9 EU members express interest in defense loans

BRUSSELS

As many as nine EU members have formally expressed interest in receiving loans under the Security Action for Europe (SAFE) scheme, the European Commission said Tuesday.

Speaking at a midday briefing, spokesperson Thomas Regnier said the list, including Belgium, Bulgaria, Southern Cyprus, Czechia, Estonia, Spain, Finland, Hungary, and Lithuania, reflects the state of play ahead of the soft deadline set for midnight.

A full and formal list will be shared on Wednesday.

"This is an initial list. We're quite confident that the number will quite impressively increase still today," he said, adding that the European Commission remains "quite confident" that at least 20 member states will ultimately apply for SAFE loans.

Regnier added that Commissioner for Defense and Space Andrius Kubilius had received encouraging feedback from national governments during his discussions, further supporting the expectations.

SAFE is a €150 billion ($173 billion) financial instrument to boost defense production and joint procurement among EU member states.

Funded by EU borrowing, it offers competitively priced, long-term loans to support collaborative defense projects, focusing on priority areas like ammunition, drones, and air defense systems. At least 65% of weapon system components must originate from the EU, Ukraine, or EEA/EFTA countries.

SAFE also allows limited participation from third countries under bilateral agreements, aiming to enhance EU defense readiness and support Ukraine.