site.btaEC Approves Preliminary Allocation of EUR 150 Bln to Boost EU's Defence Readiness

The European Commission announced on Tuesday that it had approved the preliminary allocation of EUR 150 billion in financial aid to boost defence readiness in the European Union (EU). This step is expected to help EU countries jointly purchase defence equipment. So far, 19 EU countries, including Bulgaria, have shown interest in the program.

For Bulgaria, the program provides for a budget of some EUR 3.26 billion.

The Security Action for Europe (SAFE) financial instrument was adopted by the Council of the European Union on May 27 to provide competitively priced, long-maturity loans to Member States requesting financial assistance for investments in defence capabilities. This program is expected to provide additional support to Ukraine by including joint actions with the Ukrainian defence industry, the statement noted.

A 10-year grace period is envisaged for the repayment of loans, with EU Member States required to submit national investment plans by the end of November. The EC will then assess the plans and is ready to disburse the first amounts at the beginning of next year.

The Commission expects joint public procurement in the field of defence to quickly overcome capability gaps and increase interoperability. This is expected to reduce the cost of acquiring capabilities. The program is open to countries that are about to join or wish to join the EU, the EC noted.

The SAFE program finances the purchase of ammunition, artillery systems, infantry equipment, drones, as well as infrastructure protection, communications, and dual-use infrastructure development. The EU will also cover the costs of acquiring submarines, transport aircraft, air-to-air refueling systems, artificial intelligence development, and electronic warfare capabilities.