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The European Union adopted a €150 billion ($170.45 billion) loan program Tuesday aimed at strengthening the bloc's defense capabilities through joint military procurement, marking the EU's first large-scale defense investment initiative.
The Security Action for Europe (SAFE) instrument will provide financial support to member states for investing in defense industrial production through coordinated purchasing agreements, according to a statement from the EU Council.
The program seeks to address critical gaps in military capabilities while boosting production capacity across Europe's defense sector. Officials emphasized the initiative's role in ensuring adequate defense equipment availability and enhancing overall regional security preparedness.
"We have adopted the first large-scale defence investment programme on the EU level," said Adam Szłapka, Poland's Minister for the European Union. "The more we invest in our security and defence, the better we deter those who wish us harm."
The financing mechanism extends beyond traditional EU boundaries, with Ukraine and European Economic Area members, including Iceland and Norway, eligible to participate under the same terms as EU member states. These nations will be permitted to join common procurement initiatives and supply defense materials to the program.
Procurement contracts include provisions limiting components from participating non-EU nations to no more than 35% of estimated costs, according to the council's announcement.
The program's scope could expand further to include acceding countries, EU candidates, potential candidates, and nations with existing Security and Defence Partnerships with the bloc, including the United Kingdom. Additional countries may gain access through future bilateral or multilateral agreements.
Council officials highlighted the program's potential to support Ukraine's ongoing conflict with Russia, providing another avenue for military assistance to the embattled nation while strengthening Europe's broader defense industrial base.
The SAFE instrument represents a significant shift toward coordinated European defense spending, reflecting growing concerns about regional security amid geopolitical tensions.
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