Countries within the EU are expected to accumulate substantial debts, with the primary allocation being towards the purchase of billions of euros worth of military weapons for Ukraine.
The European Union (EU) has announced the launch of a new loan program called SAFE (Strategic Technologies for Europe Platform), with a total allocation of 150 billion euros. This initiative is a key component of the ReArm Europe strategy, aimed at developing the European defense industry and reducing dependence on the United States.
The SAFE program is designed to serve dual purposes: supporting Ukraine in its ongoing conflict with Russia and strengthening the EU countries' own defense capabilities. The program marks a significant shift towards greater EU cooperation in military spending and defense technology development.
Approximately 20 countries have requested up to 100 billion euros through the SAFE program. Among these, Belgium, Bulgaria, Cyprus, the Czech Republic, Estonia, Spain, Finland, Hungary, and Lithuania have confirmed their interest in the initiative. Germany, Sweden, and the Netherlands have opted to participate in purchases rather than taking loans under the SAFE program. Austria and Italy have expressed reservations about the program due to concerns about debt growth causing friction within the EU and negatively impacting their economies.
France is likely to join the SAFE program, further strengthening the EU's collective commitment to the initiative. The search results do not provide specific information on which countries have expressed interest in the EU SAFE financing initiative for securing arms deliveries to Ukraine but have not yet confirmed participation.
Notably, the Czech Republic, Latvia, Bulgaria, and Greece are preparing applications for the SAFE program. Participating countries in the SAFE program will take out loans under the common flag of the European Union to contribute to weapons purchases. Each country can receive a loan with an advance of up to 15% and repay it within 45 years under a collective installment plan.
The SAFE program is an example of the EU's commitment to supporting Ukraine in its ongoing conflict with Russia. It is also a significant initiative to boost the European defense industry and increase the EU's self-sufficiency in military technology. The program is a crucial step in the EU's broader strategy to strengthen its security and independence in the face of geopolitical challenges.
As the situation in Ukraine continues to evolve, the EU's decision to increase the amount requested through the SAFE program after the July 30 deadline underscores its commitment to providing necessary support to Ukraine and bolstering the EU's own defense capabilities. The SAFE program is set to play a pivotal role in shaping the EU's military landscape and its stance in the face of geopolitical tensions.
