EU approves billions in SAFE defence funding for France and Czech Republic

The Czech Republic and France will receive more than EUR17 billion in EU-backed loans under the Security Action for Europe (SAFE) programme, as Brussels continues its efforts to ramp up defence spending across the bloc. 

France has been allocated a maximum loan amount of EUR15.09 billion, with a pre-financing payment amounting to EUR2.26 billion.  

A smaller sum has been allocated to the Czech Republic, which will receive a maximum amount of EUR2.06 billion, which includes an initial pre-financing payment of EUR309 million.  

An EU announcement on 10 April stated that the release of the funds follows a positive assessment of the two countries’ national defence investment plans, which were submitted in November and cleared in March. 

Adopted in May last year, SAFE is a funding mechanism which provides EUR150 billion in loans to participating members to help scale up joint defence procurement and manufacturing.  

Following the programme’s launch, 18 countries have now signed up to access the loans. Poland and Romania are the top beneficiaries, receiving EUR43.7 billion and EUR16 billion respectively.  

The EU notes that pre-financing payments are expected to reach France and the Czech Republic “in the coming weeks,” following conclusion of the loan agreements. 

Interest in the instrument has also extended beyond the EU. Canada is the first non-European country to join the SAFE programme, after paying a EUR10 million participation fee. The UK is also trying to negotiate access to SAFE, although there have been disagreements over the high entry costs.