EU finalises $225 billion in defence loans, with Poland taking largest share
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Polish soldiers on Leopard 2PL tanks taking part in a military parade in Warsaw on Polish Armed Forces Day, in August 2025.
PHOTO: REUTERS
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- The EU's €150 billion Safe scheme loans are fully allocated across 19 countries to boost defence capabilities against threats like Russia.
- Poland receives the largest share (€43.7 billion), followed by Romania (€16.7 billion), with Hungary and France receiving €16.2 billion each.
- Participating nations must detail investment plans by November for Commission assessment and disbursement starting Q1 2026, featuring a 10-year grace period.
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BRUSSELS – The European Union’s €150 billion (S$225 billion) in cheap loans for defence projects have been fully taken up by a total of 19 EU countries, with Poland securing the biggest part of the loans, the European Commission said on Sept 9.
The scheme, called Security Action For Europe (Safe), is a joint borrowing scheme, backed by the EU budget to boost the EU’s defence capabilities, address critical gaps, and buy defence products together to prepare for the threat of military aggression from Russia or Belarus.
“There was a lot of scepticism about possible low interest. Now, we see the contrary. The interest from the member states has been a resounding success. Not only Eastern frontier countries are interested,” EU Defence Commissioner Andrius Kubilius told a news conference.
Poland will get the lion’s share of the total at €43.7 billion, with Romania in second place with €16.7 billion.
Hungary and France will get €16.2 billion each, Italy €14.9 billion, Belgium €8.3 billion, Lithuania €6.4 billion, Portugal €5.8 billion and Latvia €5.7 billion, among others.
Also participating in the loans are Bulgaria, Croatia, Cyprus, Czechia, Denmark, Estonia, Finland, Greece, Slovakia and Spain.
Eight EU countries did not apply for the loans because they can borrow at comparable or better rates themselves, the Commission said.
The 19 EU countries will now prepare their investment plans, to describe how they will spend the money and present them by the end of November. The Commission will then assess the plans and make the first disbursements in the first quarter of 2026, Mr Kubilius said.
The scheme offers a 10-year grace period for loan repayment, low interest rates and makes possible agreements with countries outside the EU, like Norway, Britain or Turkey, who have defence equipment the EU is interested in. REUTERS
