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Türkiye to push for access to EU’s $170B defense fund, urges easing of spending rules

A man stands next to flags of the European Union and Türkiye at the headquarters of the European Commission in Brussels, Belgium, July 25, 2017. (AFP Photo)
A man stands next to flags of the European Union and Türkiye at the headquarters of the European Commission in Brussels, Belgium, July 25, 2017. (AFP Photo)
June 05, 2025 10:09 AM GMT+03:00

Türkiye will press European allies planning to sharply increase defense spending to ease restrictions that currently require most funding to be spent within the EU, Defense Minister Yasar Guler told Reuters ahead of a NATO meeting.

The European Union has approved creating a €150 billion ($170 billion) EU defense fund called the Security Action for Europe (SAFE) scheme to boost the defense industry. However, current regulations mandate that 65% of projects must be funded by firms in the EU bloc, the broader European Economic Area, or Ukraine.

In written answers to Reuters questions, Guler said such restrictions would exclude non-EU countries like Türkiye from Europe's defense and security architecture, calling this "an issue that cannot be discussed only within the EU."

BRUSSELS, BELGIUM - JUNE 04: Turkish Defense Minister Yasar Guler attends the Ukraine Defense Contact Group meeting held at NATO Headquarters in Brussels, Belgium on June 04, 2025. The meeting, co-hosted by Germany and the United Kingdom, gathered defense officials from allied nations. ( Dursun Aydemir - Anadolu Agency )
BRUSSELS, BELGIUM - JUNE 04: Turkish Defense Minister Yasar Guler attends the Ukraine Defense Contact Group meeting held at NATO Headquarters in Brussels, Belgium on June 04, 2025. The meeting, co-hosted by Germany and the United Kingdom, gathered defense officials from allied nations. ( Dursun Aydemir - Anadolu Agency )

Türkiye offers advanced military capabilities

Defense Minister Guler emphasized that Türkiye, which has NATO's second-largest army after the United States, possesses advanced capabilities that would be valuable to allies planning major new defense spending.

"Allies need to spend not only more, but also smarter—and there is a need for more cooperation than ever before," Guler said when asked about President Trump's call for NATO members to increase defense spending to 5% of economic output.

Türkiye wants to "build the security of the future together" with the EU and would continue working with "open-minded and visionary European allies within or outside SAFE," he added.

The defense minister highlighted Türkiye’s strengths in drones, air defense, naval systems, armored vehicles, land platforms, electronic warfare, radar systems, and missile and ammunition production.

These technologies, Guler noted, support the need for allies to use defense budgets more strategically and in greater cooperation.

KIRSEHIR, TURKIYE - APRIL 10: Snipers of Turkish Gendarmerie Commando Special Public Order Command carry out operations in air, land, and water with specialized equipment after undergoing the challenging training and adapting to all weather and terrain conditions in Kirsehir, Turkiye on April 10, 2025. The snipers, who adapt to environmental conditions in all weather conditions and in unstable areas, successfully fulfill operations against targets in air, land and water. ( ?smail Aslanda? - Anadolu Agency )
KIRSEHIR, TURKIYE - APRIL 10: Snipers of Turkish Gendarmerie Commando Special Public Order Command carry out operations in air, land, and water with specialized equipment after undergoing the challenging training and adapting to all weather and terrain conditions in Kirsehir, Turkiye on April 10, 2025. The snipers, who adapt to environmental conditions in all weather conditions and in unstable areas, successfully fulfill operations against targets in air, land and water. ( ?smail Aslanda? - Anadolu Agency )

Greek opposition creates additional barriers

Greece, Türkiye's longstanding regional rival, has demanded that Ankara lift a 30-year-old war threat over territorial waters as a condition for accessing EU defense funds.

Guler called such demands a mistake, stating they amount to "involving multilateral platforms in bilateral disputes."

F-35 sanctions discussion expected

The defense minister also expressed hope that a potential meeting between Presidents Donald Trump and Recep Tayyip Erdogan could yield progress in lifting U.S. sanctions that expelled Türkiye from the F-35 fighter jet program.

Ankara's defense cooperation with NATO allies has been hampered by U.S. sanctions imposed over Türkiye's decision to purchase Russian S-400 air defense systems, resulting in expulsion from the U.S.-led F-35 program as both buyer and manufacturer.

A potential meeting between Erdogan and Trump, leveraging their close personal relationship, could "breathe new life" into bilateral defense ties and help lift sanctions, Guler suggested.

Although Ankara would not abandon the S-400 systems, lifting sanctions would allow consideration of returning to the F-35 project, he indicated.

Türkiye to push for access to EU’s $170B defense fund, urges easing of spending rules
Türkiye to push for access to EU’s $170B defense fund, urges easing of spending rules

SAFE program details and structure

The SAFE initiative provides EU member states with up to €150 billion in loans backed by the EU budget to boost defense capabilities through common procurement.

The program offers long-maturity loans with a maximum duration of 45 years and a 10-year grace period for principal repayments, making them more cost-effective than national borrowing due to the EU's high credit rating.

The loans support common procurement in seven priority areas:

  • Air and missile defense
  • Artillery systems
  • Missiles and ammunition
  • Drones and anti-drone systems
  • Strategic enablers and critical infrastructure protection
  • Military mobility
  • Cyber, artificial intelligence and electronic warfare

Currently, EEA/EFTA countries and Ukraine can participate in common procurements but cannot receive loans. Additional participation may include acceding countries, candidate countries, and other third countries with EU Security and Defense Partnerships.

The program represents the EU's first major initiative to increase investment in European defense capabilities amid an increasingly challenging security environment and uncertain U.S. security commitments.

June 05, 2025 10:09 AM GMT+03:00
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