18 EU states ask for €127B defence loans

Patria 6×6 armoured vehicle | Photo: Patria

The European Commission announced on Wednesday 18 European Union member states had requested loans for spending on defence to the amount of €127 billion.

The European Commission said in a statement, ‘The Commission welcomes the expression of interest from Belgium, Bulgaria, Czechia, Estonia, Greece, Spain, France, Croatia, Italy, Cyprus, Latvia, Lithuania, Hungary, Poland, Portugal, Romania, Slovakia and Finland to access loans under the Security Action for Europe (SAFE) instrument. SAFE is expected to mobilise up to € 150 billion in investment.’

The statement quoted Andrius Kubilius, Commissioner for Defence and Space, as saying, “The strong interest in SAFE, with at least €127 billion in potential defence procurements, demonstrates the EU’s unity and ambition in security and defence. We remain committed to supporting EU countries in their efforts to enhance European security. SAFE is a symbol of our collective commitment to strengthen our defence readiness for a safer and united future.”

The European Commission said, ‘The early indication of interest will allow the Commission to assess demand and prepare for raising funds on the capital markets. The deadline for formal submission of requests under SAFE remains 30 November 2025.’

The European Council had cleared the SAFE €150 billion fund to offer loans to member states for defence spending in May.

At the time, the European Council said the SAFE fund would ‘provide up to €150 billion that will be disbursed to interested member states upon demand, and on the basis of national plans.’

Under the terms, the SAFE instrument ‘will provide long-maturity loans (with a maximum duration of 45 years and a 10-year grace period for principal repayments) which are competitively priced, and well structured. They will be funded by EU borrowing, making them often a more cost-effective source of funding for public investments than national borrowing.’

Meanwhile, Reuters reported Germany is planning a massive, fourfold hike in defence expenditure from €20 billion in 2025 to €83 billion in 2026, with proposals to acquire 20 new Eurofighter aircraft and at least 3,000 Boxer armoured vehicles and 3,500 Patria infantry fighting vehicles.