The EU has increased its defence production capacity by 50% since the start of the war in Ukraine, EU diplomatic chief Josep Borrell has said.

"In the beginning, the war was fuelled by reserves. Now we are moving to a war of industrial production. As the war has been going on for two years, it does not look like it will end soon, and the need for military equipment is growing, depleting stocks and increasing our industrial production capacity," Borrell said.

He noted, however, that even today the EU is still short of production capacity.

"We have increased (defence production - ed.) by 50%, it should increase even more and faster - but funding is fundamental. We don't have a Pentagon in Europe. We don't have an institution that has a high purchasing power that stimulates the market and the industry," the EU diplomatic chief said.