European Nations Line Up for Billions in EU Loans to Arm Ukraine
Several European Union member states are preparing to tap into a €150 billion EU loan facility to purchase weapons for Ukraine and bolster their own military capabilities, as the deadline to apply approaches on Tuesday.
The Gaze reports this, referring to Politico.
The initiative, known as the Security Assistance Facility for Europe (SAFE), was introduced by the European Commission in March as part of its broader “ReArm Europe” strategy. The scheme aims to enhance Europe’s defense industry and reduce the bloc’s long-standing reliance on U.S. military support.
According to EU defense spokesperson Thomas Regnier, Belgium, Bulgaria, Cyprus, Czech Republic, Estonia, Spain, Finland, Hungary, and Lithuania have already expressed interest in accessing the low-interest loans.
Other nations, including Latvia, Bulgaria, and Greece, are expected to submit applications by the midnight deadline.
France is also likely to participate, while Germany, Sweden, and the Netherlands are set to opt out.
Even non-borrowing states can still reduce procurement costs by participating in joint arms purchases under SAFE.
By pooling resources through SAFE, member states can secure bulk discounts on weaponry, which will then be delivered to Ukraine.
Greek Prime Minister Kyriakos Mitsotakis confirmed on Monday that Athens intends to request €1.2 billion in loans. Belgium, despite its high debt levels, is expected to seek between €7 billion and €11 billion.
The loans, repayable over 45 years with advance payments of up to 15 percent, will be financed through EU-level borrowing, leveraging the bloc’s triple-A credit rating to secure lower interest rates than individual nations could obtain on the market.
EU Defense Commissioner Andrius Kubilius stated that at least 20 countries are likely to request a combined total of up to €100 billion. The final figures will be known once the application window closes, though Brussels has indicated it will remain open to late applicants.
While wealthier countries like Sweden and Denmark remain wary of joint borrowing, nations with weaker fiscal positions see the program as an opportunity to access cheaper financing.
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