Funding is available to complete the design and development Proof of Concept of the U.S.-German and Italian missile defense effort, the Medium Extended Air and Missile Defense System (MEADS), Defense Secretary Chuck Hagel wrote to his counterparts in Germany and Italy.

However, in his April 8 letter Hagel wrote, “the funds provided for MEADS are subject to a reduction of less than 10 percent through the sequestration currently affecting our FY 2013 funds.”

Hagel waited to write until DoD fiscal year 2013 funds were settled and President Barack Obama signed the Consolidated and Further Continuing Appropriations Act 2013, making MEADS funds available. The two ministers, German Minister of Defense Thomas de Maiziere and Defense Minister Giampaolo Di Paola, wrote Hagel in early February.

Completing the Proof of Concept would likely include an intercept test flight in the fourth quarter of the year for the MEADS elements, and allow gathering more data on how the various elements interact and perform. It has been expected that the three nations could utilize the knowledge and actual components of the MEADS systems to apply to their future air and missile defense plans.

Resolving the contentious issue of the U.S. withdrawing from the program, which drew fire from the defense ministers as an action that would cause “economic damage,” Hagel said he was pleased the United States was able to fulfill its commitment in the memorandum of understanding for the MEADS design and development phase.

“The appropriated amount, less the sequester reduction, will be the final U.S. contribution to the MEADS program,” the letter said.

In mid-April, the National Armaments Directors are expected to meet in Brussels to talk about the way forward with the MEADS Proof of Concept, “on the margins of the Five-Power and NATO Conference of National Armaments Directors Meetings.”

MEADS is being developed by MEADS International, the joint venture that includes MBDA in Italy and MBDA’s LFK in Germany, and Lockheed Martin [LMT] in the United States.