ISLAMABAD: The European Union has officially approved a €150 billion loan scheme to enhance military readiness amid escalating tensions with Russia and growing concerns over the long-term reliability of the United States as a defense partner.
The loan initiative, known as the SAFE (Support to Accelerate the Formation of European Defence) scheme, was finalized at a high-level meeting of European ministers in Brussels on Tuesday.
The plan, initially proposed by the European Commission in March, is part of a broader push to reinforce European security infrastructure and reduce dependency on external suppliers.
With 26 member countries voting in favor and only one abstaining, the decision marks a unified step towards deeper EU defence integration.
Strategic Autonomy and Industry Focus
The SAFE programme will be financed through loans backed by the EU’s central budget and is structured to allow 35 percent of the weapons’ value to be sourced from non-EU manufacturers, including Ukraine.
France’s Europe Minister Benjamin Haddad hailed the decision as “a major step forward” for European strategic autonomy.
“It reinforces the principle of European preference, ensures support for our own defence industries, and reduces our dependencies — including those on the US,” Haddad said. However, he stressed that SAFE should be seen as only a starting point, urging EU partners to pursue further initiatives in support of defence self-reliance.
The loan programme complements other financial strategies proposed by Brussels, including the relaxation of budgetary constraints across the bloc.
Together, these policies could potentially unlock up to €800 billion in total defense-related investments.
Post-Brexit Cooperation and Future Outlook
The approval also comes on the heels of a renewed EU-UK defense partnership, signaling a thaw in post-Brexit relations.
While the United Kingdom welcomed the broader cooperation, full participation in the SAFE scheme would require London to negotiate a separate agreement to open access for its defence industry.
As geopolitical uncertainties persist, the EU’s decision reflects a significant pivot toward self-sufficiency in security affairs — a goal long discussed but now accelerating in the face of current global threats.
