A group of 18 EU countries have officially expressed interest in loans from the European ‘SAFE’ instrument to boost their defence capabilities, in a move that has been welcomed by Ukraine.
The €150bn Security Action for Europe (SAFE), launched in May, is a fund offering low-interest loans to EU member states, Ukraine, and non-EU countries with a security agreement, such as the UK, to jointly purchase military equipment.
Belgium, Bulgaria, Estonia, Greece, Spain, France, Croatia, Italy, Cyprus, Latvia, Lithuania, Hungary, Poland, Portugal, the Czech Republic, Romania, Slovakia and Finland have called for loans amounting to €127bn, the European Commission said on Wednesday (30 July).
The commission is preparing for more requests, reportedly including Denmark. Requests can be submitted by member states until 30 November.
Ukraine, whose defence industry has grown considerably since 2022 and is expected to benefit from more Western investment under the initiative, welcomed the move.
“Ukraine welcomes this important milestone and stands ready to actively contribute to joint efforts under SAFE as an integral part of Europe’s modern security and defence architecture,” said Ukraine’s defence minister Denys Shmyhal.
Andrii Sybiha, Ukraine’s foreign affairs minister, was even clearer, arguing that his country expects EU countries to use SAFE funds to invest in Ukraine's defence, which he said is “a cost-effective investment in Europe's long-term peace and security”.
“SAFE is a symbol of our collective commitment to strengthen our defence readiness,” said EU defence commissioner Andrius Kubilius.
Poland has asked for more money than any other country. Polish defence minister Władysław Kosiniak-Kamysz said on Tuesday that Warsaw has identified defence projects worth around €45bn.
“Obtaining these funds is a tangible investment in the security and development of our defence industry,” he said.
But the final distribution of funds will depend on how many applications there are and how the commission decides to distribute the funds.
The European Parliament has threatened a lawsuit, arguing that MEPs have been sidelined by the EU Commission on its plans for €150bn in loans to boost EU defence production, based the regulation on article 122.
The article allows the commission and the council, representing member states, to leave the European Parliament in the dark.
This year, we turn 25 and are looking for 2,500 new supporting members to take their stake in EU democracy. A functioning EU relies on a well-informed public – you.
Elena is EUobserver's editor-in-chief. She is from Spain and has studied journalism and new media in Spanish and Belgian universities. Previously she worked on European affairs at VoteWatch Europe and the Spanish news agency EFE.
Elena is EUobserver's editor-in-chief. She is from Spain and has studied journalism and new media in Spanish and Belgian universities. Previously she worked on European affairs at VoteWatch Europe and the Spanish news agency EFE.