EU approves €150 billion rearmament loan

The text for a €150 billion loan programme to rearm, finalised by EU member states earlier this month, received final approval on Tuesday. Backed by the EU’s central budget, the SAFE (Security Action for Europe) loan was proposed by Brussels in early March and aims to bolster European defences in the face of Russia and the increasing unreliability of the US. It is the first large-scale defence investment programme at the EU level and, according to France’s Europe minister, Benjamin Haddad, it asserts the principle of European preference to support its industries, reduce its dependencies, and strengthen its strategic autonomy. The SAFE borrowing scheme is backed by the EU’s central budget and forms part of a package of measures that could potentially unlock up to €800 billion in defence spending.