Croatia has received €255 million from the EU under the Security Action for Europe (SAFE) defence instrument, the first payment from a total allocation of €1.7 billion.
The payment represents 15% of Croatia’s total SAFE allocation and was made as pre-financing after procedural steps were completed, the European Commission reported on Friday.
SAFE is a €150 billion EU loan scheme for member states, with funding focused on joint procurement of ammunition, missiles, air defence and ground combat systems produced within the EU.
The instrument forms part of the European Commission’s ReArm Europe/Readiness 2030 plan, which it says is intended to unlock more than €800 billion in defence investment across the European Union.
What the funding is for
The pre-financing will support Croatian defence projects and upgrades to military capabilities, the Commission said.
Andrius Kubilius, the EU Commissioner for Defence and Space, stated that the funding would help Croatia accelerate defence investments and modernise its armed forces.
Further payments are expected to follow as agreed milestones are met.
SAFE is financed through EU borrowing on financial markets, which the Commission said allows loans with long durations and terms reflecting the EU’s credit rating, with repayments to be made by the member states that receive the loans.
