EU’s €150 Billion Defence Loan Programme Fully Subscribed
All €150 billion in the EU’s SAFE defence loans programme has been applied for after requests from 19 member states, European Commission President Ursula von der Leyen announced on Friday. This significant milestone was revealed during a press conference in Latvia, where she described the development as a “true European success,” marking Denmark’s recent participation as a key factor, reports 24brussels.
As of the end of July, 18 EU nations had formally shown interest in obtaining defence loans under the Security Action for Europe (SAFE) initiative, with initial bids amounting to at least €127 billion. However, this figure reflected only the lower end of the countries’ requests, indicating a more substantial collective demand.
Countries are required to submit requests specifying both minimum and maximum loan amounts. The aggregated maximum bids from the countries exceed the total available funding, highlighting the strong demand among EU nations seeking to bolster their defence capabilities amid ongoing regional tensions.
Following von der Leyen’s announcement, the EU executive indicated that the total amount will be distributed among the participating nations, with final allocations determined by their respective plans and bid ranges. EU countries have until the end of November to detail how they intend to utilize their allotted funds.
This announcement comes after an earlier concern within the Commission that not all allocated funds for SAFE would be utilized. If the total sum had not been fully applied for, there were plans to repeat the application process the following year to allocate any remaining funds for new defence initiatives.
The Commission has emphasized that the SAFE funds can also be allocated to purchase weapons, including ammunition and missiles, specifically for Ukraine. “Many member states have indicated they will also use it [SAFE] to support the Ukrainian defence industry,” von der Leyen added.
While the detailed breakdown of allocations will be published in November, the support for Ukraine may have influenced Denmark’s decision to join the programme, considering their substantial contributions to Kyiv. This move reflects a growing commitment among EU member states to enhance their defence readiness while simultaneously aiding Ukraine amidst its ongoing conflict.
