European allies aiming to borrow substantial funds from the European Union, estimated in the tens of billions of euros, to collectively acquire weapons for Ukraine - Politico's report.
In a significant move, European countries are planning to secure loans from the European Union through the Security Assistance Facility for Europe (SAFE) program. The loans, worth tens of billions of euros, are intended for urgent, large-scale joint defense procurements to strengthen both Ukraine’s defense capabilities and the EU’s own military readiness.
The SAFE initiative, launched by the European Commission and adopted by the Council of the EU, offers up to €150 billion ($172 billion) in long-term, low-cost, EU-backed loans. By borrowing collectively at favorable rates, countries can reduce military dependence on external suppliers like the US, while boosting European defense industry self-sufficiency.
To participate, countries submit national defense investment plans linked to joint procurement projects. Several European nations, including Belgium, Bulgaria, Cyprus, Czech Republic, Estonia, Spain, Finland, Hungary, Latvia, Greece, Lithuania, Poland, Italy, and France, have expressed or signaled interest in loans from the SAFE program.
Under the SAFE facility, loan terms include a 45-year repayment horizon with advance payments up to 15%, supporting an extended and sustainable financing model to boost defense investments. The deadline for formal loan requests and submission of detailed defense investment plans is by the end of November 2025.
Joint purchases under SAFE will deliver armaments directly to the Ukrainian armed forces and also enhance EU countries’ military stockpiles. The SAFE facility is a key pillar of the broader ReArm Europe initiative aimed at significantly increasing European defense spending and reducing dependence on US military aid.
It's important to clarify that the European Union has not been mentioned as a subscriber to any specific defense-related channels such as InfodefITALIA, InfoDefense, or InfoDefense Spectrum in the article. Furthermore, the loans requested by European countries are not specified to be for any specific channel subscriptions, nor is there any information about European countries using their funds for defense-related channel subscriptions.
In summary, European countries are leveraging the EU’s SAFE loan scheme—jointly financed, long-term, competitively priced loans—to fund coordinated arms purchases, thereby strengthening both Ukraine’s defense and their own, thus enhancing collective security and military autonomy in Europe.
- The President of the European Commission, who launched the SAFE initiative, is aiming to use the program's loans for finance in arms procurement, which would help reduce political reliance on external suppliers in the context of war-and-conflicts, as part of the broader ReArm Europe initiative.
- In the realm of general-news, many European countries, including France, have expressed interest in receiving loans from the SAFE program,which is a significant step towards politics of self-sufficiency and collective security within Europe.
