EU Launches €150B SAFE Defense Fund, Aiming to Unlock €800B
The EU has launched its first coordinated funding plan for defense readiness, known as SAFE. Defense Commissioner Andrius Kubilius has confirmed that the allocation of €150 billion in low-interest loans is not final and a roadmap will be presented in October.
SAFE aims to unlock €800 billion in defense funding and strengthen the European defense industry. The program has received optional participation from 19 member-states, who have requested a total of €273.3 billion in personal loans. These loans come with a 40-year repayment period and are authorized at an interest rate lower than market rates.
Eastern European countries bordering Russia have sought the largest sums in SAFE personal loans. Poland, Romania, and Hungary are among those expected to receive significant allocations. Romania, for instance, is set to receive €16.7 billion. Other countries like France and Hungary are also expected to receive substantial amounts, with each receiving €16.2 billion. Italy will receive €14.9 billion. Greece, meanwhile, is expected to receive about €788 million, which it plans to use for air defense systems, naval vessels, and military mobility programs.
Germany, Denmark, and the Netherlands have opted out of SAFE, citing their ability to borrow at low interest rates independently. However, the EU aims to use the SAFE program to provide further support to Ukraine and strengthen European defense capabilities.
EU countries must submit detailed national investment plans by November to receive SAFE funding, with initial disbursements expected in early 2026. The final allocation and roadmap for the €150 billion in low-interest loans will be presented in October. The SAFE program is a significant step towards enhancing the EU's defense capabilities and fostering a more integrated European defense industry.
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