Bulgaria and Latvia have received their first payments under the EU’s Security Action for Europe (SAFE) defence instrument, totalling more than €1 billion.
Bulgaria received €489.3 million and Latvia €524.7 million, representing 15% of their total allocations of €3.3 billion and €3.5 billion respectively, the European Commission announced on Friday.
SAFE is a €150 billion loan programme for EU member states, with funding focused mainly on joint procurement of ammunition, missiles, air defence and ground combat systems produced within the EU.
SAFE forms part of the European Commission’s ReArm Europe/Readiness 2030 plan, which it said is intended to unlock more than €800 billion in defence investment across the bloc.
What the SAFE payments are for
The Commission said the pre-financing will support Bulgaria in accelerating priority defence investments and modernising its military capabilities.
“These first SAFE payments” will help Bulgaria and Latvia “accelerate key defence investments”, Commissioner for Defence and Space Andrius Kubilius stated.
The Commission said the payment was made after required procedural steps were completed, and that further payments will follow once agreed milestones and implementation requirements are met.
SAFE is financed through EU borrowing on financial markets, enabling long-duration loans to member states on terms that benefit from the EU’s credit rating.
