EU States Seek $147B Under Defense Loan Scheme
The European Commission said Wednesday that 18 EU states are requesting loans worth at least 127 billion euros ($147 billion) under a new scheme to help ramp up defense spending.
The program is a key part of the EU’s push to boost weapons purchases as Europe rushes to rearm in the face of the threat from Russia.
The SAFE plan – worth up to 150 billion euros ($171 billion) – was launched in May to enable member states to get cheaper loans backed by the EU’s central budget.
“The strong interest in SAFE, with at least 127 billion euros in potential defense procurements, demonstrates the EU’s unity and ambition in security and defense,” EU defense commissioner Andrius Kubilius said.
Among the countries that have expressed interest in the program are EU heavy hitters France, Spain, Italy, and Poland.
The program remains open for final applications until the end of November, and Brussels hopes the final amount requested will rise further.
The rush for loans comes as NATO’s European members, under pressure from US President Donald Trump, have signed up to ambitious new spending targets.
The commitment made at NATO’s June summit in The Hague was to allocate 3.5 percent of GDP to core military spending and an additional 1.5 percent to broader security by 2035.
Beyond the SAFE loan scheme, the EU has also eased its budget rules to allow countries to spend more freely on defense.
The program has strict requirements to ensure that the bulk of the money must be spent on weapons made in the EU in a bid to bolster the continent’s defense industry.
