Twenty European Union member states have accessed the Union's defense loan facility, securing a collective €100 billion.
The European Union (EU) is gearing up for a significant boost in its defense capabilities, as at least 20 member states have expressed interest in using loans issued by the European Commission to fund defense projects, with an estimated total request of over €100 billion. This ambitious plan is a key part of the 'Readiness 2030' proposal, which includes the EU's SAFE (Supporting the Development of European Defence Industry) program.
Andrius Kubilius, the Commissioner for Defence and Space, has expressed his impression at the number of member states planning to request loans under the SAFE program. However, he did not specify which member states have notified their intention to use the scheme, although Latvia has publicly expressed interest.
The first disbursements under the SAFE program are expected early next year, and the EU member states have until 29 July to request financing under the Commission mechanism for defense projects. The EU's executive had planned to raise up to €150 billion on the markets through the SAFE scheme for member states to finance defense acquisitions together.
One of the advantages of using the SAFE program is that it will exempt member states from paying Value Added Tax (VAT) on purchases, which could potentially save billions of euros.
The SAFE instrument is part of the European Commission's ReArm Europe plan and includes a €150 billion "loans for arms" program. However, as of July 2023, there is no specific information available regarding which EU member states are participating in the defense loan program under the 'Readiness 2030' proposal. For detailed information on participating countries, it might be necessary to consult specific reports or announcements from the European Commission or participating member states directly.
This developing story is expected to see updates in the coming months as more information becomes available. Stay tuned for further developments.
- The ambitious 'Readiness 2030' proposal, which includes the EU's SAFE program for defense projects, has attracted interest from at least 20 member states who are planning to utilize loans from the European Commission for their defense objectives, potentially amounting to over €100 billion.
- As the European Union moves forward with its 'Readiness 2030' plan, one of the key advantages of the EU's SAFE program is that it offers member states exemption from Value Added Tax (VAT) on purchases, which could lead to significant savings in billions of euros.
