BRUSSELS — A total of eighteen European nations have put forth a request for €127 billion in low-interest loans from the European Commission, aiming to bolster their defense capabilities and potentially procure arms for Ukraine. This initiative marks a significant achievement for the Commission, as countries from Estonia to Portugal expressed their interest in participating in its Security Assistance Facility for Europe (SAFE) loan program, which has a total allocation of up to €150 billion in affordable loans.
Strengthening European defense
This initiative is part of a larger strategy known as the ReArm Europe program, introduced by the Commission in March, which seeks to diminish the EU’s longstanding military reliance on the United States. In a recent statement, the Commission identified the countries that have shown interest in the loan scheme: Belgium, Bulgaria, Cyprus, Czech Republic, Estonia, Spain, Finland, Hungary, Lithuania, Slovakia, Latvia, Croatia, Poland, Greece, Portugal, Romania, France, and Italy.
In their submissions, these nations outlined the minimum and maximum amounts they plan to formally request for borrowing later this year. This process will enable the EU executive to access financial markets and borrow on behalf of all 27 member states. While specific figures for individual countries have not been disclosed, Poland’s Deputy Prime Minister Władysław Kosiniak-Kamysz revealed on X that Poland has requested €45 billion, which is likely the largest individual request.
EU’s collective commitment to security
“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,”
stated EU’s defense commissioner, Andrius Kubilius. The SAFE initiative allows countries to collaboratively purchase weapons, enabling them to secure better pricing than if they acted independently. Additionally, the loans can be repaid over a generous timeframe of 45 years, making it financially feasible for member states. Furthermore, Ukraine’s major allies have indicated that they plan to utilize this scheme to provide military support to the war-torn country.
The Commission has clarified that the deadline for submissions on Tuesday was merely a “soft deadline,” assuring that late submissions will be accommodated. Nations must formally present their loan requests along with detailed defense projects they intend to execute under SAFE before the final deadline on November 30.