The European Union is planning to borrow €150 billion on financial markets to fund its new lending instrument, Security Action for Europe (SAFE), a key component of the Readiness 2030 plan aimed at mobilizing €800 billion for defense investment by 2030. The initiative aims to improve Europe’s defense industrial base and reduce dependence on US-made weapons.
Under SAFE, member states can buy strategically and together, leading to more interoperable armies and quicker production. The investments will boost the production and procurement of air and missile defense systems, artillery, missiles, ammunition, and other critical military equipment to address security threats. This includes infrastructure protection, cyber warfare, and artificial intelligence.
German MEP Marie-Agnes Strack-Zimmermann, chair of the European Parliament’s Security and Defense Committee, sees SAFE as a good sign, stating that it gives countries the opportunity to find money for military equipment. She also notes that some technology could have dual use and be useful for civilian purposes.
However, opinions on the plan are divided among residents in Rome and Berlin. Some see it as necessary to defend against potential threats, while others worry about increasing spending without a clear threat. Governments will repay the loans over 45 years and can activate the Stability and Growth Pact’s National Escape Clause to exceed the budget deficit limit.
To receive loans, governments must meet certain conditions, including producing at least 65% of military equipment within EU member states or partner countries. The remaining 35% can come from third countries with bilateral security agreements.
The EU’s increased investment in defense could be seen as a move towards greater autonomy, something President Donald Trump has demanded within NATO. European Commission officials are optimistic that the US will recognize this shift, citing Strack-Zimmermann’s remarks.
Source: https://www.euronews.com/my-europe/2025/06/10/macron-says-france-will-ban-social-media-access-for-under-15s-if-eu-takes-no-action