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    Home»Business & Economy»EU Approves Major Defence Loans to Strengthen Military Readiness
    Business & Economy

    EU Approves Major Defence Loans to Strengthen Military Readiness

    Rachel MaddowBy Rachel MaddowJanuary 26, 2026No Comments2 Mins Read
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    Eight Countries Receive SAFE Funding

    The European Commission has approved national defence investment plans from Estonia, Greece, Italy, Latvia, Lithuania, Poland, Slovakia and Finland under its €150 billion Security Action for Europe (SAFE) programme. These eight nations requested a total of €74 billion, with Poland alone accounting for €43.7 billion.

    SAFE is a key part of the EU’s Readiness 2030 plan, which aims to channel hundreds of billions of euros into European defence by the end of the decade. The initiative comes amid growing concerns from intelligence agencies that Russia could threaten another European country in the coming years. This marks the second round of approvals, following €38 billion allocated to Belgium, Bulgaria, Denmark, Spain, Croatia, Cyprus, Portugal and Romania earlier this month.

    Building Real Military Capability

    Defence Commissioner Andrius Kubilius described the latest approvals as a step toward turning Europe’s defence ambitions into concrete action. “We are no longer just drafting strategies; we are building a hard-power reality,” he said, emphasizing that the funding sends a clear message to both European defence industries and potential adversaries.

    In total, 19 EU member states have applied for SAFE funding, with provisional allocations agreed last September. National plans from Czechia, France and Hungary are still under review. EU ministers now have four weeks to approve the investments, with first payments expected in March 2026.

    Supporting European Defence Industry

    SAFE funding is intended to accelerate procurement of essential defence equipment, including missiles, artillery, drones, air and missile defence systems, cybersecurity tools, AI technology, and electronic warfare systems. Equipment purchased through the programme must be mostly European-made, with no more than 35% of components sourced from outside the EU, EEA-EFTA countries, or Ukraine. Canada is also eligible to participate under a bilateral agreement.

    The programme is particularly beneficial for countries with lower credit ratings, as they can secure more favorable borrowing rates through the EU than on their own. Germany, with a strong credit rating, chose not to request SAFE funds.

    European Commission President Ursula von der Leyen has indicated that the programme may be expanded, as demand already exceeds the initial €150 billion allocation, with 19 member states collectively requesting more than the scheme’s original budget.

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    Rachel Maddow
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    Rachel Maddow is a freelance journalist based in the USA, with over 20 years of experience covering Politics, World Affairs, Business, Health, Technology, Finance, Lifestyle, and Culture. She earned her degree in Political Science and Journalism from Stanford University. Throughout her career, she has contributed to outlets such as MSNBC, The New York Times, and The Washington Post. Known for her thorough reporting and compelling storytelling, Rachel delivers accurate and timely news that keeps readers informed on both national and global developments.

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