Eight EU Countries To Receive Loans Under Safe Programme For Rearmament - EU Commission

MOSCOW, Jan 16 (Bernama-Sputnik/RIA Novosti) -- The European Commission has approved the national defence plans of eight EU countries under the Security Action for Europe (SAFE) loan instrument for rearmament, Sputnik/RIA Novosti reported.

"The European Commission has endorsed the national defence plans of eight Member States, marking a milestone in Europe's push to strengthen its security. The Commission submitted a proposal to the Council to approve financial assistance for Belgium, Bulgaria, Denmark, Spain, Croatia, Cyprus, Portugal and Romania," the Commission said in a statement on Thursday.

The Council has four weeks to make implementing decisions, the statement read, adding that following its approval, the Commission will finalise the loan agreements, with the first disbursements expected in March 2026.

In May, EU countries agreed to establish the SAFE instrument, designed to attract up to €150 billion (US$174.1 billion) to boost arms production. On August 29, EU Commission President Ursula von der Leyen announced that 19 EU member states are participating in the programme.

In September, the European Commission said that the SAFE programme will provide long-term, low-cost loans to help countries procure defence equipment. The mechanism reportedly includes a 10-year grace period for loan repayments, competitive interest rates and the possibility of concluding bilateral agreements with third countries to extend eligibility.

--BERNAMA-SPUTNIK