EU Greenlights Debt Initiative to Speed Up Defense Spending
(MENAFN) EU ambassadors have given their approval to a €150 billion ($169 billion) debt initiative aimed at accelerating the bloc’s military buildup. The SAFE (Support for Ammunition, military Financing and European defense) program was officially announced on Wednesday by the Polish presidency of the EU Council.
This deal enables EU countries to bypass traditional European Parliament procedures, allowing members to access low-interest loans for military purchases, including drones, ammunition, and air defense technologies. The scheme is also open to participation from non-EU nations such as the UK and Ukraine.
According to Euronews, some EU members are exploring the use of these loans to boost military aid to Kiev.
Under the program’s rules, a minimum of 65% of any defense system’s components must be manufactured in the EU, Ukraine, or within the European Economic Area/European Free Trade Association. The remaining 35% may be sourced from other countries.
The debt measure comes at a time when several EU nations—including France, Germany, and Belgium—have reduced social spending, pointing to fiscal shortfalls and growing debt as the reason.
In a statement on X, the Polish presidency described SAFE as the “first major EU programme to increase investment in European defense capabilities,” noting it will take effect following formal adoption by the EU Council on May 27.
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