EU Nations Seek $147 Billion in Defense Loans Under SAFE Scheme Amid Rising Security Pressures

In a major move to ramp up military preparedness, 18 European Union countries have applied for loans worth at least €127 billion ($147 billion) under a new defense funding initiative launched by the European Commission. The scheme, called SAFE (Strategic Technologies for Europe Platform), is aimed at helping EU nations rearm and modernize their defense forces in response to growing threats, particularly from Russia.

The SAFE plan, introduced in May 2025, offers cheaper EU-backed loans to member states, with a total potential value of €150 billion ($171 billion). These loans are designed to boost defense purchases across Europe while reinforcing the EU’s own defense manufacturing capabilities.

According to EU Defense Commissioner Andrius Kubilius, the high demand shows strong European unity and ambition in strengthening collective security. Countries like France, Italy, Spain, and Poland are among the leading applicants for the funds, and more applications are expected before the deadline at the end of November.

This push comes as NATO allies, especially those in Europe, are under increasing pressure to meet higher defense spending targets. At the NATO summit held in The Hague in June, members committed to spending 3.5% of GDP on military budgets and another 1.5% on broader security measures by 2035. This represents a significant jump in defense outlays compared to previous years.

While the SAFE scheme aims to boost EU-made weapon systems, analysts note that countries like the United States could still benefit indirectly. Many EU nations continue to place orders for American weapons systems, such as F-35 fighter jets, Patriot missile systems, and HIMARS launchers, due to their proven capabilities and interoperability with NATO forces. This trend suggests that despite the EU’s push for internal defense manufacturing, U.S. defense companies are likely to see increased demand as European militaries accelerate procurement.

However, the SAFE program does include strict conditions to ensure a large portion of funds go toward weapons produced within the EU, supporting local defense firms and reducing long-term dependency on non-European suppliers.

The European Commission has also loosened budget rules to allow more flexibility in defense-related spending, signaling a broader policy shift toward military readiness and strategic autonomy.

In short, the EU’s $147 billion loan push marks a turning point in how Europe is preparing for a more volatile security environment — one where the U.S. remains a key defense supplier, but where Europe is also working hard to stand on its own feet militarily.