Eighteen countries request €127 billion in EU loans to boost defense

Eighteen EU countries have requested €127 billion in low-interest loans from the European Commission to strengthen defense capabilities and potentially supply arms to Ukraine, as part of the bloc’s new Security Assistance Facility for Europe (SAFE).

Eighteen countries have applied for €127 billion in cheap loans from the European Commission by Tuesday’s deadline, aiming to bolster their defense sectors and potentially support Ukraine with weaponry. The requests represent a significant endorsement of the Security Assistance Facility for Europe (SAFE), a loans-for-weapons scheme that offers up to €150 billion in low-interest loans.

SAFE is part of the Commission’s wider ReArm Europe program, launched in March to reduce the European Union’s long-standing military dependence on the United States.

In a statement on Wednesday, the Commission listed Belgium, Bulgaria, Cyprus, Czech Republic, Estonia, Spain, Finland, Hungary, Lithuania, Slovakia, Latvia, Croatia, Poland, Greece, Portugal, Romania, France, and Italy as countries expressing interest in the loans.

Each country specified a minimum and maximum loan amount, with more formal requests expected later in the year. The arrangement allows the EU executive to borrow money on behalf of its 27 member states.

While the Commission did not disclose individual country figures, Poland’s Deputy Prime Minister Władysław Kosiniak-Kamysz shared on X that Warsaw requested €45 billion, likely the highest single request.

“The strong interest in SAFE, with at least €127 billion in potential defence procurements, demonstrates the EU’s unity and ambition in security and defence,” said EU Defense Commissioner Andrius Kubilius.

By pooling their purchases through SAFE, countries can secure better prices than if they acted alone, with the added benefit of repaying the loans over a 45-year period. Ukraine’s top allies have also indicated they intend to use the scheme to deliver armaments to Ukraine.

The Commission emphasized that Tuesday’s deadline was a “soft deadline” and countries can still apply. Formal loan requests and project details must be submitted by November 30.

‍