EU ambassadors approve €150 billion SAFE fund for Europe, Ukraine arms
EU ambassadors approved the €150 billion ($168.3 billion) Security Action for Europe (SAFE) fund to provide loans for defense procurement to EU members and Ukraine, with final approval expected on May 21, public broadcaster Suspilne and Reuters reported on May 19.
The SAFE fund, financed through joint EU borrowing, will offer loans to EU countries and select others, including Ukraine, for projects strengthening defense capabilities and the European arms industry.
The fund’s latest regulation, sent to the 27 EU capitals overnight into May 19, awaits formal approval at a non-debatable meeting on May 21, a Suspilne source said.
European Commission President Ursula von der Leyen announced SAFE during the “White Paper” presentation on European defense and the “ReArm Europe Plan/Readiness 2030” plan. She highlighted a “chronic” investment deficit and inefficient military spending in Europe, with the White Paper outlining solutions to address critical gaps.
The broader €800 billion ($901.3 billion) ReArm Europe Plan/Readiness 2030 plan aims to increase defense spending, issue loans for arms purchases, and mobilize private capital.