Nine EU Nations Race to Secure USD173B Defense Loans
(MENAFN) Up to nine European Union countries have officially requested loans through the Security Action for Europe (SAFE) initiative, the European Commission confirmed Tuesday.
During a midday press update, spokesperson Thomas Regnier outlined the preliminary list of applicants: Belgium, Bulgaria, Southern Cyprus, Czechia, Estonia, Spain, Finland, Hungary, and Lithuania. This reflects the current status ahead of the soft application cutoff set for midnight.
A comprehensive and finalized roster of participating nations is expected to be released on Wednesday.
"This is an initial list. We're quite confident that the number will quite impressively increase still today," Regnier stated, emphasizing the Commission’s strong expectation that no fewer than 20 member states will submit applications for SAFE funding.
He also noted that Commissioner for Defense and Space, Andrius Kubilius, has received positive signals from national governments during recent talks, reinforcing these projections.
SAFE represents a €150 billion ($173 billion) financial tool designed to accelerate defense manufacturing and foster joint procurement among EU members.
Backed by EU-issued debt, the scheme provides long-term loans at competitive rates to promote collaborative defense initiatives. It prioritizes critical sectors such as ammunition, drones, and air defense systems, requiring at least 65% of weapon system components to be sourced from within the EU, Ukraine, or EEA/EFTA countries.
The program also permits limited involvement of third-party nations via bilateral agreements, aiming to strengthen EU defense capabilities and extend support to Ukraine.
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