European Defence giants Leonardo and Rheinmetall form a 50/50 Joint Venture for the development of the next Land Defence Systems

The Italian manufacturer Leonardo and the German arms maker Rheinmetall signed a strategic partnership on 3 July 2024 to establish a 50/50 joint venture for the industrial development and the subsequent commercialisation of a new battle tank for the Italian Army’s ground system programs. The new-born entity will be based in Italy, where 60 % of the overall production will take place (Leonardo, 2024). Over the next ten years, the two industrial groups aim to win contracts worth an estimated 20 billion euros from the Italian Army (Dragoni, 2024). The terms of the agreement will have a positive impact on the Italian supply chain as a whole and could capitalise more than 50 billion US dollars on the European market, as preannounced by Rheinmetall CEO Armin Papperger (Reuters, 2024). The Memorandum of Understanding signed by the two counterparts is now subject to approval by the European Commission and national competition authorities.

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What is in the Inbox of the EU’s Next Foreign Policy Representative, Kaja Kallas?

At the European Council Summit in Brussels on the 27th of June, EU leaders gathered to approve the bloc’s new leadership following the outcome of the European elections. Among the appointments, Kaja Kallas was tapped as the EU’s next High Representative of the Union for Foreign Affairs and Security Policy, succeeding the Spanish Josep Borrell. Currently the Prime Minister of Estonia, Kallas recognised the “enormous responsibility” she is entrusted with and reiterated her commitment to strengthening the EU’s defence capabilities (Kallas, 2024). Before being talked about for this position, her name had floated to lead NATO, as well as for the proposed role of EU Defense Commissioner, which Commission President Ursula von der Leyen promised to create if re-elected (McElvoy, 2024). Just like Von der Leyen and future EU Council President Antonio Costa, Kallas will need to get formal approval from EU lawmakers and the European Parliament’s Foreign Affairs Committee in the next fall (Nardelli and Tammik, 2024).

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Italian Prime Minister Giorgia Meloni and NATO Chief Jens Stoltenberg meet in Rome to Discuss Ukraine, Defence Spending and Mediterranean Security

On 8 May 2024, NATO Secretary General Jens Stoltenberg met with Italian Prime Minister Giorgia Meloni in Rome, Italy. Their discussion mainly focused on what will be at the heart of the upcoming NATO Summit, taking place in July in Washington, with the war in Ukraine leading the conversation (ANSA, 2024a). The Secretary General reiterated that sending boots on the ground to Ukraine is currently not an option for NATO, nor something that the Ukrainians have asked (ANSA 2024b). Instead, what Ukrainians are in desperate need of is additional military aid, especially in light of the recent territorial advance by the Russian army in the northeastern region of Kharkiv (Dettmer, 2024).

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Western military and financial support to Ukraine

After more than two years of war, Ukraine is experiencing a shortage of ammunition and military equipment, since the United States and European partner's struggle to resupply the country’s military (Bertrand & Bo Lillis, 2024). The lack of ammunition and personnel is having direct consequences on Ukraine’s position on the battlefield, as it deteriorates, Russia achieves new tactical successes near the village of Berdychi and Semenivka, both north of Avdiivka (Al Jazeera, 2024) a city captured by Russia in March 2024. The threat of a Ukrainian significant loss has prompted the European Union, the EU Member States, and the United States to consider sending military and financial aid packages in 2024 to respond to Ukraine’s shortages.

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Back to Basics: Europe’s Struggles and Successes with 155mm Shell Production

The early days of the war in Ukraine seemed to favour agile and relatively innovative capabilities which appeared to be the new protagonists of future battlefields. In fact, the fate of the war appeared to rest on Stingers and Starstreaks, Javelins and NLAWs, FPV commercial drones and on the Bayraktar TB2. However, as the chaotic first phase of the conflict ended, the focus shifted to the centuries-old king of battle: artillery. Much has been written on the rediscovered importance of artillery at the tactical and operational levels (Oltei, Potin, & Clarke, 2024). In contrast with the precision-oriented doctrine prevalent in the West, the war in Ukraine is revealing how precision- guided munitions can only complement and not substitute conventional indirect fire. The industrial capacity to produce this military ordinance en masse can indeed still determine victory on the battlefield. This analysis will thus focus on the 155mm NATO-standard artillery shell, the European states’ ability to produce it, and their significant shortcomings and progress.

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