Estonia has received €351.6 million in its first payment under the EU’s Security Action for Europe (SAFE) defence loan programme, equal to 15% of its €2.3 billion allocation.
SAFE is a €150 billion EU financial instrument that provides loans to member states, with funding primarily for joint procurement of ammunition, missiles, air defence and ground combat systems produced within the EU, the European Commission noted in its release on Wednesday.
The scheme forms part of the Commission’s ReArm Europe/Readiness 2030 plan, which the institution said is intended to unlock more than €800 billion in defence investment across the bloc.
Andrius Kubilius, the European Commissioner for Defence and Space, said the payment would help Estonia move quickly on priority defence investments and strengthen readiness and resilience.
How the SAFE funding works
The pre-financing payment was made after “all required procedural steps” were completed, and further payments will follow once agreed milestones are met, the Commission said.
SAFE is financed through EU borrowing on financial markets, allowing long-duration loans to requesting member states.
The loans benefit from the EU’s credit rating and will be repaid by the countries that receive them, the Commission said.
