European Commission Approves Defence Loans to 8 Member States

JAKARTA - The European Commission has approved the national defense plans of eight EU countries under the Security for Europe (SAFE) loan instrument for military strengthening.

"The European Commission has supported the national defense plans of eight Member States, marking an important milestone in Europe's efforts to strengthen its security," the European Commission said in a statement quoted by Sputnik, Friday, January 16.

"The Commission has submitted a proposal to the Council to approve financial assistance to Belgium, Bulgaria, Denmark, Spain, Croatia, Cyprus, Portugal and Romania," the Commission said in a statement on Thursday.

The board has four weeks to make a decision on implementation, the statement said, adding that after approval, the Commission will finalize the loan agreement, with the first disbursement expected in March 2026.

Last May, EU countries agreed to establish the SAFE instrument, which is designed to attract up to 150 billion euros (around Rp2.948 trillion) to increase weapons production.

Furthermore, on August 29, President of the European Commission Ursula von der Leyen announced that 19 EU member states would participate in the program.

The European Commission said the SAFE program would provide long-term, low-cost loans to help countries acquire defense equipment.

The mechanism reportedly includes a 10-year grace period for loan repayments, competitive interest rates, and the possibility of making bilateral agreements with third countries to extend eligibility.