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The European Union’s €150 billion loans-for-arms program ($175,28 billion) has been fully subscribed after 19 member states, including France, Poland, Italy and Spain, applied for funding, European Commission President Ursula von der Leyen said Friday.
The scheme, known as the SAFE project, enables the EU to borrow against its budget to finance joint military purchases, particularly in areas identified as critical gaps, such as air and missile defense, cyber capabilities and drones.
Proposed earlier this year, the initiative comes as part of efforts to significantly boost defense spending in response to Russia’s war on Ukraine and pressure from U.S. President Donald Trump, who has demanded that European allies spend more on arms.
NATO members in Europe have also pledged to raise defense expenditure to 5% of GDP within the next decade.
“We have reached full subscription. We are delivering the capabilities that Europe needs most,” von der Leyen said during a visit to Riga alongside Latvian Prime Minister Evika Siliņa.
She noted that many states plan to use the funds to supply Ukraine, calling it “a true European success.”
EU officials said the commission will now assess bids from capitals and determine how to distribute the funds, with initial disbursements expected later this year.
The project also prioritizes EU-made defense products, restricting the use of non-EU components to reduce reliance on U.S. weapons.
Von der Leyen introduced the loan package together with a proposal exempting defense spending from EU deficit rules.
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