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Introduce standby capacity-reservation contracts: procurement agencies pay a retainer to dual-use plants to hold reserved foundry, forge and machining hours that convert to defence orders within 30 days of call-off (building on the idle-capacity provisions of Latvia's Defence Industry and Innovation Strategy 2025-2036).

THE CHALLENGE

Civil plants cannot commit capacity to defence without demand certainty; lumpy orders push investment and skilled labour to civil work, leaving Europe without surge capacity for the 20x target.

PROPOSED ACTION

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RESPONSIBLE STAKEHOLDERS

National defence procurement agencies

TIMELINE

12 months

TARGET

At least one pilot capacity-reservation framework operational in Latvia; a simulated call-off test successfully produces and validates a test batch within 30 days; blueprint prepared for Lithuania and Estonia.