He European Union Council (EU), which brings together the Member States, adopted on Tuesday the instrument that will allow to mobilize until 150,000 million euros on loans supported with debt Community that will be granted to the countries of the Community Club to make joint purchases of military material. The instrument, baptized as SAFE, will be financed with a joint debt issuance supported by the EU and will then transfer these 150,000 million euros in credits to the states that request it to undertake joint purchases of defense material. The disbursements will be made on the basis of national plans.
“To guarantee the economies of scale and interoperability and reduce the possible fragmentation of the industrial and technological base of the European defense, the beneficiary member states must, in principle, make joint acquisitions with the participation of at least two participating countries to opt for loans,” said the Council in a statement. He explained that, in Response to the current geopolitical situation Already the “urgent need for mass investment in defense equipment, Safe will also allow the acquisition in which only one member state is involved for a limited period of time.” In addition, Ukraine and European Economic Space countries will be treated just like the member states of the Community Club in regards to this loan tool. “Not only can they join joint acquisitions, but it will be possible to buy from their industries,” the EU institution specified.
Safe will also allow candidate countries to enter the Union, the potential candidates and the countries with which the EU has security and defense agreements (currently Norway, the United Kingdom, Moldova, Japan, South Korea, Macedonia del Norte and Albania) join the joint acquisitions. “In addition, Safe offers the possibility of entering an additional bilateral or multilateral agreement with these third states, by virtue of which eligibility conditions could be extended,” said the Council.
Purchases from European industry
The twenty -seven maintained after their negotiations the ‘European preference’ clause that consisted of the original proposal of the Community Executive, which forces that at least 65% of the components of each final product that are part of each purchase come from the countries of the block, Ukraine or the members of the European Economic Space.
Consequently, the components and products manufactured in third countries, including the United States, will be eligible in joint purchases made with the resources of this instrument, but will not be able to exceed 35% of the estimated cost of each product. However, the percentage of the components of the candidate countries to enter the EU, the potential candidates or the states with which the EU has closed security and defense agreements can go from 35% to 65% if these countries close a specific bilateral agreement that associates them with SAFE, as explained today by the spokesman of the European Commission Thomas Regnier at the daily press conference of the institution.
Regnier also specified that the participation of third countries in SAFE can be restricted if that state is a direct threat to the security and defense interests of a single EU Member State or the community of the Community Club. The spokesman answered in that regard to a question about the hypothetical participation of Türkiye, which Greece and Cyprus do not see with good eyes.
Weapon type
With respect to the type of products that can be acquired with Safe credits, the instrument contemplates two different categories. First, ammunition and missiles, which includes artillery systems, land combat capabilities and its support systems, critical infrastructure protection, cybersecurity and military mobility.
The second category, on air defense and antimiles systems, includes maritime capabilities of both surface and underwater, drones and anti -products systems, strategic facilitators, such as air transport, flight refueling, C4istar systems, space assets and services, space asset protection, artificial intelligence and electronic warfare. Safe will enter into force on the day after its publication in the EU Official Gazette, that is, on May 29.
Regnier explained that Member States now have six months to send their national plans and proposals to the European Commission, which will evaluate them. “After the evaluation, the Commission has the possibility of issuing an initial first payment to initiate these joint acquisition projects that reach up to 15% of this initial application. Then, every six months or twice a year the Member States have to send plans on how these projects evolve and this can always be associated with another payment request,” he explained.
