The European military industry was alarmed by the onset of Russia's war against Ukraine, facing production challenges as Kyiv's demands for ammunition far exceeded European manufacturing capabilities. Within the first year of the conflict, Europe was producing less than 300,000 artillery shells annually, significantly less than the daily requirement seen during the invasion, which highlighted a critical supply-demand gap in European arsenals.

Four years into the war, the situation has markedly improved, attributed to a three-pronged strategy that involves public funding aimed at stimulating private investment. The European Commission's ASAP program initiated with a budget of 500 million euros, which later expanded through contributions from EU member states totaling an additional 2 billion euros. This infused further 8 billion euros from the industry itself, particularly as European defense ministries began signing long-term contracts to assure the sale of all produced military equipment, which is necessary to replenish the depleted stockpiles.

This investment surge in European arms production is not only a direct reaction to the current geopolitical climate but also signals a strategic shift in Europe’s defense posture, moving away from dependence on the U.S. for military supplies. As Europe continues to increase its production capacity and streamline defense procurement processes, the implications for regional security and defense autonomy are significant, suggesting a long-term transformation in how European nations approach their military readiness and capabilities.