The ambassadors of the 27 EU Member States have reached a preliminary agreement on a financial instrument called ‘SAFE that will enable the European Commission to raise up to €150 billion to help member countries buy arms and ammunition jointly at low-interest loans.
Priority projects will focus on munitions, missiles, artillery, drones, anti-aircraft systems, critical infrastructure protection, military mobility, and cyber defence.
The programme aims to enhance collaboration among national militaries and boost the European defence industry. It has been agreed that components from third countries, such as the United States, should not exceed 35% of a final product’s cost.
The programme is, however, open to third countries with whom the EU has defence agreements, including Ukraine, Norway, and, as of Monday, the United Kingdom. Exact terms for participation and financial contribution will be established in a bilateral agreement.
The European Commission proposed SAFE at the end of March as part of a broader plan to strengthen European defence that also includes easing European budgetary rules to allow Member States to unlock up to €650 billion for investments in the coming years.
The preliminary agreement is expected to be confirmed by the ambassadors on Wednesday.
