Overview

• The EU has agreed on SAFE (Security Action for Europe), a €150 billion low-interest loan facility over five years to fund joint acquisition of military equipment.
• Proposals are due within six months and funding will be disbursed in phases through 2030 after the commission evaluates each national project.
• Under ‘Made in Europe’ requirements, primary contractors must be headquartered in one of 32 participating states and foreign components cannot exceed 35 percent of a project’s value.
• Security partners such as the UK and Ukraine, along with EFTA members and EU accession candidates, can participate by teaming up with a borrowing member state.
• Germany is expected to forgo SAFE funding because it can secure more favourable terms on its national capital markets.