Brussels – EU ambassadors gave the green light to SAFE this morning (May 21), the instrument that will allow raising up to €150 billion in loans for defense spending, backed by the EU budget. A key part of Ursula von der Leyen’s European rearmament plan, which aims to mobilize €800 billion over four years, the fund is now one step away from being established with only the final approval from the ministers of the 27 member states, which is expected on Tuesday, May 27, pending.
“The more we invest in equipping our armies, the more we will deter those who wish to harm us,” said the Polish presidency of the EU Council, announcing the agreement. Diplomatic sources spoke of “neither obvious nor easy” compromises that made it possible to overcome resistance from some capitals and that “will ensure a fair distribution of loans among Member States.”
Von der Leyen made very clear that with the use of the emergency procedure, the priority for the entire Rearm Europe package (which effectively sidelines the Parliament’s co-legislative role) was to act quickly. Sixteen countries have already requested to activate the Stability and Growth Pact’s safeguard clause to support additional defense spending — the other tool made available by the European Commission. European Council President. On X, Costa said this marks another “important step toward a stronger Europe,” which “delivers on the commitments made by EU leaders in March, helping Member States to invest jointly in European defense and to strengthen our common security.”
SAFE aims to raise up to €150 billion in capital markets, which will be disbursed in the form of direct loans to member states that request them based on national plans. It provides for simplified and accelerated joint procurement procedures and two categories of eligible products, diplomatic sources explain. On one side, ammunition and missiles, artillery systems, ground combat capabilities and related support systems, small drones and anti-drone systems, critical infrastructure protection systems, and military mobility systems. On the other hand, air and missile defense systems, surface and underwater maritime capabilities, drones, strategic airlift and aerial refueling systems, space-based resources and services, and artificial intelligence systems.
Regarding eligibility criteria, the “most controversial” aspect of the discussion was that the Member States reportedly insisted on giving “particular attention” to small and medium-sized enterprises (SMEs). On one of the most sensitive issues — the ‘Buy European’ clause — it was decided that the cost of components from third countries, EFTA states, or Ukraine must not exceed 35% of the estimated cost of the final product’s components. Joint procurement will also be open to EU candidate countries and third countries with which the Union has concluded security and defense partnerships. As for the United States and pressure from Trump for Brussels to buy more US-made military equipment, a provision “to strengthen the transatlantic dimension and ensure complementarity with NATO” was reportedly added, sources explained.
English version by the Translation Service of Withub
