Its top allies in the loans of tens of billions of euros will be loaned from it to buy the war -feding weapons, as well as to strengthen their own defense.
In view of Tuesday’s deadline for submitting applications for the new € 150 billion -euro security assistance program, several EU countries said they are considering using this money to help Ukraine defend itself.
The loan program was proposed by the Commission in March as part of the wider Rearm Europe program and aims to stimulate Europe’s defense industry and reduce military dependence on decades.
The sure, the possible and the questions
Finland, Denmark, Estonia, Lithuania and Slovakia are considering receiving loans, several diplomats in Politico said, while Poland, the Czech Republic, Latvia, Bulgaria and H.
With the joint weapons market through the program, countries can secure a lower price than they would have achieved if they went on their own and deliver the equipment to Ukraine.
France is also likely to apply for loans, while Germany, Sweden and the Netherlands are expected to refuse, according to people who know governments’ plans.
However, even countries that do not receive loans are able to reduce the cost of weapons deliveries by participating in common supplies.
The indirect way of reinforcing Ukraine
European countries are facing increasing pressures to increase their own arms reserves and to boost military aid to Ukraine, after US President Donald Trump expressed his reluctance to continue funding Kiev’s war effort.
Countries are also exploring the direct purchase of weapons from Ukrainian companies, which is encouraged in the framework of Safe. This would allow Kiev to “increase the scale of defense production and technological integration with the EU,” a Ukrainian diplomat told Politico.
EU Defense Commissioner Andrius Kubilius wrote on Thursday that at least 20 countries will request up to € 100 billion under the program. The final amount will be clearer on Tuesday -the deadline for submitting applications for loans, although Brussels has stated that even the delay will not be cut off.
Safe’s bet
Brussels offered a 45 -year -old time frame to repay the loans and up to 15 percent. The cheap, long -term loans would be funded by EU debt, taking advantage of the triple credit rating.
The program was initially aimed at about 20 countries, for which EU loans had a more favorable interest rate than the market would offer if they borrowed their own name.
However, the offer was initially unpleasant to the wealthy Scandinavian countries that were skeptical of common lending programs and had a strong credit rating, such as Sweden, Denmark and Finland.
In an effort to attract these Ukraine allies to the system, Kubilius and Economy Commissioner Valdis Dombrovskis urged EU countries to use Safe to buy weapons for Ukraine.
“We warmly invite you to consider how to involve Ukraine in your plans. Supplies for Ukraine, with Ukraine, in Ukraine, can make the difference for our collective security, “a letter to countries said earlier this month.
Denmark and Finland now seem to be likely to accept the offer.
The Role of France and the possible refusal of Italy and Spain
Countries with high debt and deficits, such as Austria and Italy, are more reluctant to receive loans because of concerns that they will add to their existing debt, as this could delay their exit from the EU punitive process for the over -consumables, officials said.
France, a long -term supporter of more EU defense spending, is likely to receive loans despite the restrictions on its internal budget. Belgium, also burdened by high debt, will request from 7 to 11 billion euros under the program, according to an official with knowledge of the matter.
Greek Prime Minister Kyriakos Mitsotakis said on Monday that his country would ask for loans of 1.2 billion euros under the program.
Countries farther from Russia, such as Malta and Spain, are unlikely to ask for loans.
