Numerous European Union member states, totaling 18, are seeking €146 billion in EU-backed loans to strengthen their defense procurement efforts. These nations, including Spain, Italy, Greece, and Hungary, aim to access these funds through Security Action for Europe (SAFE).
SAFE, a financial tool created by the EU in May, is designed to help member states enhance their defense spending and support the European defense industry. The European Commission’s statement indicates that this interest allows leadership to begin securing funds from capital markets.
EU member states and countries with defense procurement agreements with EU nations are eligible for SAFE loans. Supported projects must involve common procurement, including at least one member state and a member state benefiting from a loan, as well as Ukraine or other European Economic Area countries. A key condition dictates that no more than 35% of component costs can originate from outside the EU, Ukraine, or EEA nations.
The deadline for submitting a formal SAFE loan request is November 30th.
