The majority of EU countries are requesting loans for military procurement from the EU’s SAFE arms financing programme, the bloc’s Defence Commissioner Andrius Kubilius told Euractiv on Thursday.
The SAFE lending mechanism, approved earlier this spring, is aimed at funding military purchases for EU countries, Norway and Ukraine included in the programme, and others – such as potentially the United Kingdom – mulling over whether to join as well.
“According to our informal evaluation, around of 20 member states will take loans – and that can be [a] very conservative evaluation,” the Lithuanian commissioner said, adding it “could be for around €100 billion, but it can be even more.”
Speaking with Euractiv just days before Tuesday’s first deadline to express interest in the €150 billion pot under the Security Action for Europe (SAFE) programme, Kubilius said there is “big appetite” for the fund.
However, Kubilius did to specify which specific countries have put in requests, or divulge just how much each capital is hoping to borrow.
It is understood that Belgium, Bulgaria, Cyprus, Czechia, Estonia, France, Ireland, Lithuania, Poland and Romania all are requesting funding. According to national sources, Austria, Finland, Slovakia remain unsure, while Germany and Sweden are expected to join broader procurement deals but not request the loans.
EU countries have until next week to signal their interest for the plan and say how much money they want to borrow via the EU, and then will have until November to decide on what to purchase with that cash.
In a letter from Kubilius to the EU countries seen by Euractiv, Kubilius called on the countries to use the money for joint purchases, even though they are allowed to go solo.i The Commission is also open to EU countries joining the programme at a later stage even if they miss the upcoming deadline.
(bts, jp)