EU Greenlights USD87B Defense Loans for Eight Member States
Estonia, Greece, Italy, Latvia, Lithuania, Poland, Slovakia, and Finland will gain access to preferential long-term financing after Brussels validated their military modernization blueprints, officials announced.
The approval marks the second deployment phase of the SAFE framework, designed to fast-track arms purchases and combat preparedness across the bloc through subsidized borrowing mechanisms.
"The Commission submitted a proposal to the Council to approve financial assistance for Estonia, Greece, Italy, Latvia, Lithuania, Poland, Slovakia and Finland," according to the official statement.
The package—preliminarily valued at approximately €74 billion ($87 billion) when unveiled last September—targets critical defense infrastructure upgrades while facilitating Ukraine's alignment with EU security architecture.
Brussels has forwarded its recommendation to the EU Council, which faces a four-week deadline to authorize implementation measures. Following council ratification, the Commission will negotiate bilateral loan contracts, with initial capital transfers projected for March 2026.
Reviews of additional member state defense proposals remain underway.
Launched May 27, 2025, as a cornerstone of the bloc's Readiness 2030 defense strategy, SAFE empowers governments to expand military expenditures through coordinated procurement from European manufacturers—enhancing equipment compatibility, supply chain reliability, and budget optimization.
Ukraine, EFTA/EEA members, and prospective EU candidates may also join procurement initiatives and industrial partnerships under the program's framework.
Legal Disclaimer:
EIN Presswire provides this news content "as is" without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the author above.
