
proposals or in accordance with 
Article 195 of the Financial 
Regulation;  
 
  Article 2, first paragraph, point (5) 
 
 
 
 
 
(5)  ‘control’ means the ability to 
(5)  ‘control’ means the ability to 
(5)  ‘control’ means the ability to 
 
exercise a decisive influence on a 
exercise a decisive influence on a 
exercise a decisive influence on a 
 
78 
legal entity directly, or indirectly 
legal entity directly, or indirectly 
legal entity directly, or indirectly 
 
through one or more intermediate 
through one or more intermediate 
through one or more intermediate 
legal entities; 
legal entities; 
legal entities; 
 
 
 
  Article 2, first paragraph, point (6) 
 
 
 
 
 
(6)  ‘executive management 
(6)  ‘executive management 
(6)  ‘executive management 
 
structure’ means a body of a legal 
structure’ means a body of a legal 
structure’ means a body of a legal 
entity, appointed in accordance with  entity, appointed in accordance with  entity, appointed in accordance with 
 
79 
national law, and, where applicable, 
national law, and, where applicable, 
national law, and, where applicable, 
 
reporting to the chief executive 
reporting to the chief executive 
reporting to the chief executive 
officer, which is empowered to 
officer, which is empowered to 
officer, which is empowered to 
establish the legal entity’s strategy, 
establish the legal entity’s strategy, 
establish the legal entity’s strategy, 
objectives and overall direction, and  objectives and overall direction, and  objectives and overall direction, and 
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on establishing the Act in Support of Ammunition Production   2023/0140(COD)   22‐06‐2023 at 18h43    48/112 

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Commission Proposal 
EP Mandate 
Council Mandate 
Draft Agreement 
 
which oversees and monitors 
which oversees and monitors 
which oversees and monitors 
management decision-making; 
management decision-making; 
management decision-making; 
 
 
 
  Article 2, first paragraph, point (7) 
 
 
 
 
 
(7)  ‘entity’ means a legal person 
(7)  ‘entity’ means a legal person 
(7)  ‘entity’ means a legal person 
 
created and recognised as such under  created and recognised as such under  created and recognised as such under 
Union, national or international law,  Union, national or international law,  Union, national or  
which has legal personality and the 
which has legal personality and the 
international law, which has legal 
capacity to act in its own name, 
capacity to act in its own name, 
personality and the capacity to act in 
 
80 
exercise rights and be subject to 
exercise rights and be subject to 
its own name, exercise rights and be 
 
obligations, or an entity which does 
obligations, or an entity which does 
subject to obligations, or an entity 
not have legal personality as referred  not have legal personality as referred  which does not have legal 
to in point (c) of Article 197(2) of 
to in point (c) of Article 197(2) of 
personality as referred to in point (c) 
Regulation (EU, Euratom) 
Regulation (EU, Euratom) 
of Article 197(2) of Regulation (EU, 
2018/1046; 
2018/1046; 
Euratom) 2018/1046; 
 
 
 
  Article 2, first paragraph, point (8) 
 
 
 
 
 
(8)  ‘classified information’ means 
(8)  ‘classified information’ means 
(8)  ‘classified information’ means 
 
information or material, in any form,  information or material, in any form,  information or material, in any form, 
the unauthorised disclosure of which  the unauthorised disclosure of which  the unauthorised  
could cause varying degrees of 
could cause varying degrees of 
disclosure of which could cause 
prejudice to the interests of the 
prejudice to the interests of the 
varying degrees of prejudice to the 
Union, or of one or more of the 
Union, or of one or more of the 
interests of the Union, or of one or 
Member States, and which bears an 
Member States, and which bears an 
more of the Member States, and 
EU classification marking or a 
EU classification marking or a 
which bears an EU classification 
 
81 
 
corresponding classification 
corresponding classification 
marking or a corresponding 
marking, as established in the 
marking, as established in the 
classification marking, as established 
Agreement between the Member 
Agreement between the Member 
in the Agreement between the 
States of the European Union, 
States of the European Union, 
Member States of the European 
meeting within the Council, 
meeting within the Council, 
Union, meeting within the Council, 
regarding the protection of classified  regarding the protection of classified  regarding the protection of classified 
information exchanged in the 
information exchanged in the 
information exchanged in the 
interests of the European Union; 
interests of the European Union; 
interests of the European Union; 
 
 
 
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on establishing the Act in Support of Ammunition Production   2023/0140(COD)   22‐06‐2023 at 18h43    49/112 

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Commission Proposal 
EP Mandate 
Council Mandate 
Draft Agreement 
 
  Article 2, first paragraph, point (9) 
 
 
 
 
 
(9)  ‘sensitive information’ means 
(9)  ‘sensitive information’ means 
(9)  ‘sensitive information’ means 
 
information and data that is to be 
information and data that is to be 
information and data that is to be 
protected from unauthorised access 
protected from unauthorised access 
protected from unauthorised access 
or disclosure because of obligations 
or disclosure because of obligations 
or disclosure because of obligations 
 
82 
 
laid down in Union or national law 
laid down in Union or national law 
laid down in Union or national  
or in order to safeguard the privacy 
or in order to safeguard the privacy 
law or in order to safeguard the 
or security of a natural or legal 
or security of a natural or legal 
privacy or security of a natural or 
person; 
person; 
legal person; 
 
 
 
  Article 2, first paragraph, point (10) 
 
 
 
 
 
(10)  ‘non-associated third-country 
(10)  ‘non-associated third-country 
(10)  ‘non-associated third-country 
 
entity’ means a legal entity that is 
entity’ means a legal entity that is 
entity’ means a legal entity that is 
established in a non-associated third 
established in a non-associated third 
established in a non-associated third 
country or, where it is established in  country or, where it is established in  country or, where it is established in 
 
83 
 
the Union or in an associated 
the Union or in an associated 
the Union or in an associated 
country, that has its executive 
country, that has its executive 
country, that has its executive 
management structures in a non-
management structures in a non-
management structures in a non-
associated third country; 
associated third country; 
associated third country; 
 
 
 
  Article 2, first paragraph, point (11) 
 
 
 
 
 
(11)  ‘lead production time’ means 
(11)  ‘lead production time’ means 
(11)  ‘lead production time’ means 
 
the period of time between a 
the period of time between a 
the period of time between a 
 
84 
 
purchase order being placed and the 
purchase order being placed and the 
purchase order being placed and the 
manufacturer completing the order; 
manufacturer completing the order; 
manufacturer completing the order; 
 
 
 
  Article 2, first paragraph, point (12) 
 
 
 
 
 
(12)  ‘relevant defence products’ 
(12)  ‘relevant defence products’ 
(12)  ‘relevant defence products’ 
 
 
85 
means ground-to-ground and 
means ground-to-ground and 
means ground-to-ground and 
 
artillery ammunition as well as 
artillery ammunition as well as 
artillery  
missiles. 
missiles. 
ammunition as well as missiles. 
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on establishing the Act in Support of Ammunition Production   2023/0140(COD)   22‐06‐2023 at 18h43    50/112 

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Commission Proposal 
EP Mandate 
Council Mandate 
Draft Agreement 
 
 
 
 
  Article 2, first paragraph, point (13) 
 
 
 
 
 
(13)  ‘supply-critical defence 
(13)  ‘supply-critical defence 
 
 
products’ means relevant defence 
products’ means relevant defence 
deleted 
products or key components or raw 
products or key components or raw 
 
materials thereof that have been 
materials thereof that have been 
identified as being seriously affected  identified as being seriously affected 
 
86 
 
by disruption or potential disruption 
by disruption or potential disruption 
of the functioning of the Single 
of the functioning of the Single 
Market and its supply chains 
Market and its supply chains 
resulting in actual or potential 
resulting in actual or potential 
significant shortages. 
significant shortages. 
 
 
  Article 2, first paragraph, point (14) 
 
 
 
 
 
(14)  ‘blending operation’ means an 
(14)  ‘blending operation’ means an 
(14)  ‘blending operation’ means an 
 
action supported by the Union 
action supported by the Union 
action supported by the Union 
budget, including within a blending 
budget, including within a blending 
budget, including within a blending 
facility or platform as defined in 
facility or platform as defined in 
facility or platform as defined in 
point (6) of Article 2 of the Financial  point (6) of Article 2 of the Financial  point (6) of Article 2 of the Financial 
Regulation, that combines non-
Regulation, that combines non-
Regulation, that combines non-
 
87 
repayable forms of support or 
repayable forms of support or 
repayable forms of support or 
 
financial instruments from the Union  financial instruments from the Union  financial instruments from the Union 
budget with repayable forms of 
budget with repayable forms of 
budget with repayable forms of 
support from development or other 
support from development or other 
support from development or other 
public finance institutions as well as  public finance institutions as well as 
public finance institutions as well as 
from commercial finance institutions  from commercial finance institutions  from commercial finance institutions 
and investors; 
and investors; 
and investors; 
 
 
 
  Article 2, first paragraph, point (15) 
 
 
 
 
 
(15)  ‘Seal of Excellence’ means a 
(15)  ‘Seal of Excellence’ means a 
(15)  ‘Seal of Excellence’ means a 
 
 
88 
 
quality label which shows that a 
quality label which shows that a 
quality label which shows that a 
proposal submitted to a call for 
proposal submitted to a call for 
proposal submitted to a call for 
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on establishing the Act in Support of Ammunition Production   2023/0140(COD)   22‐06‐2023 at 18h43    51/112 

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Commission Proposal 
EP Mandate 
Council Mandate 
Draft Agreement 
 
proposals under the Instrument has 
proposals under the Instrument has 
proposals under the Instrument has 
passed all of the evaluation 
passed all of the evaluation 
passed all of the evaluation 
thresholds set out in the work 
thresholds set out in the work 
thresholds set out in the work 
programme, but could not be funded  programme, but could not be funded  programme, but could not be funded 
due to a lack of budget available for 
due to a lack of budget available for 
due to a lack of budget available for 
that call for proposals in the work 
that call for proposals in the work 
that call for proposals in the work 
programme, and might receive 
programme, and might receive 
programme, and might receive 
support from other Union or national  support from other Union or national  support from other Union or national 
sources of funding; 
sources of funding; 
sources of funding; 
 
 
 
  Article 3 
 
 
 
 
 
Article 3 
Article 3 
Article 3 
 
 
89 
Third countries associated to the 
Third countries associated to the 
Third countries Associated to the 
 
Instrument 
Instrument 
Instrumentcountries 
 
 
 
  Article 3, first paragraph 
 
 
 
 
 
The Instrument shall be open to the 
The Instrument shall be open to the 
The Instrument shall be open to the 
 
participation of members of the 
participation of members of the 
participation of members of the 
European Free Trade Association 
European Free Trade Association 
European Free Trade Association 
which are members of the European 
which are members of the European 
which are members of the European 
 
90 
Economic Area (associated 
Economic Area (associated 
Economic Area (associated 
 
countries), in accordance with the 
countries), in accordance with the 
countries), in accordance with the 
conditions laid down in the 
conditions laid down in the 
conditions laid down in the 
Agreement on the European 
Agreement on the European 
Agreement on the European 
Economic Area. 
Economic Area. 
Economic Area. 
 
 
 
  CHAPTER II 
 
 
 
 
 
CHAPTER II 
CHAPTER II 
CHAPTER II 
 
 
91 
 
THE INSTRUMENT 
THE INSTRUMENT 
THE INSTRUMENT 
 
 
 
  Article 4 
 
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on establishing the Act in Support of Ammunition Production   2023/0140(COD)   22‐06‐2023 at 18h43    52/112 

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Commission Proposal 
EP Mandate 
Council Mandate 
Draft Agreement 
 
 
 
 
 
Article 4 
Article 4 
Article 4 
 
 
92 
 
Objectives of the Instrument 
Objectives of the Instrument 
Objectives of the Instrument 
 
 
 
  Article 4(1) 
 
 
 
 
 
1.  The objective of the Instrument is  1.  The objective of the Instrument is  1.  The objective of the Instrument is   
to foster the efficiency and 
to foster the efficiency and 
to foster the efficiency and 
competitiveness of the European 
competitiveness of the European 
competitiveness of the  
Defence Technological and 
Defence Technological and 
European Defence Technological 
 
93 
Industrial Base (EDTIB) to support 
Industrial Base (EDTIB) to support 
and Industrial Base (EDTIB) to 
 
the ramp up of the production 
the ramp up of the production 
support the ramp up of the 
capacity and timely delivery of 
capacity and timely delivery of 
production capacity and timely 
relevant defence products through 
relevant defence products through 
delivery of relevant defence products 
industrial reinforcement. 
industrial reinforcement. 
through industrial reinforcement. 
 
 
 
  Article 4(2) 
 
 
 
 
 
2.  The industrial reinforcement shall  2.  The industrial reinforcement shall  2.  The industrial reinforcement shall   
in particular consist of initiating and  in particular consist of initiating and  in particular consist of initiating and 
speeding up the adjustment of 
speeding up the adjustment of 
speeding up the adjustment of 
industry to the rapid structural 
industry to the rapid structural 
industry to the rapid structural 
changes imposed by the supply crisis  changes imposed by the supply crisis  changes revealed or exacerbated 
affecting the relevant defence 
affecting the relevant defence 
by the response to the Russian 
products. This should include the 
products. This should include the 
aggression against Ukraine and 
improvement and acceleration of the  improvement and acceleration of the  imposed by the related supply crisis 
 
94 
capacity of adaptation of supply 
capacity of adaptation of supply 
affecting the relevant defence 
 
chains for relevant defence products,  chains for relevant defence products,  products. This should include the 
the creation of manufacturing 
the creation of manufacturing 
improvement and acceleration of the 
capacities or their ramp-up, and a 
capacities or their ramp-up, and a 
capacity of adaptation of supply 
reduction of their lead production 
reduction of their lead production 
chains for relevant defence products, 
time for the relevant defence 
time for the relevant defence 
the creation of new manufacturing 
products throughout the Union 
products throughout the Union 
capacities or their ramp-upthe 
notably thanks to the intensification 
notably thanks to the intensification 
ramp-up of existing ones, and a 
and widening of cross-border 
and widening of cross-border 
reduction of their lead production 
cooperation between the relevant 
cooperation between the relevant 
time for the relevant defence 
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on establishing the Act in Support of Ammunition Production   2023/0140(COD)   22‐06‐2023 at 18h43    53/112 

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Commission Proposal 
EP Mandate 
Council Mandate 
Draft Agreement 
 
legal entities. 
legal entities. 
products throughout the Union 
 
 
notably thanks to the intensification 
and widening of cross-border 
cooperation  
between the relevant legal entities. 
 
  Article 5 
 
 
 
 
 
Article 5 
Article 5 
Article 5 
 
 
95 
 
Budget 
Budget 
Budget 
 
 
 
  Article 5(1) 
 
 
 
 
 
1.  The financial envelope for the 
1.  The financial envelope for the 
1.  The financial envelope for the 
 
implementation of the Instrument for  implementation of the Instrument for  implementation of the Instrument for 
 
96 
the period from its entry into force 
the period from its entry into force 
the period from its entry into force 
 
until 30 June 2025 shall be set a 
until 30 June 2025 shall be set a 
until 30 June 2025 shall be set a 
EUR 500 Million in current prices. 
EUR 500 Million in current prices. 
EUR 500 Million in current prices. 
 
 
 
  Article 5(2) 
 
 
 
 
 
2.  Within the financial envelope 
2.  Within the financial envelope 
2.  Within the financial envelope 
 
defined in paragraph 1 of this article,  defined in paragraph 1 of this article,  defined in paragraph 1 of this article, 
up to EUR 50 Million may be used 
up to EUR 50 Million may be used 
up to EUR 50 Million may be used 
 
97 
 
as a blending operation in the frame 
as a blending operation in the frame 
as a blending operation in the frame 
of the ‘Ramp-up Fund’ defined in 
of the ‘Ramp-up Fund’ defined in 
of the ‘Ramp-up Fund’ defined in 
article 21. 
article 21. 
article 21. 
 
 
 
  Article 5(3), first subparagraph 
 
 
 
 
 
Resources allocated to Member 
Resources allocated to Member 
3.  Resources allocated to Member 
 
 
98 
States under shared management 
States under shared management 
States under shared management 
 
may, at their request, be transferred 
may, at their request, be transferred 
may, at their request, be  
to the Instrument subject to the 
to the Instrument subject to the 
transferred to the Instrument subject 
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on establishing the Act in Support of Ammunition Production   2023/0140(COD)   22‐06‐2023 at 18h43    54/112 

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Commission Proposal 
EP Mandate 
Council Mandate 
Draft Agreement 
 
conditions set out in the relevant 
conditions set out in the relevant 
to the conditions set out in the 
provisions of the Regulation (EU) 
provisions of the Regulation (EU) 
relevant provisions of the Regulation 
2021/1060 of the European 
2021/1060 of the European 
(EU) 2021/1060 of the European 
Parliament and the Council1. The 
Parliament and the Council1. The 
Parliament and the Council116. The 
Commission shall implement those 
Commission shall implement those 
Commission shall implement those 
resources directly in accordance with  resources directly in accordance with  resources directly in accordance with 
point (a) of the first subparagraph of  point (a) of the first subparagraph of  point (a) of the first subparagraph of 
Article 62(1) of Regulation (EU, 
Article 62(1) of Regulation (EU, 
Article 62(1) of Regulation (EU, 
Euratom) 2018/1046 of the 
Euratom) 2018/1046 of the 
Euratom) 2018/1046 of the 
European Parliament and the 
European Parliament and the 
European Parliament and the 
Council2. Those resources shall be 
Council2. Those resources shall be 
Council217. Those resources shall be 
used for the benefit of the Member 
used for the benefit of the Member 
used for the benefit of the Member 
State concerned. 
State concerned. 
State concerned.  
_________ 
_________ 
_________ 
1. Regulation (EU) 2021/1060 of the 
1. Regulation (EU) 2021/1060 of the 
1. 16. Regulation (EU) 2021/1060 of the 
European Parliament and of the Council of 
European Parliament and of the Council of 
European Parliament and of the Council of 
24 June 2021 laying down common 
24 June 2021 laying down common 
24 June 2021 laying down common 
provisions on the European Regional 
provisions on the European Regional 
provisions on the European Regional 
Development Fund, the European Social 
Development Fund, the European Social 
Development Fund, the European Social 
Fund Plus, the Cohesion Fund, the Just 
Fund Plus, the Cohesion Fund, the Just 
Fund Plus, the Cohesion Fund, the Just 
Transition Fund and the European Maritime, 
Transition Fund and the European Maritime, 
Transition Fund and the European Maritime, 
Fisheries and Aquaculture Fund and 
Fisheries and Aquaculture Fund and 
Fisheries and Aquaculture Fund and 
financial rules for those and for the Asylum, 
financial rules for those and for the Asylum, 
financial rules for those and for the Asylum, 
Migration and Integration Fund, the Internal 
Migration and Integration Fund, the   
Migration and Integration Fund, the Internal 
Security Fund and the Instrument for 
Internal Security Fund and the Instrument for  Security Fund and the Instrument for 
Financial Support for Border Management 
Financial Support for Border Management 
Financial Support for Border Management 
and Visa Policy (OJ L 231, 30.6.2021, p. 
and Visa   
and Visa Policy (OJ L 231, 30.6.2021, p. 
159–706). 
Policy (OJ L 231, 30.6.2021, p. 159–706). 
159– 706). 
2. Regulation (EU, Euratom) 2018/1046 of 
2. Regulation (EU, Euratom) 2018/1046 of 
2. 17. Regulation (EU, Euratom) 2018/1046 
the European Parliament and of the Council 
the European Parliament and of the Council 
of the European Parliament and of the 
of 18 July 2018 on the financial rules 
of 18 July 2018 on the financial rules 
Council of 18 July 2018 on the financial 
applicable to the general budget of the 
applicable to the general budget of the 
rules applicable to the general budget of the 
Union, amending Regulations (EU) No 
Union, amending Regulations (EU) No 
Union, amending Regulations (EU) No 
1296/2013, (EU) No 1301/2013, (EU) No 
1296/2013, (EU) No 1301/2013, (EU) No 
1296/2013, (EU) No 1301/2013, (EU) No 
1303/2013, (EU) No 1304/2013, (EU) No 
1303/2013, (EU) No 1304/2013, (EU) No 
1303/2013, (EU) No 1304/2013, (EU) No 
1309/2013, (EU) No 1316/2013, (EU) No 
1309/2013, (EU) No 1316/2013, (EU) No 
1309/2013, (EU) No 1316/2013, (EU) No 
223/2014, (EU) No 283/2014, and Decision 
223/2014, (EU) No 283/2014, and Decision 
223/2014, (EU) No 283/2014, and Decision 
No 541/2014/EU and repealing Regulation 
No 541/2014/EU and repealing   
No 541/2014/EU and repealing Regulation 
(EU, Euratom) No 966/2012 (OJ L 193, 
Regulation (EU, Euratom) No 966/2012 (OJ 
(EU, Euratom) No 966/2012 (OJ L 193, 
30.7.2018, p. 1–222). 
L 193, 30.7.2018, p. 1–222). 
30.7.2018, p. 1–222). 
 
 
 
  Article 5(3), second subparagraph 
 
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on establishing the Act in Support of Ammunition Production   2023/0140(COD)   22‐06‐2023 at 18h43    55/112 

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Commission Proposal 
EP Mandate 
Council Mandate 
Draft Agreement 
 
 
 
 
 
Where the Commission has not 
Where the Commission has not 
Where the Commission has not 
 
entered into a legal commitment 
entered into a legal commitment 
entered into a legal commitment 
under direct management for 
under direct management for 
under direct management for 
resources transferred in accordance 
resources transferred in accordance 
resources transferred in accordance 
with this paragraph, the 
with this paragraph, the 
with this paragraph, the 
corresponding uncommitted 
corresponding uncommitted 
corresponding uncommitted 
 
99 
resources may be transferred back to  resources may be transferred back to  resources may be transferred back to 
 
the Fund from which they have been  the Fund from which they have been  the Fund from which they have been 
initially transferred and allocated to 
initially transferred and allocated to 
initially transferred and allocated to 
one or more programmes in 
one or more programmes in 
one or more programmes in 
accordance with the conditions set 
accordance with the conditions set 
accordance with the conditions set 
out in the relevant provisions of 
out in the relevant provisions of 
out in the relevant provisions of 
Regulation (EU) 2021/1060. 
Regulation (EU) 2021/1060. 
Regulation (EU) 2021/1060. 
 
 
 
  Article 5(4) 
 
 
 
 
 
4.  The amount referred to in 
4.  The amount referred to in 
4.  The amount referred to in 
 
paragraph 1 may also be used for 
paragraph 1 may also be used for 
paragraph 1 may also be used for 
technical and administrative 
technical and administrative 
technical and administrative  
assistance for the implementation of 
assistance for the implementation of 
assistance for the implementation of 
 
100 
the Instrument, such as preparatory, 
the Instrument, such as preparatory, 
the Instrument, such as preparatory, 
 
monitoring, control, audit and 
monitoring, control, audit and 
monitoring, control, audit and 
evaluation activities including 
evaluation activities including 
evaluation activities including 
corporate information technology 
corporate information technology 
corporate information technology  
systems. 
systems. 
systems. 
 
 
 
  Article 5(5) 
 
 
 
 
 
5.  Budgetary commitments for 
5.  Budgetary commitments for 
5.  Budgetary commitments for 
 
activities extending over more than 
activities extending over more than 
activities extending over more than 
 
101 
one financial year may be broken 
one financial year may be broken 
one financial year may be broken 
 
down over several years into annual 
down over several years into annual 
down over several years into annual 
instalments. 
instalments. 
instalments. 
 
 
 
  Article 5(6) 
 
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on establishing the Act in Support of Ammunition Production   2023/0140(COD)   22‐06‐2023 at 18h43    56/112 

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Commission Proposal 
EP Mandate 
Council Mandate 
Draft Agreement 
 
 
 
 
 
6.  The budget of the instrument can 
6.  The budget of the instrument can 
6.  The budget of the instrument can 
 
be reinforced, where the situation 
be reinforced, where the situation 
be reinforced, where the situation 
 
102 
requires it or in case the Regulation 
requires it or in case the Regulation 
requires it or in case the Regulation 
 
is extended, in accordance with 
is extended, in accordance with 
is extended, in accordance with 
Article 1, last paragraph. 
Article 1, last paragraph. 
Article 1, last paragraph. 
 
 
 
  Article 6 
 
 
 
 
 
Article 6 
Article 6 
Article 6 
 
 
103 
 
Cumulative and alternative funding 
Cumulative and alternative funding 
Cumulative and alternative funding 
 
 
 
  Article 6(1) 
 
 
 
 
 
1.  The Instrument shall be 
1.  The Instrument shall be 
1.  The Instrument shall be 
 
implemented in synergy with other 
implemented in synergy with other 
implemented in synergy with other 
Union programmes. An action that 
Union programmes. An action that 
Union programmes. An action that 
has received a contribution from 
has received a contribution from 
has received a contribution from 
another Union programme may also 
another Union programme may also 
another Union programme may also 
receive a contribution under the 
receive a contribution under the 
receive a contribution under the 
Instrument, provided that the 
Instrument, provided that the 
Instrument, provided that the 
contributions do not cover the same 
contributions do not cover the same 
contributions do not cover the same 
costs. The rules of the relevant 
costs. The rules of the relevant 
costs. The rules of the relevant 
 
104 
Union programme shall apply to the 
Union programme shall apply to the 
Union programme shall apply to the 
 
corresponding contribution to the 
corresponding contribution to the 
corresponding contribution to the 
action. The cumulative financing 
action. The cumulative financing 
action. The cumulative financing 
shall not exceed the total eligible 
shall not exceed the total eligible 
shall not exceed the total eligible 
costs of the action. The support from  costs of the action. The support from  costs of the action. The support from 
the different Union programmes may  the different Union programmes may  the different Union programmes may 
be calculated on a pro-rata basis in 
be calculated on a pro-rata basis in 
be calculated on a pro-rata basis in 
accordance with the documents 
accordance with the documents 
accordance with the documents 
setting out the conditions for 
setting out the conditions for 
setting out the conditions for 
support. 
support. 
support. 
 
 
 
  Article 6(2) 
 
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on establishing the Act in Support of Ammunition Production   2023/0140(COD)   22‐06‐2023 at 18h43    57/112 

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Commission Proposal 
EP Mandate 
Council Mandate 
Draft Agreement 
 
 
 
 
 
2.  In order to be awarded a Seal of 
2.  In order to be awarded a Seal of 
2.  In order to be awarded a Seal of 
 
Excellence under the Instrument, 
Excellence under the Instrument, 
Excellence under the Instrument, 
 
105 
 
actions shall comply with all of the 
actions shall comply with all of the 
actions shall comply  
following conditions: 
following conditions: 
with all of the following conditions: 
 
 
 
  Article 6(2), point (a) 
 
 
 
 
 
(a)  they have been assessed in a call  (a)  they have been assessed in a call  (a)  they have been assessed in a call   
 
106 
 
for proposals under the Instrument; 
for proposals under the Instrument;  
for proposals under the Instrument; 
 
 
 
  Article 6(2), point (b) 
 
 
 
 
 
(b)  they comply with the minimum 
(b)  they comply with the minimum 
(b)  they comply with the minimum 
 
 
107 
quality requirements of that call for 
quality requirements of that call for 
quality requirements of that call for 
 
proposals; 
proposals; 
proposals; 
 
 
 
  Article 6(2), point (c) 
 
 
 
 
 
(c)  they are not financed under that 
(c)  they are not financed under that 
(c)  they are not financed under that 
 
 
108 
call for proposals due to budgetary 
call for proposals due to budgetary 
call for proposals due to budgetary 
 
constraints. 
constraints. 
constraints. 
 
 
 
  Article 6(3) 
 
 
 
 
 
3.  When proposing amended or new  3.  When proposing amended or new  3.  When proposing amended or new   
Recovery and Resilience Plans, in 
Recovery and Resilience Plans, in 
Recovery and Resilience Plans, in 
accordance with Regulation (EU) 
accordance with Regulation (EU) 
accordance with Regulation (EU) 
2021/241 of the European 
2021/241 of the European 
2021/241 of the European 
 
109 
 
Parliament and the Council, Member  Parliament and the Council, Member  Parliament and the Council, Member 
States shall be able to include 
States shall be able to include 
States shall be able tomay include 
measures which also contribute to 
measures which also contribute to 
measures which also contribute to 
the objectives of this instrument, 
the objectives of this instrument, 
the objectives of this instrument, 
notably measures linked to proposals  notably measures linked to proposals  notably measures linked to proposals 
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on establishing the Act in Support of Ammunition Production   2023/0140(COD)   22‐06‐2023 at 18h43    58/112 

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Commission Proposal 
EP Mandate 
Council Mandate 
Draft Agreement 
 
submitted to a call for proposals 
submitted to a call for proposals 
submitted to a call for proposals 
under the Instrument which were 
under the Instrument which were 
under the Instrument which were 
awarded a Seal of Excellence. 
awarded a Seal of Excellence.  
awarded a Seal of Excellence. 
 
 
 
  Article 6(4) 
 
 
 
 
 
4.  Article 8(5) shall apply by 
4.  Article 8(5) shall apply by 
4.  Article 8(5) shall apply by 
 
 
110 
analogy to actions funded in 
analogy to actions funded in 
analogy to actions funded in 
 
accordance with this Article. 
accordance with this Article. 
accordance with this Article. 
 
 
 
  Article 7 
 
 
 
 
 
Article 7 
Article 7 
Article 7 
 
 
111 
 
Forms of Union funding 
Forms of Union funding 
Forms of Union funding 
 
 
 
  Article 7(1) 
 
 
 
 
 
1.  The Instrument shall be 
1.  The Instrument shall be 
1.  The Instrument shall be 
 
implemented under direct 
implemented under direct 
implemented under direct 
management and as concerns the 
management and as concerns the 
management and as concerns the  
management of the Ramp-up Fund 
management of the Ramp-up Fund 
management of the Ramp-up Fund 
of Article 21 in indirect management  of Article 21 in indirect management  of Article 21 in indirect management 
with bodies referred to in Article 
with bodies referred to in Article 
with bodies referred to in Article 
62(1)(c) Regulation (EU, Euratom) 
62(1)(c) Regulation (EU, Euratom) 
62(1)(c) Regulation (EU, Euratom) 
2018/1046. The Instrument may 
2018/1046. The Instrument may 
2018/1046. The Instrument may 
 
112 
provide funding in any of the forms 
provide funding in any of the forms 
provide funding in any of the forms 
 
laid down in the Financial 
laid down in the Financial 
laid down in the Financial 
Regulation, including financing in 
Regulation, including financing in 
Regulation, including financing in 
the form of financial instruments 
the form of financial instruments 
the form of financial instruments 
within blending operations. Blending  within blending operations. Blending  within blending operations. Blending 
operations shall be carried out in 
operations shall be carried out in 
operations shall be carried out in 
accordance with Title X of 
accordance with Title X of 
accordance with Title X of 
Regulation (EU, Euratom) 
Regulation (EU, Euratom) 
Regulation (EU, Euratom) 
2018/1046, Regulation (EU) 
2018/1046, Regulation (EU) 
2018/1046, Regulation (EU) 
2021/523 and Article 21 of this 
2021/523 and Article 21 of this 
2021/523 and Article 21 of this 
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on establishing the Act in Support of Ammunition Production   2023/0140(COD)   22‐06‐2023 at 18h43    59/112 

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Commission Proposal 
EP Mandate 
Council Mandate 
Draft Agreement 
 
Regulation. 
Regulation. 
Regulation. 
 
 
 
  Article 7(2) 
 
 
 
 
 
2.  By way of derogation from 
2.  By way of derogation from 
2.  By way of derogation from 
 
Article 193(2) from Regulation (EU,  Article 193(2) from Regulation (EU,  Article 193(2) from Regulation (EU, 
Euratom) 2018/1046, financial 
Euratom) 2018/1046, financial 
Euratom) 2018/1046,  
contributions may, where relevant 
contributions may, where relevant 
financial contributions may, where 
and necessary for the 
and necessary for the 
relevant and necessary for the 
implementation of an action, cover 
implementation of an action, cover 
implementation of an  
actions started prior to the date of 
actions started prior to the date of 
action, cover actions started prior to 
 
113 
 
the submission of the proposal for 
the submission of the proposal for 
the date of the submission of the 
those actions, provided that those 
those actions, provided that those 
proposal for those  
actions did not start before 20 March  actions did not start before 20 March  actions, provided that those actions 
2023. 
2023. 
did not start before 20 March 2023 
 
 
and have not been completed 
before the signature of the grant 
agreement. 
 
  Article 8 
 
 
 
 
 
Article 8 
Article 8 
Article 8 
 
 
114 
 
Eligible actions  
Eligible actions  
Eligible actions  
 
 
 
  Article 8(1) 
 
 
 
 
 
1.  Only actions implementing the 
1.  Only actions implementing the 
1.  Only actions implementing the 
 
 
115 
objectives set out in Article 4 shall 
objectives set out in Article 4 shall 
objectives set out in Article 4 shall 
 
be eligible for funding. 
be eligible for funding. 
be eligible for funding. 
 
 
 
  Article 8(2) 
 
 
 
 
 
 
116 
2.  The Instrument shall provide 
2.  The Instrument shall provide 
2.  The Instrument shall provide 
 
 
financial support for actions 
financial support for actions 
financial support for actions 
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on establishing the Act in Support of Ammunition Production   2023/0140(COD)   22‐06‐2023 at 18h43    60/112 

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Commission Proposal 
EP Mandate 
Council Mandate 
Draft Agreement 
 
addressing identified bottlenecks in 
addressing identified bottlenecks in 
addressing identified bottlenecks in 
production capacities and supply 
production capacities and supply 
production capacities and supply 
chains with a view to secure and 
chains with a view to secure and 
chains, to be identified in the work 
accelerate production to ensure the 
accelerate production to ensure the 
programme, with a view to secure 
effective supply and timely 
effective supply and timely 
and accelerate production and to 
availability of the relevant defence 
availability of the relevant defence 
ensure the effective supply and 
products. 
products. 
timely availability of the relevant 
 
 
defence products. 
 
  Article 8(3) 
 
 
 
 
 
3.  Eligible actions shall relate to one  3.  Eligible actions shall relate to one  3.  Eligible actions shall relate to one   
or more of the following activities 
or more of the following activities 
or more of the following activities 
and be exclusively related to the 
and be exclusively related to the 
and be exclusively related to the 
production capacities of relevant-
production capacities of relevant-
production capacities of relevant-
 
117 
defence products, including their 
defence products, including their 
defence products, including their 
 
components and raw materials 
components and raw materials 
components and raw materials 
insofar as they are intended or used 
insofar as they are intended or used 
insofar as they are intended or used 
wholly for the production of relevant  wholly for the production of relevant  wholly for the production of relevant 
defence products: 
defence products: 
defence products: 
 
 
 
  Article 8(3), point (a) 
 
 
 
 
 
(a)  the optimisation, expansion, 
(a)  the optimisation, expansion, 
(a)  the optimisation, expansion, 
 
modernisation, upgrading or 
modernisation, upgrading or 
modernisation, upgrading or 
repurposing of existing, or the 
repurposing of existing, or the 
repurposing of existing, or  
establishment of new, production 
establishment of new, production 
the establishment of new, production 
capacities, in relation to the relevant 
capacities, in relation to the relevant 
capacities, in relation to the relevant 
defence products or their raw 
defence products or their raw 
defence products or their raw 
 
118 
 
materials and components, insofar as  materials and components, insofar as  materials and components, insofar as 
the latter are used as direct input for 
the latter are used as direct input for 
the latter are used as direct input for 
the production of relevant defence 
the production of relevant defence 
the production of relevant defence 
products, notably with a view to 
products, notably with a view to 
products, notably with a view to 
increasing production capacity or 
increasing production capacity or 
increasing production capacity or 
reducing lead production times, 
reducing lead production times, 
reducing lead production times, 
including on the basis of the 
including on the basis of the 
including on the basis of the 
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on establishing the Act in Support of Ammunition Production   2023/0140(COD)   22‐06‐2023 at 18h43    61/112 

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Commission Proposal 
EP Mandate 
Council Mandate 
Draft Agreement 
 
procurement or acquisition of the 
procurement or acquisition of the 
procurement or acquisition of the 
requisite machine tools and any 
requisite machine tools and any 
requisite machine tools and any 
other necessary input; 
other necessary input; 
other necessary input; 
 
 
 
  Article 8(3), point (b) 
 
 
 
 
 
(b)  the establishment of cross-
(b)  the establishment of cross-
(b)  the establishment of cross-
 
borders industrial partnerships, 
borders industrial partnerships, 
borders industrial partnerships, 
including through public private 
including through public private 
including through public  
partnerships or other forms of 
partnerships or other forms of 
private partnerships or other forms 
industrial cooperation, in a joint 
industrial cooperation, in a joint 
of industrial cooperation, in a joint 
industrial effort, including activities 
industrial effort, including activities 
industrial effort, including activities 
that aim at the coordination of the 
that aim at the coordination of the 
that aim at the coordination of the 
 
119 
 
sourcing or reservation of raw 
sourcing or reservation of raw 
sourcing or reservation  
materials and components insofar 
materials and components insofar 
of raw materials and components 
the latter are used as direct input for 
the latter are used as direct input for 
insofar the latter are used as direct 
the production of relevant defence 
the production of relevant defence 
input for the production of relevant 
products, as well as production 
products, as well as production 
defence products, as well as 
capacities and at the coordination of 
capacities and at the coordination of 
production capacities and at the  
production plans; 
production plans; 
coordination of production plans; 
 
 
 
  Article 8(3), point (c) 
 
 
 
 
 
(c)  the building-up and making 
(c)  the building-up and making 
(c)  the building-up and making 
 
available of reserved surge 
available of reserved surge 
available of reserved surge 
manufacturing capacities of 
manufacturing capacities of 
manufacturing capacities of  
relevant-defence products, raw 
relevant-defence products, raw 
relevant-defence products, raw 
materials and components thereof, 
materials and components thereof, 
materials and components thereof, 
 
120 
 
insofar the latter are used as direct 
insofar the latter are used as direct 
insofar the latter are used as direct 
input for the production of relevant 
input for the production of relevant 
input for the production of relevant 
defence products, in accordance with  defence products, in accordance with  defence products, in  
ordered or planned production 
ordered or planned production 
accordance with ordered or planned 
volumes; 
volumes; 
production volumes; 
 
 
 
  Article 8(3), point (d) 
 
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on establishing the Act in Support of Ammunition Production   2023/0140(COD)   22‐06‐2023 at 18h43    62/112 

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Commission Proposal 
EP Mandate 
Council Mandate 
Draft Agreement 
 
 
 
 
 
(d)  the testing and, as appropriate, 
(d)  the testing and, as appropriate, 
(d)  the testing, including the 
 
reconditioning certification, as 
reconditioning certification, as 
necessary infrastructure, and, as 
appropriate, of relevant defence 
appropriate, of relevant defence 
appropriate, reconditioning 
products with a view to addressing 
products with a view to addressing 
certification, as appropriate, of 
 
121 
 
their obsolescence and making them  their obsolescence and making them  relevant defence products with a 
useable by end users; 
useable by end users; 
view to addressing their 
 
 
obsolescence and making them 
useable by end users; 
 
  Article 8(3), point (e) 
 
 
 
 
 
(e)  the training, reskilling or 
(e)  the training, reskilling or 
(e)  the training, reskilling or 
 
upskilling of personnel in relation to  upskilling of personnel in relation to  upskilling of personnel in relation to 
 
122 
 
the activities referred to in points (a)  the activities referred to in points (a)  the activities referred to in points (a) 
to (d) of this article; 
to (d) of this article; 
to (d) of this article;. 
 
 
 
  Article 8(3), point (f) 
 
 
 
 
 
(f)  the improvement of the access to  (f)  the improvement of the access to 
 
 
finance by relevant economic 
finance by relevant economic 
deleted 
operators active in the production of  operators active in the production of   
or making available the relevant 
or making available the relevant 
defence products, by means of the 
defence products, by means of the 
 
123 
 
offset of any additional cost arising 
offset of any additional cost arising 
specifically from the defence 
specifically from the defence 
industry sector, for investments 
industry sector, for investments 
related to activities described in 
related to activities described in 
points (a) to (e) of this article. 
points (a) to (e) of this article. 
 
 
  Article 8(4) 
 
 
 
 
 
4.  The following actions shall not be  4.  The following actions shall not be  4.  The following actions shall not be   
 
124 
 
eligible for funding under the 
eligible for funding under the 
eligible for funding under the 
Instrument: 
Instrument: 
Instrument: 
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on establishing the Act in Support of Ammunition Production   2023/0140(COD)   22‐06‐2023 at 18h43    63/112 

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Commission Proposal 
EP Mandate 
Council Mandate 
Draft Agreement 
 
 
 
 
  Article 8(4), point (a) 
 
 
 
 
 
(a)  actions related to the production 
(a)  actions related to the production 
(a)  actions related to the production 
 
of goods or delivery of services 
of goods or delivery of services 
of goods or delivery of services 
 
125 
 
which are prohibited by applicable 
which are prohibited by applicable 
which are prohibited by applicable 
international law; 
international law; 
international law; 
 
 
 
  Article 8(4), point (b) 
 
 
 
 
 
(b)  actions related to the production  (b)  actions related to the production  (b)  actions related to the production   
of lethal autonomous weapons 
of lethal autonomous weapons 
of lethal autonomous weapons 
without the possibility for 
without the possibility for 
without the possibility for 
 
126 
meaningful human control over 
meaningful human control over 
meaningful human control over 
 
selection and engagement decisions 
selection and engagement decisions 
selection and engagement decisions  
when carrying out strikes against 
when carrying out strikes against 
when carrying out strikes against 
humans; 
humans; 
humans; 
 
 
 
  Article 8(4), point (c) 
 
 
 
 
 
(c)  actions or parts thereof, that are 
(c)  actions or parts thereof, that are 
(c)  actions or parts thereof, that are 
 
already fully financed from other 
already fully financed from other 
already fully financed from other 
 
127 
 
public or private sources; 
public or private sources; 
public or private  
 
 
sources;. 
 
  Article 8(4), point (d) 
 
 
 
 
 
(d)  actions entailing expenditures 
(d)  actions entailing expenditures 
 
 
 
128 
arising from operations having 
arising from operations having 
deleted 
 
military or defence implications. 
military or defence implications. 
 
 
 
  Article 8(5) 
 
 
129 
 
 
 
 
 
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on establishing the Act in Support of Ammunition Production   2023/0140(COD)   22‐06‐2023 at 18h43    64/112 

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Commission Proposal 
EP Mandate 
Council Mandate 
Draft Agreement 
 
5.  The Commission shall ensure in 
5.  The Commission shall ensure in 
5.  The Commission shall ensure in 
 
concluding agreements with 
concluding agreements with 
concluding agreements with 
individual recipients that the 
individual recipients that the 
individual recipients that the 
instrument only finances activities 
instrument only finances activities 
instrument only finances activities 
which exclusively benefit production  which exclusively benefit production  which exclusively benefit production 
capacities of relevant defence 
capacities of relevant defence 
capacities of relevant defence 
products, or of their components and  products, or of their components and  products, or of their components and 
raw materials insofar as they are 
raw materials insofar as they are 
raw materials insofar as they are 
intended or used wholly for the 
intended or used wholly for the 
intended or used wholly for the 
production of relevant defence 
production of relevant defence 
production of relevant defence 
products. 
products. 
products. 
 
 
 
  Article 9 
 
 
 
 
 
Article 9 
Article 9 
Article 9 
 
 
130 
 
Financing rate 
Financing rate 
Financing rate 
 
 
 
  Article 9(1) 
 
 
 
 
 
1.  The Instrument shall finance up 
1.  The Instrument shall finance up 
1.  The Instrument shall finance up 
 
 
131 
to 40% of the eligible costs of an 
to 40% of the eligible costs of an 
to 40% of the eligible costs of an 
 
eligible action. 
eligible action. 
eligible action. 
 
 
 
  Article 9(2), 2. 
 
 
 
 
 
By way of derogation from 
By way of derogation from 
2.  By way of derogation from 
 
paragraph 1, an action shall be 
paragraph 1, an action shall be 
paragraph 1, an action shall be 
 
132 
eligible for an increased funding rate  eligible for an increased funding rate  eligible for an increased funding rate 
 
of 10 additional percentage points 
of 10 additional percentage points 
of 10 additional percentage points 
for each of the following criteria: 
for each of the following criteria: 
for each of the following criteria: 
 
 
 
  Article 9(2), 2., point (a) 
 
 
 
 
 
 
133 
 
(a)  where applicants demonstrate a 
(a)  where applicants demonstrate a 
(a)  where applicants demonstrate a 
 
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on establishing the Act in Support of Ammunition Production   2023/0140(COD)   22‐06‐2023 at 18h43    65/112 

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Commission Proposal 
EP Mandate 
Council Mandate 
Draft Agreement 
 
contribution to the creation of new 
contribution to the creation of new 
contribution to the creation of new 
cross-border cooperation between 
cross-border cooperation between 
cross-border cooperation between  
legal entities established in Member 
legal entities established in Member 
legal entities established in Member 
States or associated countries, as 
States or associated countries, as 
States or associated countries, as 
described in article 10(4); 
described in article 10(4); 
described in  
 
 
article 10(4); 
 
  Article 9(2), 2., point (b) 
 
 
 
 
 
(b)  where applicants commit that 
(b)  where applicants commit that 
(b)  where applicants commit that 
 
they will prioritize for the duration 
they will prioritize for the duration 
they will prioritize for the duration 
of the action orders stemming from 
of the action orders stemming from 
of the action orders stemming from 
the common procurement of relevant  the common procurement of relevant  the common procurement of relevant 
defence products by at least three 
defence products by at least three 
defence products by at least three 
Member States or associated 
Member States or associated 
Member States or associated 
countries or from the procurement of  countries or from the procurement of  countries or from the procurement of 
relevant defence products from at 
relevant defence products from at 
relevant defence products from at 
 
134 
least one Member State of relevant 
least one Member State of relevant 
least one Member State of relevant 
 
defence products which procure for 
defence products which procure for 
defence products which procure for 
the purpose of transferring acquired 
the purpose of transferring acquired 
the purpose of transferring acquired 
relevant defence products to 
relevant defence products to 
relevant defence products to 
Ukraine. This commitment shall 
Ukraine. This commitment shall 
Ukraine. This commitment shall 
apply to any procurement of any 
apply to any procurement of any 
apply to any procurement of any 
product directly or indirectly 
product directly or indirectly 
product directly or indirectly 
benefitting from support under this 
benefitting from support under this 
benefitting from support under this 
Instrument. 
Instrument. 
Instrument. 
 
 
 
  Article 9(2), second subparagraph 
 
 
 
 
 
By way of derogation, support from 
By way of derogation, support from 
 
 
the instrument may cover up to 100 
the instrument may cover up to 100 
deleted 
 
135 
 
% of the eligible costs of an activity 
% of the eligible costs of an activity 
 
referred to article 8(3), point (f). 
referred to article 8(3), point (f). 
 
 
  Article 9(3) 
 
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on establishing the Act in Support of Ammunition Production   2023/0140(COD)   22‐06‐2023 at 18h43    66/112 

---

 
 
Commission Proposal 
EP Mandate 
Council Mandate 
Draft Agreement 
 
 
 
 
 
3.  The recipients shall demonstrate 
3.  The recipients shall demonstrate 
3.  The recipients shall demonstrate 
 
that the costs of an action that are 
that the costs of an action that are 
that the costs of an action that are 
 
136 
not covered by Union support are to 
not covered by Union support are to 
not covered by Union support are to 
 
be covered by other means of 
be covered by other means of 
be covered by other means of 
financing. 
financing. 
financing. 
 
 
 
  Article 10 
 
 
 
 
 
Article 10 
Article 10 
Article 10 
 
 
137 
 
Eligible entities 
Eligible entities 
Eligible entities 
 
 
 
  Article 10(1) 
 
 
 
 
 
1.  Recipients involved in an action 
1.  Recipients involved in an action 
1.  Recipients involved in an action 
 
shall be legal entities, whether public  shall be legal entities, whether public  shall be legal entities, whether public 
or privately owned, established in 
or privately owned, established in 
or privately owned, which are 
the Union or in an associated 
the Union or in an associated 
established and have their 
country. 
country. 
executive management structures 
 
 
in the Union or in an associated 
country. They shall not be subject 
to control by a non-associated 
 
138 
third country or by a non-
 
associated third country entity or, 
alternatively, shall have been 
subject to screening within the 
meaning of Regulation (EU) 
2019/452 and, where necessary, 
mitigation measures, taking into 
account the objectives referred to 
in Article 4. 
 
  Article 10(2) 
 
 
 
 
 
 
139 
 
2.  The infrastructure, facilities, 
2.  The infrastructure, facilities, 
 
 
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on establishing the Act in Support of Ammunition Production   2023/0140(COD)   22‐06‐2023 at 18h43    67/112 

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Commission Proposal 
EP Mandate 
Council Mandate 
Draft Agreement 
 
assets, and resources of the 
assets, and resources of the 
deleted 
recipients involved in an action 
recipients involved in an action 
 
which are used for the purposes of 
which are used for the purposes of 
an action supported by the 
an action supported by the 
Instrument shall be located on the 
Instrument shall be located on the 
territory of a Member State or of an 
territory of a Member State or of an 
associated country for the entire 
associated country for the entire 
duration of an action, and their 
duration of an action, and their 
executive management structures 
executive management structures 
shall be established in the Union or 
shall be established in the Union or 
in an associated country. 
in an associated country. 
 
 
   
 
 
 
 
 
139a 
 
 
 
  Article 10(3) 
 
 
 
 
 
3.  An undertaking established in the  3.  An undertaking established in the  3.  An undertaking established in the   
Union or in an associated country 
Union or in an associated country 
Union or in an associated country 
and controlled by a non-associated 
and controlled by a non-associated 
andthat is controlled by a non-
third country or a non-associated 
third country or a non-associated 
associated third country or a non-
third-country entity shall only be 
third-country entity shall only be 
associated third-country entity and 
eligible to be a recipient involved in 
eligible to be a recipient involved in 
that has not been subject to a 
an action supported by the 
an action supported by the 
screening within the meaning of 
Instrument if guarantees approved 
Instrument if guarantees approved 
Regulation (EU) 2019/452 and, 
by the Member State or the 
by the Member State or the 
where necessary, mitigation 
 
140 
 
associated country in which the 
associated country in which the 
measures, shall only be eligible to 
undertaking is established make 
undertaking is established make 
be a recipient involved in an action 
available to the Commission 
available to the Commission 
supported by the Instrument if 
guarantees in accordance with its 
guarantees in accordance with its 
guarantees approved by the Member 
national procedures, ensuring that 
national procedures, ensuring that 
State or the associated country in 
the involvement in an action of such  the involvement in an action of such  which the undertaking is established 
a undertaking would not contravene 
a undertaking would not contravene 
makeare made available to the 
the security and defence interests of 
the security and defence interests of 
Commission guarantees in 
the Union and its Member States as 
the Union and its Member States as 
accordance with its national 
established in the framework of the 
established in the framework of the 
procedures, ensuring. The 
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on establishing the Act in Support of Ammunition Production   2023/0140(COD)   22‐06‐2023 at 18h43    68/112 

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Commission Proposal 
EP Mandate 
Council Mandate 
Draft Agreement 
 
CFSP pursuant to Title V of the 
CFSP pursuant to Title V of the 
guarantees shall ensuringe that the 
TEU, or the objectives set out in 
TEU, or the objectives set out in 
involvement in an action of such a 
Article 4 of this Regulation. The 
Article 4 of this Regulation. The 
undertaking would not contravene 
guarantees shall in particular 
guarantees shall in particular 
the security and defence interests of 
substantiate that, for the purposes of 
substantiate that, for the purposes of 
the Union and its Member States as 
an action, measures are in place to 
an action, measures are in place to 
established in the framework of the 
ensure that: 
ensure that: 
CFSP pursuant to Title V of the 
 
 
TEU, or the objectives set out in 
Article 4 of this Regulation. The 
guarantees shall in particular 
substantiate that, for the purposes of 
an action, measures are in place to 
ensure that: 
 
  Article 10(3), point (a) 
 
 
 
 
 
(a)  the recipient is able to carry out 
(a)  the recipient is able to carry out 
(a)  the recipient is able to carry out 
 
the action and to deliver results 
the action and to deliver results 
the action and to deliver results 
without any restrictions concerning 
without any restrictions concerning 
without any restrictions concerning 
its infrastructure, facilities, assets, 
its infrastructure, facilities, assets, 
its infrastructure, facilities, assets, 
 
141 
resources, intellectual property or 
resources, intellectual property or 
resources, intellectual property or 
 
knowhow needed for the purposes of  knowhow needed for the purposes of  knowhow needed for the purposes of 
the action, or that undermines its 
the action, or that undermines its 
the action, or that undermines its 
capabilities and standards necessary 
capabilities and standards necessary 
capabilities and standards necessary 
to carry out the action; 
to carry out the action; 
to carry out the action;  
 
 
 
  Article 10(3), point (b) 
 
 
 
 
 
(b)  the products being produced by 
(b)  the products being produced by 
 
 
undertakings having benefitted from  undertakings having benefitted from 
deleted 
the Instrument financial support are 
the Instrument financial support are 
 
 
142 
 
not subject to a restriction by a non-
not subject to a restriction by a non-
associated third country or a non-
associated third country or a non-
associated third country entity; and 
associated third country entity; and 
 
 
  Article 10(3), point (c) 
 
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on establishing the Act in Support of Ammunition Production   2023/0140(COD)   22‐06‐2023 at 18h43    69/112 

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Commission Proposal 
EP Mandate 
Council Mandate 
Draft Agreement 
 
 
 
 
 
(c)  access by a non-associated third 
(c)  access by a non-associated third 
(c)  access by a non-associated third 
 
country or by a non-associated third-
country or by a non-associated third-
country or by a non-associated third-
country entity to sensitive or 
country entity to sensitive or 
country entity to sensitive or 
classified information relating to the  classified information relating to the  classified information relating to the 
action is prevented and the 
action is prevented and the 
action is prevented and the 
 
143 
 
employees or other persons involved  employees or other persons involved  employees or other persons involved 
in the action have national security 
in the action have national security 
in the action have national security 
clearance issued by a Member State 
clearance issued by a Member State 
clearance issued by a Member State 
or an associated country, where 
or an associated country, where 
or an associated country, where 
appropriate. 
appropriate. 
appropriate. 
 
 
 
  Article 10(4) 
 
 
 
 
 
4.  If considered to be appropriate by  4.  If considered to be appropriate by  4.  If considered to be appropriate by   
the Member State or the associated 
the Member State or the associated 
the Member State or the associated 
 
144 
country in which the undertaking is 
country in which the undertaking is 
country in which the undertaking is 
 
established, additional guarantees 
established, additional guarantees 
established, additional guarantees 
may be provided. 
may be provided. 
may be provided. 
 
 
 
  Article 10(5) 
 
 
 
 
 
5.  The Commission shall inform the  5.  The Commission shall inform the  5.  Member States shall provide to   
committee referred to in Article 22 
committee referred to in Article 22 
the Commission a notification on 
of any undertaking considered to be 
of any undertaking considered to be 
the mitigation measures applied 
eligible in accordance with 
eligible in accordance with 
within the meaning of Regulation 
paragraph 3. 
paragraph 3. 
(EU) 2019/452 referred to in 
 
 
paragraph 1 or the the guarantees 
 
145 
referred to in paragraph 3. 
 
Further information on the 
mitigation measures applied or the 
guarantees shall be made available 
to the Commission upon request. 
The Commission shall inform the 
committee referred to in Article 22 
of any undertaking considered to be 
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on establishing the Act in Support of Ammunition Production   2023/0140(COD)   22‐06‐2023 at 18h43    70/112 

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Commission Proposal 
EP Mandate 
Council Mandate 
Draft Agreement 
 
eligiblenotification provided in 
accordance with this paragraph. 3. 
 
  Article 10(5a) 
 
 
 
5a.  The infrastructure, facilities, 
assets, and resources of the 
recipients involved in an action 
which are used for the purposes of 
 
145a 
 
 
an action supported by the 
 
Instrument shall be located on the 
territory of a Member State or of 
an associated country for the 
entire duration of an action. 
 
  Article 10(5b) 
 
 
 
5b. The Instrument shall not 
financially support the ramp-up of 
production capacities for relevant 
defence products that are subject 
 
145b 
 
 
 
to a restriction by a non-associated 
third country or a non-associated 
third country entity that limits 
Member States’ ability to use it. 
 
  Article 11 
 
 
 
 
 
Article 11 
Article 11 
Article 11 
 
 
146 
 
Award criteria  
Award criteria  
Award criteria  
 
 
 
  Article 11, first paragraph 
 
 
 
 
 
 
147 
 
Each proposal shall be assessed on 
Each proposal shall be assessed on 
Each proposal shall be assessed on 
 
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on establishing the Act in Support of Ammunition Production   2023/0140(COD)   22‐06‐2023 at 18h43    71/112 

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Commission Proposal 
EP Mandate 
Council Mandate 
Draft Agreement 
 
the basis of one or more of the 
the basis of one or more of the 
the basis of one or more of the 
following criteria measuring the 
following criteria measuring the 
following criteria measuring the 
contribution of the relevant actions 
contribution of the relevant actions 
contribution of the relevant actions 
to the industrial reinforcement 
to the industrial reinforcement 
to the industrial reinforcement 
sought to foster the efficiency and 
sought to foster the efficiency and 
sought to foster the efficiency and 
overall competitiveness of the 
overall competitiveness of the 
overall competitiveness of the 
EDTIB, in respect to the relevant 
EDTIB, in respect to the relevant 
EDTIB throughout the Union, in 
defence products: 
defence products: 
respect to the relevant defence 
 
 
products: 
 
  Article 11, first paragraph, point (1) ‐ Option a): keeping paraghraphs 1 and 1a separate 
 
 
 
 
 
(1)  Increase in production capacity 
(1)  Increase in production capacity 
(1)  Increase in production capacity 
 
in the Union: the contribution of the 
in the Union: the contribution of the 
in the Union: the contribution of the 
action, in relation to the relevant 
action, in relation to the relevant 
action, in relation to the relevant 
defence products, to the increase, 
defence products, to the increase, 
defence products, tocreation of new 
ramp-up, or reservation of the 
ramp-up, or reservation of the 
manufacturing capacities or the 
 
148 
manufacturing capacities, their 
manufacturing capacities, their 
increase, ramp-up, modernisation 
 
modernisation or the reskilling and 
modernisation or the reskilling and 
or reservation of the manufacturing 
upskilling of the related workforce; 
upskilling of the related workforce; 
capacities, their 
 
 
modernisationexisting ones or the 
reskilling and upskilling of the 
related workforce; 
 
  Article 11, first paragraph, point (2) 
 
 
 
 
 
(2)  Reduction of delivery lead time:  (2)  Reduction of delivery lead time:  (2)  Reduction of delivery lead time:   
the contribution of the action to the 
the contribution of the action to the 
the contribution of the action to the 
timely satisfaction of the demand 
timely satisfaction of the demand 
timely satisfaction of the demand 
 
149 
expressed through procurement in 
expressed through procurement in 
expressed through procurement in 
 
terms of reduced delivery lead times,  terms of reduced delivery lead times,  terms of reduced delivery lead times, 
including via order reprioritization 
including via order reprioritization 
including via order reprioritization 
mechanisms; 
mechanisms; 
mechanisms; 
 
 
 
  Article 11, first paragraph, point (3) 
 
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on establishing the Act in Support of Ammunition Production   2023/0140(COD)   22‐06‐2023 at 18h43    72/112 

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Commission Proposal 
EP Mandate 
Council Mandate 
Draft Agreement 
 
 
 
 
 
(3)  Elimination of sourcing and 
(3)  Elimination of sourcing and 
(3)  Elimination of sourcing and 
 
production bottlenecks: the 
production bottlenecks: the 
production bottlenecks: the 
contribution of the action to the swift  contribution of the action to the swift  contribution of the action to the swift 
identification and rapid and lasting 
identification and rapid and lasting 
identification and rapid and lasting 
 
150 
 
elimination of any sourcing (raw 
elimination of any sourcing (raw 
elimination of any sourcing (raw 
material and any other input) or 
material and any other input) or 
material and any other input) or 
production (manufacturing ability) 
production (manufacturing ability) 
production (manufacturing ability) 
bottlenecks; 
bottlenecks; 
bottlenecks; 
 
 
 
  Article 11, first paragraph, point (4) 
 
 
 
 
 
(4)  Resilience through cross-border 
(4)  Resilience through cross-border 
(4)  Resilience through cross-border 
 
cooperation: the contribution of the 
cooperation: the contribution of the 
cooperation: the contribution of the 
action to the development and 
action to the development and 
action to the development and 
operationalisation of cross-border 
operationalisation of cross-border 
operationalisation of cross-border 
cooperation between undertakings 
cooperation between undertakings 
cooperation between undertakings 
established in different Member 
established in different Member 
established in different Member 
 
151 
 
States or associated countries, 
States or associated countries, 
States or associated countries, 
involving in particular, to a 
involving in particular, to a 
involving in particular, to a 
significant extent, SMEs or mid-caps  significant extent, SMEs or mid-caps  significant extent, SMEs or mid-caps 
as recipients, subcontractors or as 
as recipients, subcontractors or as 
as recipients, subcontractors or as 
other undertakings in the supply 
other undertakings in the supply 
other undertakings  
chain; 
chain; 
in the supply chain; 
 
 
 
  Article 11, first paragraph, point (5) 
 
 
 
 
 
(5)  The demonstration by the 
(5)  The demonstration by the 
(5)  The demonstration by the 
 
applicants of the link between the 
applicants of the link between the 
applicants of the link between the 
action and newly placed orders 
action and newly placed orders 
action and newly placed  
stemming from the joint 
stemming from the joint 
orders stemming from the joint 
 
152 
 
procurement of relevant defence 
procurement of relevant defence 
procurement of relevant defence 
products by at least three Member 
products by at least three Member 
products by at least three Member 
States or associated countries 
States or associated countries 
States or associated countries 
especially if done in a EU 
especially if done in a EU 
especially if done in a EU 
framework; 
framework; 
framework; 
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on establishing the Act in Support of Ammunition Production   2023/0140(COD)   22‐06‐2023 at 18h43    73/112 

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Commission Proposal 
EP Mandate 
Council Mandate 
Draft Agreement 
 
 
 
 
  Article 11, first paragraph, point (5a), first subparagraph 
 
 
 
 
 
(6)  The quality of the 
(6)  The quality of the 
(6)  The quality of the 
 
implementation plan of the action, 
implementation plan of the action, 
implementation plan of the action, 
 
153 
 
including in terms of its processes 
including in terms of its processes 
including in terms of its processes 
and monitoring. 
and monitoring. 
and monitoring. 
 
 
 
  Article 11, first paragraph, point (5a), second subparagraph 
 
 
 
 
 
The Commission shall, by means 
of implementing acts, award the 
funding under this regulation. 
 
153a 
 
Those implementing acts shall be 
 
adopted in accordance with the 
examination procedure referred to 
in Article 22(3). 
 
  Article 12 
 
 
 
 
 
Article 12 
Article 12 
Article 12 
 
 
154 
 
Work Programme  
Work Programme  
Work Programme  
 
 
 
  Article 12(1) 
 
 
 
 
 
1.  The Instrument shall be 
1.  The Instrument shall be 
1.  The Instrument shall be 
 
implemented through a single work 
implemented through a single work 
implemented through a single work 
programme as referred to in Article 
programme as referred to in Article 
programme as referred to in Article 
110 of Regulation (EU, Euratom) 
110 of Regulation (EU, Euratom) 
110 of Regulation (EU, Euratom) 
 
155 
 
2018/1046. Work programmes shall 
2018/1046. Work programmes shall 
2018/1046. The wWork 
set out, where applicable, the overall  set out, where applicable, the overall  programmes shall set out, where 
amount reserved for blending 
amount reserved for blending 
applicable, the overall amount 
operations. 
operations. 
reserved for blending operations. 
 
 
 
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on establishing the Act in Support of Ammunition Production   2023/0140(COD)   22‐06‐2023 at 18h43    74/112 

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Commission Proposal 
EP Mandate 
Council Mandate 
Draft Agreement 
 
  Article 12(2) 
 
 
 
 
 
2.  The Commission shall, by means  2.  The Commission shall, by means  2.  The Commission shall, by means   
of an implementing act, adopt the 
of an implementing act, adopt the 
of an implementing act, adopt the 
work programme referred to in 
work programme referred to in 
work programme referred to in 
 
156 
paragraph 1. The implementing act 
paragraph 1. The implementing act 
paragraph 1. The implementing act 
 
shall be adopted in accordance with 
shall be adopted in accordance with 
shall be adopted in accordance with 
the examination procedure referred 
the examination procedure referred 
the examination procedure referred 
to in Article 22(3). 
to in Article 22(3). 
to in Article 22(3). 
 
 
 
  Article 12(3) 
 
 
 
 
 
3.  The work programme shall set 
3.  The work programme shall set 
3.  The work programme shall set 
 
out the funding priorities in line with  out the funding priorities in line with  out the funding priorities in line with 
the mapping referred to in Article 
the mapping referred to in Article 
the mapping referred to in Article 
 
157 
 
13(1) and taking into account the 
13(1) and taking into account the 
13(1) and, taking into accountnote 
work of the Defence Joint 
work of the Defence Joint 
of the work of the Defence Joint 
Procurement Task Force. 
Procurement Task Force. 
Procurement Task Force. 
 
 
 
  Chapter III 
 
 
 
 
 
Chapter III 
Chapter III 
 
 
 
158 
 
Identification and Mapping 
Identification and Mapping 
deleted 
 
 
 
  Article 13 
 
 
 
 
 
Article 13 
Article 13 
 
 
 
159 
Identification of needs, mapping and  Identification of needs, mapping and 
deleted 
 
monitoring of capacities  
monitoring of capacities  
 
 
 
  Article 13(1), first subparagraph 
 
 
 
 
 
 
160 
The Commission, based on the 
The Commission, based on the 
 
 
 
cooperative work with the EEAS 
cooperative work with the EEAS 
deleted 
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on establishing the Act in Support of Ammunition Production   2023/0140(COD)   22‐06‐2023 at 18h43    75/112 

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Commission Proposal 
EP Mandate 
Council Mandate 
Draft Agreement 
 
and the EDA in the context of the 
and the EDA in the context of the 
 
Defence Joint Procurement Task 
Defence Joint Procurement Task 
Force, shall set up and maintain a 
Force, shall set up and maintain a 
mapping of relevant undertakings 
mapping of relevant undertakings 
established in the Union that operate  established in the Union that operate 
along the supply chains of the 
along the supply chains of the 
relevant defence products, including  relevant defence products, including 
for instance, the type and 
for instance, the type and 
specifications of the relevant defence  specifications of the relevant defence 
products produced, their related 
products produced, their related 
production capacity and their 
production capacity and their 
position in the supply chain. 
position in the supply chain. 
 
 
  Article 13(1), second subparagraph 
 
 
 
 
 
Based on this mapping, the 
Based on this mapping, the 
 
 
Commission shall, in close 
Commission shall, in close 
deleted 
cooperation with the identified 
cooperation with the identified 
 
undertakings, continuously monitor 
undertakings, continuously monitor 
 
161 
their production capacity and their 
their production capacity and their 
 
supply chains and assess their 
supply chains and assess their 
overall ability to respond to the 
overall ability to respond to the 
expected evolution of the market 
expected evolution of the market 
demand. 
demand. 
 
 
  Article 13(2) 
 
 
 
 
 
2.  The Commission shall present to,  2.  The Commission shall present to, 
 
 
and regularly discuss with, the 
and regularly discuss with, the 
deleted 
Committee as referred to in Article 
Committee as referred to in Article 
 
22, the results of the mapping or its 
22, the results of the mapping or its 
 
162 
 
update, of the monitoring of the 
update, of the monitoring of the 
supply chains, and its assessment of 
supply chains, and its assessment of 
the overall ability of the identified 
the overall ability of the identified 
undertakings to respond to the 
undertakings to respond to the 
expected evolution of the market 
expected evolution of the market 
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on establishing the Act in Support of Ammunition Production   2023/0140(COD)   22‐06‐2023 at 18h43    76/112 

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Commission Proposal 
EP Mandate 
Council Mandate 
Draft Agreement 
 
demand. In doing so, the 
demand. In doing so, the 
Commission will take into account 
Commission will take into account 
the work carried out in the context of  the work carried out in the context of 
the regular meetings of the National 
the regular meetings of the National 
Armaments Directors with the 
Armaments Directors with the 
Defence Joint Procurement Task 
Defence Joint Procurement Task 
Force. 
Force. 
 
 
  Article 13(3) 
 
 
 
 
 
3.  Based on information gathered 
3.  Based on information gathered 
 
 
pursuant to paragraph 1 and taking 
pursuant to paragraph 1 and taking 
deleted 
due account of the discussion held 
due account of the discussion held 
 
under paragraph 2, the Commission 
under paragraph 2, the Commission 
shall by means of implementing acts,  shall by means of implementing acts, 
draw up and regularly update a list 
draw up and regularly update a list 
of supply-critical defence products. 
of supply-critical defence products. 
Those implementing acts shall be 
Those implementing acts shall be 
adopted in accordance with the 
adopted in accordance with the 
 
163 
 
examination procedure referred to in  examination procedure referred to in 
Article 22(3). On duly justified 
Article 22(3). On duly justified 
imperative grounds of urgency in 
imperative grounds of urgency in 
relation with the supply crisis, the 
relation with the supply crisis, the 
Commission shall adopt 
Commission shall adopt 
immediately applicable 
immediately applicable 
implementing acts in accordance 
implementing acts in accordance 
with the procedure referred to in 
with the procedure referred to in 
Article 22(4). 
Article 22(4). 
 
 
  Article 13(4) 
 
 
 
 
 
4.  In agreement with the Member 
4.  In agreement with the Member 
 
 
State where they are established, the  State where they are established, the 
deleted 
 
164 
 
Commission may request from the 
Commission may request from the 
 
undertakings that provide supply-
undertakings that provide supply-
critical defence products and in 
critical defence products and in 
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on establishing the Act in Support of Ammunition Production   2023/0140(COD)   22‐06‐2023 at 18h43    77/112 

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Commission Proposal 
EP Mandate 
Council Mandate 
Draft Agreement 
 
relation to those, to receive, within 
relation to those, to receive, within 
five working days, detailed 
five working days, detailed 
information on: 
information on: 
 
 
  Article 13(4), point (a) 
 
 
 
 
 
(a)  the total production capacity in 
(a)  the total production capacity in 
 
 
 
165 
the relevant supply-critical defence 
the relevant supply-critical defence 
deleted 
 
products; 
products; 
 
 
 
  Article 13(4), point (b) 
 
 
 
 
 
(b)  the existing and expected 
(b)  the existing and expected 
 
 
 
166 
 
variations in stocks of such products;  variations in stocks of such products; 
deleted 
 
 
 
  Article 13(4), point (c) 
 
 
 
 
 
(c)  any existing schedule of the 
(c)  any existing schedule of the 
 
 
expected production output for the 
expected production output for the 
deleted 
 
167 
following three months for each 
following three months for each 
 
 
production facility located in the 
production facility located in the 
union or elsewhere; 
union or elsewhere; 
 
 
  Article 13(4), point (d) 
 
 
 
 
 
(d)  any additional information 
(d)  any additional information 
 
 
relevant to ensure the timely 
relevant to ensure the timely 
deleted 
 
168 
 
availability of supply-critical 
availability of supply-critical 
 
defence products. 
defence products. 
 
 
  Article 13(5) 
 
 
 
 
 
 
169 
 
5.  Without prejudice to national 
5.  Without prejudice to national 
 
 
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on establishing the Act in Support of Ammunition Production   2023/0140(COD)   22‐06‐2023 at 18h43    78/112 

---

 
 
Commission Proposal 
EP Mandate 
Council Mandate 
Draft Agreement 
 
security interests, Member States 
security interests, Member States 
deleted 
shall, where appropriate, provide the  shall, where appropriate, provide the   
Commission with additional 
Commission with additional 
information needed to achieve the 
information needed to achieve the 
objectives of this Regulation. 
objectives of this Regulation. 
 
 
  Article 13(6) 
 
 
 
 
 
6.  Without prejudice to national 
6.  Without prejudice to national 
 
 
security interests and the protection 
security interests and the protection 
deleted 
of commercially confidential 
of commercially confidential 
 
information resulting from 
information resulting from 
agreements entered into by Member 
agreements entered into by Member 
States, where a Member State 
States, where a Member State 
 
170 
intends to adopt at national level 
intends to adopt at national level 
 
measures for the procurement, 
measures for the procurement, 
purchase or manufacturing of 
purchase or manufacturing of 
supply-critical defence products 
supply-critical defence products 
from the list referred in paragraph 3,  from the list referred in paragraph 3, 
it shall inform the Commission in a 
it shall inform the Commission in a 
timely manner. 
timely manner. 
 
 
  Chapter IV 
 
 
 
 
 
Chapter IV 
Chapter IV 
Chapter IV 
 
 
171 
Security of Supply 
Security of Supply 
Security of SupplySECURITY OF 
 
 
 
SUPPLY 
 
  Article 14 
 
 
 
 
 
Article 14 
Article 14 
 
 
 
172 
 
Priority Rated Orders 
Priority Rated Orders 
deleted 
 
 
 
  Article 14(1) 
 
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on establishing the Act in Support of Ammunition Production   2023/0140(COD)   22‐06‐2023 at 18h43    79/112 

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Commission Proposal 
EP Mandate 
Council Mandate 
Draft Agreement 
 
 
 
 
 
1.  Where at least three Member 
1.  Where at least three Member 
 
 
States, which have entered or are 
States, which have entered or are 
deleted 
considering entering into an 
considering entering into an 
 
agreement to commonly procure 
agreement to commonly procure 
relevant defence products or where a  relevant defence products or where a 
Member State which has procured or  Member State which has procured or 
is considering to procure for the 
is considering to procure for the 
purpose of transferring acquired 
purpose of transferring acquired 
relevant defence products to 
relevant defence products to 
Ukraine, face severe difficulties 
Ukraine, face severe difficulties 
either in the placing of the order or 
either in the placing of the order or 
 
173 
 
in the execution of the contract due 
in the execution of the contract due 
to shortages or serious risks of 
to shortages or serious risks of 
shortages of supply-critical defence 
shortages of supply-critical defence 
products and these difficulties may 
products and these difficulties may 
undermine the security of the Union 
undermine the security of the Union 
and of its Member States, those may  and of its Member States, those may 
ask the Commission to require an 
ask the Commission to require an 
undertaking to accept, or to prioritise  undertaking to accept, or to prioritise 
an order of supply-critical defence 
an order of supply-critical defence 
products (‘priority rated order’), as 
products (‘priority rated order’), as 
defined in paragraph 3 of Article 13.  defined in paragraph 3 of Article 13. 
 
 
  Article 14(2), first subparagraph 
 
 
 
 
 
Upon such request, the Commission 
Upon such request, the Commission 
 
 
may, after the consultation of the 
may, after the consultation of the 
deleted 
Member State of establishment of 
Member State of establishment of 
 
 
174 
the concerned undertaking and with 
the concerned undertaking and with 
 
its agreement, notify the latter of its 
its agreement, notify the latter of its 
intent to impose a priority rated 
intent to impose a priority rated 
order. 
order. 
 
 
  Article 14(2), second subparagraph 
 
 
175 
 
 
 
 
 
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on establishing the Act in Support of Ammunition Production   2023/0140(COD)   22‐06‐2023 at 18h43    80/112 

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Commission Proposal 
EP Mandate 
Council Mandate 
Draft Agreement 
 
The notification of the intent shall 
The notification of the intent shall 
 
 
include information about its legal 
include information about its legal 
deleted 
basis, specify the product, 
basis, specify the product, 
 
specifications and quantities 
specifications and quantities 
concerned and the schedule and 
concerned and the schedule and 
time-limit within which the order 
time-limit within which the order 
would have to be performed, and 
would have to be performed, and 
state the reasons justifying the use of  state the reasons justifying the use of 
the priority rated order. 
the priority rated order. 
 
 
  Article 14(2), third subparagraph 
 
 
 
 
 
From the notification of the intent, 
From the notification of the intent, 
 
 
the undertaking shall reply to the 
the undertaking shall reply to the 
deleted 
Commission, within five working 
Commission, within five working 
 
days and state whether it can accept 
days and state whether it can accept 
or not the request. Where the 
or not the request. Where the 
 
176 
 
urgency of the situation requires it, 
urgency of the situation requires it, 
the Commission may, based on a 
the Commission may, based on a 
justification of such urgency, reduce  justification of such urgency, reduce 
the deadline for the undertaking to 
the deadline for the undertaking to 
reply. 
reply. 
 
 
  Article 14(2), fourth subparagraph 
 
 
 
 
 
Where the undertaking declines the 
Where the undertaking declines the 
 
 
request, it shall provide the 
request, it shall provide the 
deleted 
Commission with a detailed 
Commission with a detailed 
 
 
177 
 
explanation to the justification 
explanation to the justification 
invoked to decline the intended 
invoked to decline the intended 
request. 
request. 
 
 
  Article 14(2), fifth subparagraph 
 
 
 
 
 
 
178 
 
Where the undertaking accepts the 
Where the undertaking accepts the 
 
 
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on establishing the Act in Support of Ammunition Production   2023/0140(COD)   22‐06‐2023 at 18h43    81/112 

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Commission Proposal 
EP Mandate 
Council Mandate 
Draft Agreement 
 
request, the order shall be deemed 
request, the order shall be deemed 
deleted 
accepted under the conditions 
accepted under the conditions 
 
described in the Commission’s 
described in the Commission’s 
request in accordance with the 
request in accordance with the 
meaning of paragraph 1 and the 
meaning of paragraph 1 and the 
undertaking shall be legally bound. 
undertaking shall be legally bound. 
 
 
  Article 14(3) 
 
 
 
 
 
3.  Where the notified undertaking 
3.  Where the notified undertaking 
 
 
declines the request, the order shall 
declines the request, the order shall 
deleted 
be deemed refused. Having due 
be deemed refused. Having due 
 
regard to the justifications invoked 
regard to the justifications invoked 
 
179 
 
by the undertaking, the Commission  by the undertaking, the Commission 
may, in agreement with the Member  may, in agreement with the Member 
State of establishment of that 
State of establishment of that 
undertaking: 
undertaking: 
 
 
  Article 14(3), point (a) 
 
 
 
 
 
(a)  abstain from pursuing the 
(a)  abstain from pursuing the 
 
 
 
180 
 
request; 
request; 
deleted 
 
 
 
  Article 14(3), point (b) 
 
 
 
 
 
(b)  adopt an Implementing Act 
(b)  adopt an Implementing Act 
 
 
obliging the concerned undertakings  obliging the concerned undertakings 
deleted 
 
181 
to accept or perform the priority 
to accept or perform the priority 
 
 
rated order, at a fair and reasonable 
rated order, at a fair and reasonable 
price. 
price. 
 
 
  Article 14(4), first subparagraph 
 
 
 
 
 
 
182 
 
The Commission shall take into 
The Commission shall take into 
 
 
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on establishing the Act in Support of Ammunition Production   2023/0140(COD)   22‐06‐2023 at 18h43    82/112 

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Commission Proposal 
EP Mandate 
Council Mandate 
Draft Agreement 
 
account the objections raised by the 
account the objections raised by the 
deleted 
undertaking under paragraph 2 and 
undertaking under paragraph 2 and 
 
state the reasons why, in line with 
state the reasons why, in line with 
the proportionality principle and the 
the proportionality principle and the 
fundamental rights of the 
fundamental rights of the 
undertaking under the Charter of 
undertaking under the Charter of 
Fundamental rights of the Union, it 
Fundamental rights of the Union, it 
was necessary to adopt it in light of 
was necessary to adopt it in light of 
the circumstances described in 
the circumstances described in 
paragraph 1. 
paragraph 1. 
 
 
  Article 14(4), second subparagraph 
 
 
 
 
 
The Commission shall state in the 
The Commission shall state in the 
 
 
Implementing Act the legal basis of 
Implementing Act the legal basis of 
deleted 
the priority rated order, fix the time-
the priority rated order, fix the time-
 
limit within which the order is to be 
limit within which the order is to be 
performed, and set out the product, 
performed, and set out the product, 
 
183 
specifications, volume, and any 
specifications, volume, and any 
 
other parameter to be complied. The  other parameter to be complied. The 
Commission shall also state the 
Commission shall also state the 
penalties provided for in Article 15 
penalties provided for in Article 15 
for non-compliance with the 
for non-compliance with the 
obligation. 
obligation. 
 
 
  Article 14(5) 
 
 
 
 
 
5.  Where the undertaking has 
5.  Where the undertaking has 
 
 
accepted the request of the 
accepted the request of the 
deleted 
Commission under paragraph 2 or 
Commission under paragraph 2 or 
 
 
184 
where the Commission has adopted 
where the Commission has adopted 
 
an Implementing Act under 
an Implementing Act under 
paragraph 3, the priority rated order 
paragraph 3, the priority rated order 
shall: 
shall: 
 
 
  Article 14(5), point (a) 
 
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on establishing the Act in Support of Ammunition Production   2023/0140(COD)   22‐06‐2023 at 18h43    83/112 

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Commission Proposal 
EP Mandate 
Council Mandate 
Draft Agreement 
 
 
 
 
 
(a)  be placed at a fair and 
(a)  be placed at a fair and 
 
 
 
185 
 
reasonable price; 
reasonable price; 
deleted 
 
 
 
  Article 14(5), point (b) 
 
 
 
 
 
(b)  take precedence over any 
(b)  take precedence over any 
 
 
 
186 
performance obligation under 
performance obligation under 
deleted 
 
private or public law; 
private or public law; 
 
 
 
  Article 14(6), first subparagraph 
 
 
 
 
 
Where the undertaking has agreed to  Where the undertaking has agreed to 
 
 
the request of the Commission under  the request of the Commission under 
deleted 
paragraph 2 or where the 
paragraph 2 or where the 
 
Commission has adopted an 
Commission has adopted an 
Implementing Act under paragraph 
Implementing Act under paragraph 
 
187 
 
3, the undertaking may request the 
3, the undertaking may request the 
Commission to review the priority 
Commission to review the priority 
rated order where it considers it to 
rated order where it considers it to 
be duly justified based on one of the  be duly justified based on one of the 
following grounds: 
following grounds: 
 
 
  Article 14(6), first subparagraph, point (a) 
 
 
 
 
 
(a)  if the undertaking is unable to 
(a)  if the undertaking is unable to 
 
 
perform the priority rated order on 
perform the priority rated order on 
deleted 
account of insufficient production 
account of insufficient production 
 
 
188 
 
capability or production capacity, 
capability or production capacity, 
even under preferential treatment of 
even under preferential treatment of 
the order; 
the order; 
 
 
  Article 14(6), first subparagraph, point (b) 
 
 
189 
 
 
 
 
 
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on establishing the Act in Support of Ammunition Production   2023/0140(COD)   22‐06‐2023 at 18h43    84/112 

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Commission Proposal 
EP Mandate 
Council Mandate 
Draft Agreement 
 
(b)  if acceptance of the order would  (b)  if acceptance of the order would 
 
 
place an unreasonable economic 
place an unreasonable economic 
deleted 
burden and entail particular hardship  burden and entail particular hardship   
for the undertaking. 
for the undertaking. 
 
 
  Article 14(6), second subparagraph 
 
 
 
 
 
The undertaking shall provide all 
The undertaking shall provide all 
 
 
relevant and substantiated 
relevant and substantiated 
deleted 
 
190 
information to allow the 
information to allow the 
 
 
Commission to assess the merits of 
Commission to assess the merits of 
the objections raised. 
the objections raised. 
 
 
  Article 14(6), third subparagraph 
 
 
 
 
 
Based on the examination of the 
Based on the examination of the 
 
 
reasons and evidence provided by 
reasons and evidence provided by 
deleted 
the undertaking, the Commission 
the undertaking, the Commission 
 
may, after consulting the Member 
may, after consulting the Member 
 
191 
State concerned, amend its 
State concerned, amend its 
 
implementing Act to release, 
implementing Act to release, 
partially or in totality the 
partially or in totality the 
undertaking concerned from its 
undertaking concerned from its 
obligations under paragraph 2. 
obligations under paragraph 2. 
 
 
  Article 14(7) 
 
 
 
 
 
7.  For the purpose of this 
7.  For the purpose of this 
 
 
Regulation, transfers of supply-
Regulation, transfers of supply-
deleted 
critical defence products subject to 
critical defence products subject to 
 
 
192 
the priority rated order may not be 
the priority rated order may not be 
 
considered as sensitive in the 
considered as sensitive in the 
meaning of Article 4 (8) of Directive  meaning of Article 4 (8) of Directive 
2009/43/EC. 
2009/43/EC. 
 
 
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on establishing the Act in Support of Ammunition Production   2023/0140(COD)   22‐06‐2023 at 18h43    85/112 

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Commission Proposal 
EP Mandate 
Council Mandate 
Draft Agreement 
 
  Article 14(8) 
 
 
 
 
 
8.  When an undertaking established  8.  When an undertaking established 
 
 
in the Union is subject to a measure 
in the Union is subject to a measure 
deleted 
of a third country which entails a 
of a third country which entails a 
 
priority rated order, it shall notify 
priority rated order, it shall notify 
 
193 
 
the Commission thereof. The 
the Commission thereof. The 
Commission shall then inform the 
Commission shall then inform the 
Committee of the existence of such 
Committee of the existence of such 
measures. 
measures. 
 
 
  Article 14(9) 
 
 
 
 
 
9.  Where an undertaking accepts or 
9.  Where an undertaking accepts or 
 
 
is obliged to accept and prioritise a 
is obliged to accept and prioritise a 
deleted 
priority rated order in accordance 
priority rated order in accordance 
 
with paragraphs 2 or 3 it shall be 
with paragraphs 2 or 3 it shall be 
shielded from any contractual or 
shielded from any contractual or 
extra-contractual liability in relation 
extra-contractual liability in relation 
 
194 
 
to comply with the priority rated 
to comply with the priority rated 
orders. The liability shall be 
orders. The liability shall be 
excluded only to the extent the 
excluded only to the extent the 
violation of contractual obligations 
violation of contractual obligations 
was necessary for compliance with 
was necessary for compliance with 
the mandated prioritisation. 
the mandated prioritisation. 
 
 
  Article 14(10) 
 
 
 
 
 
10.  The Commission shall adopt an 
10.  The Commission shall adopt an 
 
 
implementing act laying down the 
implementing act laying down the 
deleted 
 
195 
practical and operational 
practical and operational 
 
 
arrangements for the functioning of 
arrangements for the functioning of 
priority rated orders. 
priority rated orders. 
 
 
  Article 14(11) 
 
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Commission Proposal 
EP Mandate 
Council Mandate 
Draft Agreement 
 
 
 
 
 
11.  The implementing acts referred 
11.  The implementing acts referred 
 
 
to in paragraphs 3 and 10 shall be 
to in paragraphs 3 and 10 shall be 
deleted 
adopted in accordance with the 
adopted in accordance with the 
 
examination procedure referred to in  examination procedure referred to in 
Article 22 (3). On duly justified 
Article 22 (3). On duly justified 
imperative grounds of urgency in 
imperative grounds of urgency in 
 
196 
 
relation with the supply crisis, the 
relation with the supply crisis, the 
Commission shall adopt 
Commission shall adopt 
immediately applicable 
immediately applicable 
implementing acts in accordance 
implementing acts in accordance 
with the procedure referred to in 
with the procedure referred to in 
Article 22 (4) 
Article 22 (4) 
 
 
  Article 15 
 
 
 
 
 
Article 15 
Article 15 
 
 
 
197 
 
Penalties  
Penalties  
deleted 
 
 
 
  Article 15(1) 
 
 
 
 
 
1.  Where an undertaking, 
1.  Where an undertaking, 
 
 
intentionally or through gross 
intentionally or through gross 
deleted 
negligence, does not comply with an  negligence, does not comply with an   
obligation to prioritise priority rated 
obligation to prioritise priority rated 
 
198 
orders pursuant to Article 14, the 
orders pursuant to Article 14, the 
 
Commission may, by decision, 
Commission may, by decision, 
where deemed necessary and 
where deemed necessary and 
proportionate, impose periodic 
proportionate, impose periodic 
penalty payments. 
penalty payments. 
 
 
  Article 15(2) 
 
 
 
 
 
 
199 
2.  Periodic penalty payments shall 
2.  Periodic penalty payments shall 
 
 
 
not exceed 1.5 % of the average 
not exceed 1.5 % of the average 
deleted 
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on establishing the Act in Support of Ammunition Production   2023/0140(COD)   22‐06‐2023 at 18h43    87/112 

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Commission Proposal 
EP Mandate 
Council Mandate 
Draft Agreement 
 
daily turnover in the preceding 
daily turnover in the preceding 
 
business year for each working day 
business year for each working day 
of non-compliance with the 
of non-compliance with the 
obligation calculated from the date 
obligation calculated from the date 
established in the decision. 
established in the decision. 
 
 
  Article 15(3) 
 
 
 
 
 
3.  In fixing the amount of the 
3.  In fixing the amount of the 
 
 
periodic penalty payment, regard 
periodic penalty payment, regard 
deleted 
shall be had to the nature, gravity 
shall be had to the nature, gravity 
 
 
200 
and duration of the infringement, 
and duration of the infringement, 
 
taking due account of the principles 
taking due account of the principles 
of proportionality and 
of proportionality and 
appropriateness. 
appropriateness. 
 
 
  Article 15(4) 
 
 
 
 
 
4.  Where the undertaking has 
4.  Where the undertaking has 
 
 
satisfied the obligation which the 
satisfied the obligation which the 
deleted 
periodic penalty payment was 
periodic penalty payment was 
 
intended to enforce, the Commission  intended to enforce, the Commission 
 
201 
 
may fix the definitive amount of the 
may fix the definitive amount of the 
periodic penalty payment at a figure 
periodic penalty payment at a figure 
lower than that which would arise 
lower than that which would arise 
under the original decision. 
under the original decision. 
 
 
  Article 15(5) 
 
 
 
 
 
5.  The Court of Justice of the 
5.  The Court of Justice of the 
 
 
European Union shall have 
European Union shall have 
deleted 
 
202 
unlimited jurisdiction to review 
unlimited jurisdiction to review 
 
 
decisions whereby the Commission 
decisions whereby the Commission 
has fixed a fine or a periodic penalty  has fixed a fine or a periodic penalty 
payment. It may cancel, reduce or 
payment. It may cancel, reduce or 
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on establishing the Act in Support of Ammunition Production   2023/0140(COD)   22‐06‐2023 at 18h43    88/112 

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Commission Proposal 
EP Mandate 
Council Mandate 
Draft Agreement 
 
increase the fine or periodic penalty 
increase the fine or periodic penalty 
payment imposed. 
payment imposed. 
 
 
  Article 15(6) 
 
 
 
 
 
6.  Time shall begin to run on the 
6.  Time shall begin to run on the 
 
 
day on which the infringement is 
day on which the infringement is 
deleted 
committed. However, in the case of 
committed. However, in the case of 
 
continuing or repeated 
continuing or repeated 
infringements, time shall begin to 
infringements, time shall begin to 
run on the day on which the 
run on the day on which the 
infringement ceases. Any action 
infringement ceases. Any action 
taken by the Commission or the 
taken by the Commission or the 
competent authorities of the Member  competent authorities of the Member 
States for the purposes of ensuring 
States for the purposes of ensuring 
compliance with the provisions of 
compliance with the provisions of 
this Regulation shall interrupt the 
this Regulation shall interrupt the 
limitation period. Each interruption 
limitation period. Each interruption 
 
203 
shall start the time running afresh. 
shall start the time running afresh. 
 
However, the limitation period shall 
However, the limitation period shall 
expire at the latest on the day in 
expire at the latest on the day in 
which a period equal to twice the 
which a period equal to twice the 
limitation period has elapsed without  limitation period has elapsed without 
the Commission having imposed a 
the Commission having imposed a 
periodic penalty payment. That 
periodic penalty payment. That 
period shall be extended by the time 
period shall be extended by the time 
during which the limitation period is  during which the limitation period is 
suspended because the decision of 
suspended because the decision of 
the Commission is the subject of 
the Commission is the subject of 
proceedings pending before the 
proceedings pending before the 
Court of Justice of the European 
Court of Justice of the European 
Union. 
Union. 
 
 
  Article 15(7) 
 
 
 
 
 
 
204 
 
7.  The power of the Commission to 
7.  The power of the Commission to 
 
 
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on establishing the Act in Support of Ammunition Production   2023/0140(COD)   22‐06‐2023 at 18h43    89/112 

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Commission Proposal 
EP Mandate 
Council Mandate 
Draft Agreement 
 
enforce decisions taken pursuant to 
enforce decisions taken pursuant to 
deleted 
this Article shall be subject to a 
this Article shall be subject to a 
 
limitation period of three years. 
limitation period of three years. 
Time shall begin to run on the day 
Time shall begin to run on the day 
on which the decision becomes final.  on which the decision becomes final. 
The limitation period for the 
The limitation period for the 
enforcement of periodic penalties 
enforcement of periodic penalties 
payments shall be interrupted: (a) by  payments shall be interrupted: (a) by 
notification of a decision varying the  notification of a decision varying the 
original amount periodic penalty 
original amount periodic penalty 
payment or refusing an application 
payment or refusing an application 
for variation; (b) by any action of the  for variation; (b) by any action of the 
Commission or of a Member State, 
Commission or of a Member State, 
acting at the request of the 
acting at the request of the 
Commission, designed to enforce 
Commission, designed to enforce 
payment of the fine or periodic 
payment of the fine or periodic 
penalty payment. Each interruption 
penalty payment. Each interruption 
shall start time running afresh. The 
shall start time running afresh. The 
limitation period for the enforcement  limitation period for the enforcement 
of periodic penalty payments shall 
of periodic penalty payments shall 
be suspended for so long as: (a) time  be suspended for so long as: (a) time 
to pay is allowed; (b) enforcement of  to pay is allowed; (b) enforcement of 
payment is suspended pursuant to a 
payment is suspended pursuant to a 
decision of the Court of Justice. 
decision of the Court of Justice. 
 
 
  Article 16 
 
 
 
 
 
Article 16 
Article 16 
 
 
Right to be heard for the imposition 
Right to be heard for the imposition 
deleted 
 
205 
 
of fines or periodic penalty 
of fines or periodic penalty 
 
payments  
payments  
 
 
  Article 16(1) 
 
 
 
 
 
 
206 
1.  Before adopting a decision 
1.  Before adopting a decision 
 
 
 
pursuant to Article 15, the 
pursuant to Article 15, the 
deleted 
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on establishing the Act in Support of Ammunition Production   2023/0140(COD)   22‐06‐2023 at 18h43    90/112 

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Commission Proposal 
EP Mandate 
Council Mandate 
Draft Agreement 
 
Commission shall give the 
Commission shall give the 
 
undertaking concerned the 
undertaking concerned the 
opportunity of being heard on: (a) 
opportunity of being heard on: (a) 
preliminary findings of the 
preliminary findings of the 
Commission, including any matter to  Commission, including any matter to 
which the Commission has taken 
which the Commission has taken 
objections; (b) measures that the 
objections; (b) measures that the 
Commission may intend to take in 
Commission may intend to take in 
view of the preliminary findings 
view of the preliminary findings 
pursuant to point (a) of this 
pursuant to point (a) of this 
paragraph. 
paragraph. 
 
 
  Article 16(2) 
 
 
 
 
 
2.  Undertakings concerned may 
2.  Undertakings concerned may 
 
 
submit their observations to the 
submit their observations to the 
deleted 
Commission’s preliminary findings 
Commission’s preliminary findings 
 
 
207 
within a time limit which shall be 
within a time limit which shall be 
 
fixed by the Commission in its 
fixed by the Commission in its 
preliminary findings and which may  preliminary findings and which may 
not be less than 14 working days. 
not be less than 14 working days. 
 
 
  Article 16(3) 
 
 
 
 
 
3.  The Commission shall base its 
3.  The Commission shall base its 
 
 
decisions only on objections on 
decisions only on objections on 
deleted 
 
208 
 
which undertakings concerned have 
which undertakings concerned have 
 
been able to comment. 
been able to comment. 
 
 
  Article 16(4) 
 
 
 
 
 
4.  The rights of defence of the 
4.  The rights of defence of the 
 
 
 
209 
undertaking concerned shall be fully  undertaking concerned shall be fully 
deleted 
 
respected in any proceedings. The 
respected in any proceedings. The 
 
undertaking shall be entitled to have  undertaking shall be entitled to have 
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Commission Proposal 
EP Mandate 
Council Mandate 
Draft Agreement 
 
access to the Commission's file 
access to the Commission's file 
under the terms of a negotiated 
under the terms of a negotiated 
disclosure, subject to the legitimate 
disclosure, subject to the legitimate 
interest of undertakings in the 
interest of undertakings in the 
protection of their business secrets. 
protection of their business secrets. 
The right of access to the file shall 
The right of access to the file shall 
not extend to confidential 
not extend to confidential 
information and internal documents 
information and internal documents 
of the Commission or the authorities  of the Commission or the authorities 
of the Member States. In particular, 
of the Member States. In particular, 
the right of access shall not extend to  the right of access shall not extend to 
correspondence between the 
correspondence between the 
Commission and the authorities of 
Commission and the authorities of 
the Member States. Nothing in this 
the Member States. Nothing in this 
paragraph shall prevent the 
paragraph shall prevent the 
Commission from disclosing and 
Commission from disclosing and 
using information necessary to prove  using information necessary to prove 
an infringement. 
an infringement. 
 
 
  Article 17 
 
 
 
 
 
Article 17 
Article 17 
Article 17 
 
Acceleration of the permit-granting 
Acceleration of the permit-granting 
Acceleration of the permit-granting 
 
210 
process for the timely availability 
process for the timely availability 
process for the timely availability 
 
and supply of relevant defence 
and supply of relevant defence 
and supply of relevant  
products  
products  
defence products  
 
 
 
  Article 17(1) 
 
 
 
 
 
1.  Member States shall ensure that 
1.  Member States shall ensure that 
1.  Member States shall ensure that 
 
administrative applications related to  administrative applications related to  administrative applications related to 
the planning, construction and 
the planning, construction and 
the planning, construction and 
 
211 
 
operation of production facilities, 
operation of production facilities, 
operation of production facilities, 
intra-EU transfer of inputs as well as  intra-EU transfer of inputs as well as  intra-EU transfer of inputs as well as 
qualification and certification of end  qualification and certification of end  qualification and certification of end 
products are processed in an 
products are processed in an 
products are processed in an 
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on establishing the Act in Support of Ammunition Production   2023/0140(COD)   22‐06‐2023 at 18h43    92/112 

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Commission Proposal 
EP Mandate 
Council Mandate 
Draft Agreement 
 
efficient and timely manner. To that 
efficient and timely manner. To that 
efficient and timely manner. To that 
end, all national authorities 
end, all national authorities 
end, all national authorities 
concerned shall ensure that the most  concerned shall ensure that the most 
concerned shall ensure that the most 
rapid treatment legally possible is 
rapid treatment legally possible is 
rapid treatment legally possible is 
given to these applications. 
given to these applications. 
given to these applications. 
 
 
 
  Article 17(2) 
 
 
 
 
 
2.  Member States shall ensure that 
2.  Member States shall ensure that 
2.  Member States shall strive to 
 
in the planning and permit-granting 
in the planning and permit-granting 
ensure that in the planning and 
process, the construction and 
process, the construction and 
permit-granting process, the 
operation of plants and installations 
operation of plants and installations 
construction and operation of plants 
 
212 
 
for the production of relevant 
for the production of relevant 
and installations for the production 
defence products are given priority 
defence products are given priority 
of relevant defence products are 
when balancing legal interests in the  when balancing legal interests in the  given priority when balancing legal 
individual case. 
individual case. 
interests in the individual case.  
 
 
 
  Article 18 
 
 
 
 
 
Article 18 
Article 18 
Article 18 
 
 
213 
Continuity of production of relevant 
Continuity of production of relevant 
Continuity of production of relevant 
 
defence products  
defence products  
defence products  
 
 
 
  Article 18(1) 
 
 
 
 
 
1.  Member States may decide to use  1.  Member States may decide to use  1.  Member States may decide to use   
or to encourage companies working 
or to encourage companies working 
or to encourage companies working 
in the field of relevant defence 
in the field of relevant defence 
in the field of relevant defence 
products to use derogations provided  products to use derogations provided  products to use derogations provided 
 
214 
for in Article 17(3) of Directive 
for in Article 17(3) of Directive 
for in Article 17(3) of Directive 
 
2003/88/EC in order to allow 
2003/88/EC in order to allow 
2003/88/EC in order to allow 
expansion of working shifts hence 
expansion of working shifts hence 
expansion of working shifts hence 
facilitating continuity of production 
facilitating continuity of production 
facilitating continuity of production 
in the field of relevant defence 
in the field of relevant defence 
in the field of relevant defence 
products, if they deem it necessary 
products, if they deem it necessary 
products, if they deem it necessary 
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on establishing the Act in Support of Ammunition Production   2023/0140(COD)   22‐06‐2023 at 18h43    93/112 

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Commission Proposal 
EP Mandate 
Council Mandate 
Draft Agreement 
 
to achieve the objectives of this 
to achieve the objectives of this 
to achieve the objectives of this 
regulation. 
regulation. 
regulation. 
 
 
 
  Article 18(2) 
 
 
 
 
 
2.  To that end and where prior 
2.  To that end and where prior 
2.  To that end and where prior 
 
authorisation is required, all national  authorisation is required, all national  authorisation is required, all national 
authorities concerned shall ensure 
authorities concerned shall ensure 
authorities concerned  
that the most rapid treatment legally 
that the most rapid treatment legally 
shall ensure that the most rapid 
 
215 
possible is given to applications 
possible is given to applications 
treatment legally possible is given to 
 
from companies working in the field  from companies working in the field  applications from companies 
of relevant defence products to use 
of relevant defence products to use 
working in the field of relevant 
such derogations. 
such derogations. 
defence products to use such 
 
 
derogations. 
 
  Article 19 
 
 
 
 
 
Article 19 
Article 19 
Article 19 
 
Facilitation of common procurement  Facilitation of common procurement  Facilitation of common procurement 
 
216 
 
during the current ammunition 
during the current ammunition 
during the current ammunition 
supply crisis 
supply crisis 
supply crisis 
 
 
 
  Article 19(1) 
 
 
 
 
 
1.  Where at least three Member 
1.  Where at least three Member 
1.  Where at least threetwo Member 
 
States enter into an agreement to 
States enter into an agreement to 
States enter into an agreement to 
commonly procure relevant defence 
commonly procure relevant defence 
commonly procure relevant  
products and where the extreme 
products and where the extreme 
defence products and where the 
urgency deriving from the current 
urgency deriving from the current 
extreme urgency deriving from the 
 
217 
 
crisis resulting from the Russian 
crisis resulting from the Russian 
current crisis resulting from the 
aggression of Ukraine prevents to 
aggression of Ukraine prevents to 
Russian aggression of Ukraine 
use any of the procedures provided 
use any of the procedures provided 
prevents to use any of the procedures 
for by Directive 2009/81/EC for the 
for by Directive 2009/81/EC for the 
provided for by Directive 
award of a framework agreement, 
award of a framework agreement, 
2009/81/EC for the award of a 
the following rules may be applied. 
the following rules may be applied. 
framework agreement, the following 
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on establishing the Act in Support of Ammunition Production   2023/0140(COD)   22‐06‐2023 at 18h43    94/112 

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Commission Proposal 
EP Mandate 
Council Mandate 
Draft Agreement 
 
 
 
rules may be applied. 
 
  Article 19(2) 
 
 
 
 
 
2.  By way of derogation from 
2.  By way of derogation from 
2.  By way of derogation from 
 
Article 29(2) second subparagraph 
Article 29(2) second subparagraph 
Article 29(2) second subparagraph 
of Directive 2009/81/EC, a 
of Directive 2009/81/EC, a 
of Directive 2009/81/EC, a 
contracting authority may modify an  contracting authority may modify an  contracting authority may modify an 
existing framework agreement 
existing framework agreement 
existing framework agreement 
which has been awarded through one  which has been awarded through one  which has been awarded through one 
 
218 
of the procedures provided for by 
of the procedures provided for by 
of the procedures provided for by 
 
Article 21 of Directive 2009/81/EC 
Article 21 of Directive 2009/81/EC 
Article 2125 of Directive 
so that its provisions may apply to 
so that its provisions may apply to 
2009/81/EC so that its provisions 
contracting authorities/entities which  contracting authorities/entities which  may apply to contracting 
are not originally party to the 
are not originally party to the 
authorities/entities which are not 
framework agreement. 
framework agreement. 
originally party to the framework 
 
 
agreement. 
 
  Article 19(3) 
 
 
 
 
 
3.  By way of derogation from 
3.  By way of derogation from 
3.  By way of derogation from 
 
Article 29(2) third sub-paragraph of 
Article 29(2) third sub-paragraph of 
Article 29(2) third sub-paragraph of 
Directive 2009/81/EC, a contracting 
Directive 2009/81/EC, a contracting 
Directive 2009/81/EC, a contracting 
authority may make substantial 
authority may make substantial 
authority may make substantial 
amendments to the quantities laid 
amendments to the quantities laid 
amendments to the quantities laid 
down in an existing framework 
down in an existing framework 
down in an existing framework 
agreement insofar as it is strictly 
agreement insofar as it is strictly 
agreement insofar as it is strictly 
 
219 
necessary for the application of 
necessary for the application of 
necessary for the application of 
 
paragraph 2. Where quantities laid 
paragraph 2. Where quantities laid 
paragraph 2. Where quantities laid 
down in an existing framework 
down in an existing framework 
down in an existing framework 
agreement are substantially modified  agreement are substantially modified  agreement are substantially modified 
pursuant to this paragraph, the 
pursuant to this paragraph, the 
pursuant to this paragraph, any 
contracting authority shall open the 
contracting authority shall open the 
economic operator that meets the 
possibility, by means of an ad hoc 
possibility, by means of an ad hoc 
contracting authority’s conditions 
notice published in the Official 
notice published in the Official 
initially laid down in the public 
Journal of the European Union, to 
Journal of the European Union, to 
procurement procedure for the 
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on establishing the Act in Support of Ammunition Production   2023/0140(COD)   22‐06‐2023 at 18h43    95/112 

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Commission Proposal 
EP Mandate 
Council Mandate 
Draft Agreement 
 
any economic operator that meets 
any economic operator that meets 
framework agreement, including  
the conditions initially laid down in 
the conditions initially laid down in 
requirements for qualitative 
the framework agreement, to join 
the framework agreement, to join 
selection as referred to in articles 
that framework agreement. 
that framework agreement. 
39 to 46 of Directive  
 
 
2009/81/EC, shall be given the 
opportunity to join that 
framework agreement.shall open 
the possibility, by means of an ad 
hoc notice published in the Official 
Journal of the European Union, to 
any economic operator that meets 
the conditions initially laid down in 
the framework agreement, to join 
that framework agreement. Tthe 
contracting authority shall open that 
the possibility by means of an ad hoc 
notice published in the Official 
Journal of the European Union, to 
any economic operator that meets 
the conditions initially laid down in 
the framework agreement, to join 
that framework agreement. 
 
 
  Article 19(4) 
 
 
 
 
 
4.  The principle of non-
4.  The principle of non-
4.  The principle of non-
 
discrimination shall apply to 
discrimination shall apply to 
discrimination shall apply to 
framework agreements referred to in  framework agreements referred to in  framework agreements referred to in 
paragraph 2 and 3 with regard to the  paragraph 2 and 3 with regard to the  paragraph 2 and 3 with regard to the 
 
220 
 
additional quantities, and notably 
additional quantities, and notably 
additional quantities, and notably 
between contracting authorities of 
between contracting authorities of 
between contracting authorities of 
Member States referred to in 
Member States referred to in 
Member States referred to in 
paragraph 1. 
paragraph 1. 
paragraph 1. 
 
 
 
  Article 19(5) 
 
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on establishing the Act in Support of Ammunition Production   2023/0140(COD)   22‐06‐2023 at 18h43    96/112 

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Commission Proposal 
EP Mandate 
Council Mandate 
Draft Agreement 
 
 
 
 
 
5.  Contracting authorities having 
5.  Contracting authorities having 
5.  Contracting authorities having 
 
modified a contract in the cases set 
modified a contract in the cases set 
modified a contract in the cases set 
out under paragraphs 2 and 3 of this 
out under paragraphs 2 and 3 of this 
out under paragraphs 2 and 3 of this 
article shall publish a notice to that 
article shall publish a notice to that 
article shall publish a notice to that 
 
221 
 
effect in the Official Journal of the 
effect in the Official Journal of the 
effect in the Official Journal of the 
European Union. Such notice shall 
European Union. Such notice shall 
European Union. Such notice shall 
be published in accordance with 
be published in accordance with 
be published in accordance with 
Article 32 of Directive 2009/81/EC. 
Article 32 of Directive 2009/81/EC. 
Article 32 of Directive 2009/81/EC. 
 
 
 
  Article 19(6) 
 
 
 
 
 
6.  Contracting authorities/entities 
6.  Contracting authorities/entities 
6.  Contracting authorities/entities 
 
may not use this Article improperly 
may not use this Article improperly 
may not use this Article improperly 
 
222 
 
or in such a way as to prevent, 
or in such a way as to prevent, 
or in such a way as to prevent, 
restrict or distort competition. 
restrict or distort competition. 
restrict or distort competition. 
 
 
 
  Article 19(7) 
 
 
 
 
 
7.  Modifications introduced in the 
7.  Modifications introduced in the 
7.  Modifications introduced in the 
 
framework agreements referred to in  framework agreements referred to in  framework agreements referred to in 
 
223 
 
this article shall not be concluded 
this article shall not be concluded 
this article shall not be concluded 
after 30 June 2025. 
after 30 June 2025. 
after 30 June 2025. 
 
 
 
  Article 20 
 
 
 
 
 
Article 20 
Article 20 
 
 
 
224 
Facilitation of intra-EU transfers of 
Facilitation of intra-EU transfers of 
deleted 
 
defence-related products  
defence-related products  
 
 
 
  Article 20(1) 
 
 
 
 
 
 
225 
1.  By way of derogation from 
1.  By way of derogation from 
 
 
 
Article 4(1) of Directive 
Article 4(1) of Directive 
deleted 
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on establishing the Act in Support of Ammunition Production   2023/0140(COD)   22‐06‐2023 at 18h43    97/112 

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Commission Proposal 
EP Mandate 
Council Mandate 
Draft Agreement 
 
2009/43/EC, the transfer of the 
2009/43/EC, the transfer of the 
 
following defence-related products 
following defence-related products 
between Member States shall not be 
between Member States shall not be 
subject to prior authorisation: 
subject to prior authorisation: 
 
 
  Article 20(1), point (a) 
 
 
 
 
 
(a)  ammunition and fuze setting 
(a)  ammunition and fuze setting 
 
 
devices, and specially designed 
devices, and specially designed 
deleted 
components therefor, as listed in the 
components therefor, as listed in the 
 
 
226 
third category of the Annex of the 
third category of the Annex of the 
 
Directive 2009/43/EC (third 
Directive 2009/43/EC (third 
category of the EU Military List – 
category of the EU Military List – 
ML3); 
ML3); 
 
 
  Article 20(1), point (b) 
 
 
 
 
 
(b)  missiles and related equipment 
(b)  missiles and related equipment 
 
 
and accessories, and specially 
and accessories, and specially 
deleted 
designed components therefor, as 
designed components therefor, as 
 
 
227 
listed in the fourth category of the 
listed in the fourth category of the 
 
Annex of the Directive 2009/43/EC 
Annex of the Directive 2009/43/EC 
(fourth category of the EU Military 
(fourth category of the EU Military 
List – ML4). 
List – ML4). 
 
 
  Article 20(2) 
 
 
 
 
 
2.  Any transfer in accordance with 
2.  Any transfer in accordance with 
 
 
the derogation set out in paragraph 1  the derogation set out in paragraph 1 
deleted 
 
228 
 
shall be notified, for information, to 
shall be notified, for information, to 
 
the Member State of origin. 
the Member State of origin. 
 
 
  Article 20(3) 
 
 
229 
 
 
 
 
 
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on establishing the Act in Support of Ammunition Production   2023/0140(COD)   22‐06‐2023 at 18h43    98/112 

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Commission Proposal 
EP Mandate 
Council Mandate 
Draft Agreement 
 
3.  This article does not affect the 
3.  This article does not affect the 
 
 
discretion of Member States as 
discretion of Member States as 
deleted 
regards policy on the export of the 
regards policy on the export of the 
 
defence-related products covered by  defence-related products covered by 
paragraph 1. 
paragraph 1. 
 
 
  Chapter V 
 
 
 
 
 
Chapter V 
Chapter V 
Chapter V 
 
Specific Provisions Applicable to 
Specific Provisions Applicable to 
Specific Provisions Applicable to 
 
230 
Access to Finance 
Access to Finance 
Access to FinanceSPECIFIC 
 
 
 
PROVISIONS APPLICABLE TO 
ACCESS TO FINANCE 
 
  Article 21 
 
 
 
 
 
Article 21 
Article 21 
Article 21 
 
 
231 
 
Ramp-up Fund 
Ramp-up Fund 
Ramp-up Fund 
 
 
 
  Article 21(1) 
 
 
 
 
 
1.  A blending facility may be 
1.  A blending facility may be 
1.  A blending facility may be 
 
established, to be described as the 
established, to be described as the 
established, to be described as the 
‘Ramp-up Fund’ proposing debt 
‘Ramp-up Fund’ proposing debt 
‘Ramp-up Fund’ proposing  
 
232 
 
solutions, to leverage, de-risk and 
solutions, to leverage, de-risk and 
debt solutions, to leverage, de-risk 
speed-up investments needed to 
speed-up investments needed to 
and speed-up investments needed to 
increase manufacturing capacities. 
increase manufacturing capacities. 
increase manufacturing capacities. 
 
 
 
  Article 21(2) 
 
 
 
 
 
2.  The specific objectives pursued 
2.  The specific objectives pursued 
2.  The specific objectives pursued 
 
 
233 
by the Ramp-up Fund are set out as 
by the Ramp-up Fund are set out as 
by the Ramp-up Fund are set out as 
 
follows: 
follows: 
follows: 
 
 
 
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on establishing the Act in Support of Ammunition Production   2023/0140(COD)   22‐06‐2023 at 18h43    99/112 

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Commission Proposal 
EP Mandate 
Council Mandate 
Draft Agreement 
 
  Article 21(2), point (a) 
 
 
 
 
 
(a)  improving the leverage effect of 
(a)  improving the leverage effect of 
(a)  improving the leverage effect of 
 
the Union budget spending and 
the Union budget spending and 
the Union budget spending and 
 
234 
achieving a higher multiplier effect 
achieving a higher multiplier effect 
achieving a higher  
 
in terms of attracting private-sector 
in terms of attracting private-sector 
multiplier effect in terms of 
financing; 
financing; 
attracting private-sector financing; 
 
 
 
  Article 21(2), point (b) 
 
 
 
 
 
(b)  providing support to companies 
(b)  providing support to companies 
(b)  providing support to companies 
 
facing difficulties in accessing 
facing difficulties in accessing 
facing difficulties in accessing 
 
235 
finance, and addressing the need to 
finance, and addressing the need to 
finance, and addressing the need to 
 
underpin the resilience of the 
underpin the resilience of the 
underpin the resilience of the 
Union’s defence industry; 
Union’s defence industry; 
Union’s defence industry; 
 
 
 
  Article 21(2), point (c) 
 
 
 
 
 
(c)  accelerating investment in the 
(c)  accelerating investment in the 
(c)  accelerating investment in the 
 
field of manufacturing relevant 
field of manufacturing relevant 
field of manufacturing relevant 
defence products and to leveraging 
defence products and to leveraging 
defence products and to leveraging 
funding from both the public and the  funding from both the public and the  funding from both the public and the 
 
236 
 
private sectors, while increasing the 
private sectors, while increasing the 
private sectors, while increasing the 
security of supply for the whole 
security of supply for the whole 
security of supply for the whole 
Union’s defence industry value 
Union’s defence industry value 
Union’s defence industry value 
chain; 
chain; 
chain; 
 
 
 
  Article 21(2), point (d) 
 
 
 
 
 
(d)  enhancing access to finance for 
(d)  enhancing access to finance for 
(d)  enhancing access to finance for 
 
investments related to activities 
investments related to activities 
investments related to activities 
 
237 
 
described in points (a) to (e) of 
described in points (a) to (e) of 
described in points  
article 8(3). 
article 8(3). 
(a) to (e) of article 8(3). 
 
 
 
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on establishing the Act in Support of Ammunition Production   2023/0140(COD)   22‐06‐2023 at 18h43    100/112 

---

 
 
Commission Proposal 
EP Mandate 
Council Mandate 
Draft Agreement 
 
  Chapter VI 
 
 
 
 
 
Chapter VI 
Chapter VI 
Chapter VI 
 
 
238 
Final Provisions 
Final Provisions 
Final ProvisionsFINAL 
 
 
 
PROVISIONS 
 
  Article 22 
 
 
 
 
 
Article 22 
Article 22 
Article 22 
 
 
239 
 
Committee Procedure 
Committee Procedure 
Committee Procedure 
 
 
 
  Article 22(1) 
 
 
 
 
 
1.  The Commission shall be assisted  1.  The Commission shall be assisted  1.  The Commission shall be assisted   
by a committee. That committee 
by a committee. That committee 
by a committee. That committee 
 
240 
shall be a committee within the 
shall be a committee within the 
shall be a committee within the 
 
meaning of Regulation (EU) No 
meaning of Regulation (EU) No 
meaning of Regulation (EU) No 
182/2011. 
182/2011. 
182/2011. 
 
 
 
  Article 22(2) 
 
 
 
 
 
2.  The European Defence Agency 
2.  The European Defence Agency 
2.  The European Defence Agency 
 
shall be invited to provide its views 
shall be invited to provide its views 
shall be invited to provide its views 
and expertise to the committee as an  and expertise to the committee as an  and expertise to the committee as an 
 
241 
 
observer. The European External 
observer. The European External 
observer. The European External 
Action Service shall also be invited 
Action Service shall also be invited 
Action Service shall also be invited 
to assist in the committee. 
to assist in the committee. 
to assist in the committee. 
 
 
 
  Article 22(3) 
 
 
 
 
 
3.  Where reference is made to this 
3.  Where reference is made to this 
3.  Where reference is made to this 
 
 
242 
paragraph, Article 5 of Regulation 
paragraph, Article 5 of Regulation 
paragraph, Article 5 of Regulation 
 
(EU) No 182/2011 shall apply. 
(EU) No 182/2011 shall apply. 
(EU) No 182/2011 shall apply. 
 
 
Where the committee delivers no 
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on establishing the Act in Support of Ammunition Production   2023/0140(COD)   22‐06‐2023 at 18h43    101/112 

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Commission Proposal 
EP Mandate 
Council Mandate 
Draft Agreement 
 
opinion, the Commission shall not 
adopt the draft implementing act 
and the third subparagraph of 
Article 5(4) of Regulation (EU) No 
182/2011 shall apply. 
 
  Article 22(4) 
 
 
 
 
 
4.  Where reference is made to this 
4.  Where reference is made to this 
4.  Where reference is made to this 
 
paragraph, Article 8 of Regulation 
paragraph, Article 8 of Regulation 
paragraph, Article 8 of Regulation 
 
243 
 
(EU) No 182/2011, in conjunction 
(EU) No 182/2011, in conjunction 
(EU) No 182/2011, in conjunction 
with Article 5 thereof, shall apply. 
with Article 5 thereof, shall apply. 
with Article 5 thereof, shall apply. 
 
 
 
  Article 23 
 
 
 
 
 
Article 23 
Article 23 
Article 23 
 
 
244 
 
Security of Information 
Security of Information 
Security of Information 
 
 
 
  Article 23(1) 
 
 
 
 
 
1.  The Commission shall protect 
1.  The Commission shall protect 
1.  The Commission shall protect 
 
classified information received in 
classified information received in 
classified information received in 
relation to the implementation of this  relation to the implementation of this  relation to the  
regulation in accordance with the 
regulation in accordance with the 
implementation of this regulation in 
security rules set out in Commission  security rules set out in Commission  accordance with the security rules 
Decision (EU, Euratom) 2015/4441. 
Decision (EU, Euratom) 2015/4441. 
set out in  
 
245 
_________ 
_________ 
Commission Decision (EU, 
 
1. Commission Decision (EU, Euratom) 
1. Commission Decision (EU, Euratom) 
Euratom) 2015/4441.18  
2015/444 of 13 March 2015 on the security 
2015/444 of 13 March 2015 on the security 
_________ 
rules for protecting EU classified 
rules for protecting EU classified 
1. 18. Commission Decision (EU, Euratom) 
information (OJ L 72, 17.3.2015, p. 53–88). 
information (OJ L 72, 17.3.2015, p. 53–88). 
2015/444 of 13 March 2015 on the security 
 
 
rules for protecting EU classified 
information (OJ L 72, 17.3.2015, p. 53–88). 
 
  Article 23(2) 
 
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on establishing the Act in Support of Ammunition Production   2023/0140(COD)   22‐06‐2023 at 18h43    102/112 

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Commission Proposal 
EP Mandate 
Council Mandate 
Draft Agreement 
 
 
 
 
 
2.  The Commission shall make use 
2.  The Commission shall make use 
2.  The Commission shall make use 
 
of existing or set up secured 
of existing or set up secured 
of existing or set up secured 
exchange systems in order to 
exchange systems in order to 
exchange systems in order to 
facilitate the exchange of sensitive 
facilitate the exchange of sensitive 
facilitate the exchange of sensitive 
and classified information between 
and classified information between 
and classified information between 
the Commission, the High 
the Commission, the High 
the Commission, the High 
Representative, the European 
Representative, the European 
Representative, the European 
 
246 
 
Defence Agency, and the Member 
Defence Agency, and the Member 
Defence Agency, and the Member 
States and, where appropriate, with 
States and, where appropriate, with 
States and, where appropriate, with 
the legal entities subject to measures  the legal entities subject to measures  the legal entities subject to measures 
set out in this Regulation. That 
set out in this Regulation. That 
set out in this Regulation. That 
system shall take into account the 
system shall take into account the 
system shall take into account the 
Member States’ national security 
Member States’ national security 
Member States’ national security 
regulations. 
regulations. 
regulations. 
 
 
 
  Article 24 
 
 
 
 
 
Article 24 
Article 24 
Article 24 
 
 
247 
Confidentiality and processing of the  Confidentiality and processing of the  Confidentiality and processing of the 
 
information  
information  
information  
 
 
 
  Article 24(1) 
 
 
 
 
 
1.  Information received as a result 
1.  Information received as a result 
1.  Information received as a result 
 
of the application of this Regulation 
of the application of this Regulation 
of the application of this Regulation 
 
248 
 
shall be used only for the purpose 
shall be used only for the purpose 
shall be used only for the purpose 
for which it was requested. 
for which it was requested. 
for which it was requested. 
 
 
 
  Article 24(2) 
 
 
 
 
 
2.  Member States and the 
2.  Member States and the 
2.  Member States and the 
 
 
249 
Commission shall ensure the 
Commission shall ensure the 
Commission shall ensure the 
 
protection of trade and business 
protection of trade and business 
protection of trade and business  
secrets and other sensitive and 
secrets and other sensitive and 
secrets and other sensitive and 
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on establishing the Act in Support of Ammunition Production   2023/0140(COD)   22‐06‐2023 at 18h43    103/112 

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Commission Proposal 
EP Mandate 
Council Mandate 
Draft Agreement 
 
classified information acquired and 
classified information acquired and 
classified information acquired and 
generated in application of this 
generated in application of this 
generated in application of this 
Regulation, including 
Regulation, including 
Regulation, including 
recommendations and measures to 
recommendations and measures to 
recommendations and measures to 
be taken, in accordance with Union 
be taken, in accordance with Union 
be taken, in accordance with Union 
and the respective national law. 
and the respective national law. 
and the respective national law. 
 
 
 
  Article 24(3) 
 
 
 
 
 
3.  Member States and the 
3.  Member States and the 
3.  Member States and the 
 
Commission shall ensure that 
Commission shall ensure that 
Commission shall ensure that 
classified information provided or 
classified information provided or 
classified information provided or 
 
250 
exchanged under this Regulation is 
exchanged under this Regulation is 
exchanged under this Regulation is 
 
not downgraded or declassified 
not downgraded or declassified 
not downgraded or declassified 
without the prior written consent of 
without the prior written consent of 
without the prior written consent of 
the originator. 
the originator. 
the originator. 
 
 
 
  Article 24(4) 
 
 
 
 
 
4.  The Commission shall not share 
4.  The Commission shall not share 
4.  The Commission shall not share 
 
any information in a way that can 
any information in a way that can 
any information in a way that can 
lead to the identification of an 
lead to the identification of an 
lead to the identification of an 
individual operator when the sharing  individual operator when the sharing  individual operator when the sharing 
 
251 
 
of the information results in 
of the information results in 
of the information results in 
potential commercial or reputational  potential commercial or reputational  potential commercial or reputational 
damage to this operator or in 
damage to this operator or in 
damage to this operator or in 
divulging any trade secrets. 
divulging any trade secrets. 
divulging any trade secrets. 
 
 
 
  Article 25 
 
 
 
 
 
Article 25 
Article 25 
Article 25 
 
 
252 
 
Personal data protection  
Personal data protection  
Personal data protection  
 
 
 
  Article 25(1) 
 
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on establishing the Act in Support of Ammunition Production   2023/0140(COD)   22‐06‐2023 at 18h43    104/112 

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Commission Proposal 
EP Mandate 
Council Mandate 
Draft Agreement 
 
 
 
 
 
1.  This Regulation shall be without 
1.  This Regulation shall be without 
1.  This Regulation shall be without 
 
prejudice to the obligations of 
prejudice to the obligations of 
prejudice to the obligations of 
Member States relating to their 
Member States relating to their 
Member States relating to their 
processing of personal data under 
processing of personal data under 
processing of personal data under 
Regulation (EU) 2016/679 of the 
Regulation (EU) 2016/679 of the 
Regulation (EU) 2016/679 of the 
European Parliament and of the 
European Parliament and of the 
European Parliament and of the 
Council1 and Directive 2002/58/EC 
Council1 and Directive 2002/58/EC 
Council119 and Directive 2002/58/EC 
of the European Parliament and of 
of the European Parliament and of 
of the European Parliament and of 
the Council2 , or the obligations of 
the Council2 , or the obligations of 
the Council2 20, or the obligations of 
the Commission and, where 
the Commission and, where 
the Commission and, where 
appropriate, other Union institutions  appropriate, other Union institutions  appropriate, other Union institutions 
and bodies, relating to their 
and bodies, relating to their 
and bodies, relating to their 
processing of personal data under 
processing of personal data under 
processing of personal data under  
Regulation (EU) 2018/1725 of the 
Regulation (EU) 2018/1725 of the 
Regulation (EU) 2018/1725 of the 
European Parliament and of the 
European Parliament and of the 
European Parliament and of the 
Council3, when fulfilling their 
Council3, when fulfilling their 
Council321, when fulfilling their 
responsibilities. 
responsibilities. 
responsibilities. 
 
253 
_________ 
_________ 
_________ 
 
1. Regulation (EU) 2016/679 of the 
1. Regulation (EU) 2016/679 of the 
1. 19. Regulation (EU) 2016/679 of the 
European Parliament and of the Council of 
European Parliament and of the Council of 
European Parliament and of the Council of 
27 April 2016 on the protection of natural 
27 April 2016 on the protection of natural 
27 April 2016 on the protection of natural 
persons with regard to the processing of 
persons with regard to the processing of 
persons with regard to the processing of 
personal data and on the free movement of 
personal data and on the free movement of 
personal data and on the free movement of 
such data, and repealing Directive 95/46/EC 
such data, and repealing Directive 95/46/EC 
such data, and repealing Directive 95/46/EC 
(General Data Protection Regulation) (OJ L 
(General Data Protection Regulation) (OJ L 
(General Data Protection Regulation) (OJ L 
119, 4.5.2016, p. 1–88). 
119, 4.5.2016, p. 1–88). 
119, 4.5.2016, p. 1–88). 
2. Directive 2002/58/EC of the European 
2. Directive 2002/58/EC of the European 
2. 20. Directive 2002/58/EC of the European 
Parliament and of the Council of 12 July 
Parliament and of the Council of 12 July 
Parliament and of the Council of 12 July 
2002 concerning the processing of personal 
2002 concerning the processing of personal 
2002 concerning the processing of personal 
data and the protection of privacy in the 
data and the protection of privacy in the 
data and the protection of privacy in the 
electronic communications sector (Directive 
electronic communications sector (Directive 
electronic communications sector (Directive 
on privacy and electronic communications) 
on privacy and electronic communications) 
on privacy and electronic communications) 
(OJ L 201, 31.7.2002, p. 37–47). 
(OJ L 201, 31.7.2002, p. 37–47). 
(OJ L 201, 31.7.2002, p. 37–47). 
3. Regulation (EU) 2018/1725 of the 
3. Regulation (EU) 2018/1725 of the 
3. 21. Regulation (EU) 2018/1725 of the 
European Parliament and of the Council of 
European Parliament and of the Council of 
European Parliament and of the Council of 
23 October 2018 on the protection of natural 
23 October 2018 on the protection of natural 
23 October 2018 on the protection of natural 
persons with regard to the processing of 
persons with regard to the processing of 
persons with regard to the processing of 
personal data by the Union institutions, 
personal data by the Union institutions, 
personal data by the Union institutions, 
bodies, offices and agencies and on the free 
bodies, offices and agencies and on the free 
bodies, offices and agencies and on the free 
movement of such data, and repealing 
movement of such data, and repealing 
movement of such data, and repealing 
Regulation (EC) No 45/2001 and Decision 
Regulation (EC) No 45/2001 and Decision 
Regulation (EC) No 45/2001 and Decision 
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on establishing the Act in Support of Ammunition Production   2023/0140(COD)   22‐06‐2023 at 18h43    105/112 

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Commission Proposal 
EP Mandate 
Council Mandate 
Draft Agreement 
 
No 1247/2002/EC (OJ L 295, 21.11.2018, p. 
No 1247/2002/EC (OJ L 295, 21.11.2018, p. 
No 1247/2002/EC (OJ L 295, 21.11.2018, p. 
39–98). 
39–98). 
39–98). 
 
 
 
  Article 25(2) 
 
 
 
 
 
2.  Personal data shall not be 
2.  Personal data shall not be 
2.  Personal data shall not be 
 
processed or communicated except 
processed or communicated except 
processed or communicated except 
in cases where this is strictly 
in cases where this is strictly 
in cases where this is strictly 
necessary to the purposes of this 
necessary to the purposes of this 
necessary to the purposes of this 
 
254 
Regulation. In such cases, the 
Regulation. In such cases, the 
Regulation. In such cases, the 
 
conditions of Regulation (EU) 
conditions of Regulation (EU) 
conditions of Regulation (EU) 
2016/679 and Regulation (EU) 
2016/679 and Regulation (EU) 
2016/679 and Regulation (EU) 
2018/1725 shall apply as 
2018/1725 shall apply as 
2018/1725 shall apply as 
appropriate. 
appropriate. 
appropriate. 
 
 
 
  Article 25(3) 
 
 
 
 
 
3.  Where processing of personal 
3.  Where processing of personal 
3.  Where processing of personal 
 
data is not strictly necessary to the 
data is not strictly necessary to the 
data is not strictly necessary to the 
fulfilment of the mechanisms 
fulfilment of the mechanisms 
fulfilment of the  
established in this Regulation, 
established in this Regulation, 
mechanisms established in this 
 
255 
 
personal data shall be rendered 
personal data shall be rendered 
Regulation, personal data shall be 
anonymous in such a manner that the  anonymous in such a manner that the  rendered anonymous in such a 
data subject is not identifiable. 
data subject is not identifiable. 
manner that the data subject is not 
 
 
identifiable. 
 
  Article 26 
 
 
 
 
 
Article 26 
Article 26 
Article 26 
 
 
256 
 
Audits  
Audits  
Audits  
 
 
 
  Article 26, first paragraph 
 
 
 
 
 
 
257 
 
Audits on the use of the Union 
Audits on the use of the Union 
Audits on the use of the Union 
 
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on establishing the Act in Support of Ammunition Production   2023/0140(COD)   22‐06‐2023 at 18h43    106/112 

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Commission Proposal 
EP Mandate 
Council Mandate 
Draft Agreement 
 
contribution carried out by persons 
contribution carried out by persons 
contribution carried out by persons 
or entities, including by other than 
or entities, including by other than 
or entities, including by other than 
those mandated by the Union 
those mandated by the Union 
those mandated by the Union 
institutions, bodies, offices or 
institutions, bodies, offices or 
institutions, bodies, offices or 
agencies, shall form the basis of the 
agencies, shall form the basis of the 
agencies, shall form the basis of the 
overall assurance pursuant to Article  overall assurance pursuant to Article  overall assurance pursuant to Article 
127 of the Financial Regulation. The  127 of the Financial Regulation. The  127 of the Financial Regulation. The 
Court of Auditors shall examine the 
Court of Auditors shall examine the 
Court of Auditors shall examine the 
accounts of all revenue and 
accounts of all revenue and 
accounts of all revenue and 
expenditure of the Union in 
expenditure of the Union in 
expenditure of the Union in 
accordance with Article 287 TFEU. 
accordance with Article 287 TFEU. 
accordance with Article 287 TFEU. 
 
 
 
  Article 27 
 
 
 
 
 
Article 27 
Article 27 
Article 27 
 
 
258 
Protection of the financial interests 
Protection of the financial interests 
Protection of the financial interests 
 
of the Union  
of the Union  
of the Union  
 
 
 
  Article 27, first paragraph 
 
 
 
 
 
Where an associated country 
Where an associated country 
Where an associated country 
 
participates in the Instrument by 
participates in the Instrument by 
participates in the Instrument by 
means of a decision adopted 
means of a decision adopted 
means of a decision adopted 
pursuant to the Agreement on the 
pursuant to the Agreement on the 
pursuant to the Agreement on the 
European Economic Area, the 
European Economic Area, the 
European Economic Area, the 
associated country shall grant the 
associated country shall grant the 
associated country shall grant the 
necessary rights and access required 
necessary rights and access required 
necessary rights and access required 
 
259 
for the authorising officer 
for the authorising officer 
for the authorising officer 
 
responsible, OLAF and the Court of 
responsible, OLAF and the Court of 
responsible, OLAF and the Court of 
Auditors to comprehensively 
Auditors to comprehensively 
Auditors to comprehensively 
exercise their respective 
exercise their respective 
exercise their respective 
competences. In the case of OLAF, 
competences. In the case of OLAF, 
competences. In the case of OLAF, 
such rights shall include the right to 
such rights shall include the right to 
such rights shall include the right to 
carry out investigations, including 
carry out investigations, including 
carry out investigations, including 
on-the-spot checks and inspections, 
on-the-spot checks and inspections, 
on-the-spot checks and inspections, 
as provided for in Regulation (EU, 
as provided for in Regulation (EU, 
as provided for in Regulation (EU, 
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on establishing the Act in Support of Ammunition Production   2023/0140(COD)   22‐06‐2023 at 18h43    107/112 

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Commission Proposal 
EP Mandate 
Council Mandate 
Draft Agreement 
 
Euratom) No 883/2013. 
Euratom) No 883/2013. 
Euratom) No 883/2013. 
 
 
 
  Article 28 
 
 
 
 
 
Article 28 
Article 28 
Article 28 
 
 
260 
Information, communication and 
Information, communication and 
Information, communication and 
 
publicity  
publicity  
publicity  
 
 
 
  Article 28(1) 
 
 
 
 
 
1.  The recipients of Union funding 
1.  The recipients of Union funding 
1.  The recipients of Union funding 
 
shall acknowledge the origin of 
shall acknowledge the origin of 
shall acknowledge the origin of 
those funds and ensure the visibility 
those funds and ensure the visibility 
those funds and ensure the visibility 
of the Union funding, in particular 
of the Union funding, in particular 
of the Union funding, in particular 
 
261 
when promoting the actions and 
when promoting the actions and 
when promoting the actions and 
 
their results, by providing coherent, 
their results, by providing coherent, 
their results, by providing coherent, 
effective and proportionate targeted 
effective and proportionate targeted 
effective and proportionate targeted 
information to multiple audiences, 
information to multiple audiences, 
information to multiple audiences, 
including the media and the public. 
including the media and the public. 
including the media and the public. 
 
 
 
  Article 28(2) 
 
 
 
 
 
2.  The Commission shall implement  2.  The Commission shall implement  2.  The Commission shall implement   
information and communication 
information and communication 
information and communication 
actions relating to the Instrument, to 
actions relating to the Instrument, to 
actions relating to the Instrument, to 
 
262 
 
actions taken pursuant to the 
actions taken pursuant to the 
actions taken pursuant to the 
Instrument and to the results 
Instrument and to the results 
Instrument and to the results 
obtained. 
obtained. 
obtained. 
 
 
 
  Article 28(3) 
 
 
 
 
 
3.  Financial resources allocated to 
3.  Financial resources allocated to 
3.  Financial resources allocated to 
 
 
263 
 
the Fund shall also contribute to the 
the Fund shall also contribute to the 
the Fund shall also contribute to the 
corporate communication of the 
corporate communication of the 
corporate communication of the 
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on establishing the Act in Support of Ammunition Production   2023/0140(COD)   22‐06‐2023 at 18h43    108/112 

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Commission Proposal 
EP Mandate 
Council Mandate 
Draft Agreement 
 
political priorities of the Union, 
political priorities of the Union, 
political priorities of the Union, 
insofar as those priorities are related  insofar as those priorities are related 
insofar as those priorities are related 
to the objectives referred to in 
to the objectives referred to in 
to the objectives referred to in 
Article 4. 
Article 4. 
Article 4. 
 
 
 
  Article 28(4) 
 
 
 
 
 
4.  Financial resources allocated to 
4.  Financial resources allocated to 
4.  Financial resources allocated to 
 
the Fund may also contribute to the 
the Fund may also contribute to the 
the Fund may also contribute to the 
organisation of dissemination 
organisation of dissemination 
organisation of  
activities, match-making events and 
activities, match-making events and 
dissemination activities, match-
 
264 
awareness-raising activities, in 
awareness-raising activities, in 
making events and awareness-
 
particular aiming at opening up 
particular aiming at opening up 
raising activities, in  
supply chains to foster the cross-
supply chains to foster the cross-
particular aiming at opening up 
border participation of SMEs. 
border participation of SMEs. 
supply chains to foster the cross-
 
 
border participation of SMEs. 
 
  Article 29 
 
 
 
 
 
Article 29 
Article 29 
Article 29 
 
 
265 
 
Evaluation  
Evaluation  
Evaluation  
 
 
 
  Article 29(1) 
 
 
 
 
 
1.  No later than 30 June 2024, the 
1.  No later than 30 June 2024, the 
1.  No later than 30 June 2024, the 
 
Commission shall draw up a report 
Commission shall draw up a report 
Commission shall draw up a report 
evaluating the implementation of the  evaluating the implementation of the  evaluating the  
measures set out in this Regulation 
measures set out in this Regulation 
implementation of the measures set 
and their results, as well as the 
and their results, as well as the 
out in this Regulation and their 
 
266 
 
opportunity to extend their 
opportunity to extend their 
results, as well as the opportunity to 
applicability and provide for their 
applicability and provide for their 
extend their applicability and 
funding, notably in regard of the 
funding, notably in regard of the 
provide for their funding, notably in 
evolution of the security context. 
evolution of the security context. 
regard of the evolution of the 
The evaluation report shall build on 
The evaluation report shall build on 
security context. The evaluation 
consultations of the Member States 
consultations of the Member States 
report shall build on consultations of 
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on establishing the Act in Support of Ammunition Production   2023/0140(COD)   22‐06‐2023 at 18h43    109/112 

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Commission Proposal 
EP Mandate 
Council Mandate 
Draft Agreement 
 
and key stakeholders and be 
and key stakeholders and be 
the Member States and key 
communicated to the European 
communicated to the European 
stakeholders and be communicated 
Parliament and to the Council. 
Parliament and to the Council. 
to the European Parliament and to 
 
 
the Council. 
 
  Article 29(2) 
 
 
 
 
 
2.  Taking into account the 
2.  Taking into account the 
2.  Taking into account the 
 
evaluation report, the Commission 
evaluation report, the Commission 
evaluation report, the Commission 
may submit proposals for any 
may submit proposals for any 
may submit proposals for any 
appropriate amendments to this 
appropriate amendments to this 
appropriate amendments to this 
 
267 
 
Regulation, notably in view to 
Regulation, notably in view to 
Regulation, notably in view to 
continue addressing any persisting 
continue addressing any persisting 
continue addressing any persisting 
risks in relation to the supply of the 
risks in relation to the supply of the 
risks in relation to the supply of the 
relevant defence products. 
relevant defence products. 
relevant defence products. 
 
 
 
  Article 30 
 
 
 
 
 
Article 30 
Article 30 
Article 30 
 
 
268 
 
Entry into force and application 
Entry into force and application 
Entry into force and application 
 
 
 
  Article 30, first paragraph 
 
 
 
 
 
This Regulation shall enter into 
This Regulation shall enter into 
This Regulation shall enter into 
 
force on the day following that of its  force on the day following that of its  force on the day following that of its 
 
269 
publication in the Official Journal of  publication in the Official Journal of  publication in the Official Journal 
 
the European Union. 
the European Union. 
of the European Union.Official 
 
 
Journal of the European Union. 
 
  Article 30, second paragraph 
 
 
 
 
 
This Regulation shall apply until 30 
This Regulation shall apply until 30 
This Regulation shall apply until 30 
 
 
270 
 
June 2025. This shall not affect the 
June 2025. This shall not affect the 
June 2025. This shall not affect the 
continuation or modification of 
continuation or modification of 
continuation or modification of 
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on establishing the Act in Support of Ammunition Production   2023/0140(COD)   22‐06‐2023 at 18h43    110/112 

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Commission Proposal 
EP Mandate 
Council Mandate 
Draft Agreement 
 
actions initiated pursuant to this 
actions initiated pursuant to this 
actions initiated pursuant to this 
Regulation, all actions necessary to 
Regulation, all actions necessary to 
Regulation, all actions necessary to 
protect the financial interests of the 
protect the financial interests of the 
protect the financial interests of the 
European Union and the powers 
European Union and the powers 
European Union and the powers 
conferred on the Commission to 
conferred on the Commission to 
conferred on the Commission to 
impose penalties in accordance with 
impose penalties in accordance with 
impose penalties in accordance with 
Article 15. 
Article 15. 
Article 15. 
 
 
 
  Article 30, third paragraph 
 
 
 
 
 
This Regulation shall be binding in 
This Regulation shall be binding in 
This Regulation shall be binding in 
 
 
271 
its entirety and directly applicable in  its entirety and directly applicable in  its entirety and directly applicable in 
 
all Member States. 
all Member States. 
all Member States. 
 
 
 
  Formula 
 
 
 
 
 
 
272 
Done at Brussels, 
Done at Brussels, 
Done at Brussels, 
 
 
 
 
 
  Formula 
 
 
 
 
 
 
273 
For the European Parliament 
For the European Parliament 
For the European Parliament 
 
 
 
 
 
  Formula 
 
 
 
 
 
 
274 
The President 
The President 
The President 
 
 
 
 
 
  Formula 
 
 
 
 
 
 
275 
For the Council 
For the Council 
For the Council 
 
 
 
 
 
  Formula 
 
 
276 
 
 
 
 
 
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on establishing the Act in Support of Ammunition Production   2023/0140(COD)   22‐06‐2023 at 18h43    111/112 

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Commission Proposal 
EP Mandate 
Council Mandate 
Draft Agreement 
 
The President 
The President 
The President 
 
 
 
 
 
Proposal for a REGULATION OF THE EUROPEAN PARLIAMENT AND OF THE COUNCIL on establishing the Act in Support of Ammunition Production   2023/0140(COD)   22‐06‐2023 at 18h43    112/112 

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