EU Countries Express Interest in Defense Loans
On Wednesday, the European Commission announced that Belgium, Bulgaria, Cyprus, Czech Republic, Estonia, Spain, Finland, Hungary, Lithuania, Slovakia, Latvia, Croatia, Poland, Greece, Portugal, Romania, France, and Italy have shown interest in acquiring loans for defense procurement. This initiative allows the EU to borrow on behalf of its 27 member states, reports 24brussels.
The participating countries outlined specific minimum and maximum borrowing amounts they plan to request later this year. This preliminary step enables the EU executive to engage financial markets for necessary funding.
While the Commission did not disclose individual figures for each country, Polish Deputy Prime Minister Władysław Kosiniak-Kamysz revealed on X that Poland is seeking €45 billion, potentially the largest request among the nations involved.
EU defense commissioner Andrius Kubilius commented, “The strong interest in SAFE, with at least €127 billion in potential defense procurements, demonstrates the EU’s unity and ambition in security and defense.”
The collective purchasing strategy through SAFE is expected to yield cost savings for countries, enabling them to obtain weapons at lower prices than if they acted independently. Furthermore, these loans can be repaid over a 45-year term. Allies of Ukraine have also indicated plans to utilize this framework to supply armaments to the war-affected nation.
The Commission noted that the Tuesday deadline for expression of interest is merely preliminary, stating that countries can still participate beyond this date. However, formal loan requests and intended defense projects must be submitted by the final deadline of November 30.
