EU Divides €150 Billion Defense Fund, with Poland Taking Lead

EU Divides €150 Billion Defense Fund, with Poland Taking Lead
Relocation of armored vehicles in Poland. Source: Polish Ministry of Defense
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The European Union has allocated €150 billion in long-term loans among member states to strengthen defense as part of the SAFE (Security Assistance for Europe) initiative.

This financial instrument is designed to support EU countries in accelerating their defense readiness by providing substantial investments in the development of the European defense industry. Special emphasis is placed on addressing critical capability gaps.

The SAFE program provides for up to €150 billion in long-term loans to states that submit relevant requests, intended for investments in defense capabilities.

The initiative has become the first pillar of a large-scale plan to rearm Europe, aiming to invest over €800 billion in defense spending across all EU member states.

The allocation for each member state is as follows:

  • Belgium: €8,340,027,698
  • Bulgaria: €3,261,700,000
  • Croatia: €1,700,000,000
  • Cyprus: €1,181,503,924
  • Czech Republic: €2,060,000,000
  • Denmark: €46,796,822
  • Estonia: €2,660,932,171
  • Finland: €1,000,000,000
  • France: €16,216,720,524
  • Greece: €787,669,283
  • Hungary: €16,216,720,524
  • Italy: €14,900,000,000
  • Latvia: €5,680,431,322
  • Lithuania: €6,375,487,840
  • Poland: €43,734,100,805
  • Portugal: €5,841,179,332
  • Romania: €16,680,055,394
  • Slovakia: €2,316,674,361
  • Spain: €1,000,000,000

One of the key conditions for participation in the program is a restriction on the origin of components. According to the rules, no more than 35% of component costs may be attributed to products from outside the European Economic Area or Ukraine.

SAFE also marks a new phase of EU cooperation with trusted third countries in the field of security and defense.

From the very beginning, Ukraine and the countries of the European Economic Area have been involved on equal terms with EU member states. This includes the right to participate in joint procurements and to place orders within their own defense industrial complexes.

Meanwhile, only member states have access to SAFE financial loans, while candidate countries and defense partners are eligible to participate exclusively in joint procurements.

Ukraine’s participation in the program creates new opportunities for its defense-industrial complex, allowing it to compete on equal footing with enterprises from EU member states.

Experts note that this approach will facilitate the integration of Ukrainian manufacturers into the European defense market. This, in turn, will enhance Ukraine’s ability to develop its own defense industry in partnership with the EU.

Thus, SAFE becomes an important tool not only for the rearmament of Europe but also for deepening Ukraine’s defense integration with European structures.

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