The EU needs more than €150 billion: Brussels seeks additional defense funding — Bloomberg
8 February 02:09
The European Union is exploring options for additional defense funding after the initial €150 billion SAFE program comes to an end soon.
This was reported by "Komersant Ukrainian" with reference to Bloomberg.
According to sources, discussions are at an early stage, as the European Commission is still allocating funds from the current lending program. Officials expect that due to discrepancies between countries’ requests and final contracts, several billion will remain in the fund. This issue is currently being worked on.
But once the money runs out this spring, the European Commission will assess the process and consider another round of funding, which could potentially include a second lending program.
These negotiations reflect the EU’s desire to rapidly increase local defense production to protect against Russia’s threatening policies, as well as President Donald Trump’s desire to reduce US security commitments in Europe.
What preceded it
Last year, the EU created a lending program to encourage joint defense procurement and simplify the process of moving military equipment across the continent. The program was named SAFE.
The plan envisaged the European Commission raising funds on the capital markets and distributing them in the form of loans to countries for the purchase of specific goods that the continent lacks. These include missiles, ground equipment, and missile defense systems.
Initially, the capitals of EU countries submitted applications for €190 billion, but then the European Commission approved about €150 billion and asked the countries to develop spending plans.
As of now, the EU executive is reviewing these plans and distributing the money in the form of long-term preferential loans. In recent days, the European Commission has approved plans for 19 countries, but several remain unimplemented.
“The Commission is currently evaluating the national SAFE plans of the three remaining countries,” said Commission spokesman Thomas Renier.
Strengthening Europe’s defense
In October, it was announced that EU officials had approved the allocation of €1.5 billion to strengthen Europe’s defense capabilities in connection with the war in Ukraine.
This involves providing funding in the form of grants until 2027, with a fifth of the above amount earmarked for defense cooperation with Ukraine.
