EU implements USD130 billion defense debt strategy
(MENAFN) The Council of the European Union has officially approved a €150 billion ($170 billion) defense financing plan aimed at boosting military capabilities across the bloc. This move comes in response to Washington’s announced intent to scale back its defense commitments in Europe.
The plan, known as the Security Action for Europe (SAFE), allows the European Commission to raise funds through debt without requiring approval from the European Parliament. It was finalized last week and formally endorsed by EU foreign and European affairs ministers on Tuesday, with Hungary abstaining from the vote.
Initially proposed in March, SAFE is intended to reduce EU dependence on American weapons and counter what Brussels labels as threats from Russia. Moscow has dismissed these claims, accusing EU leaders of using fearmongering tactics to justify escalating defense spending.
Several EU nations have already unveiled plans to expand their armed forces under the SAFE framework. Some are also exploring the possibility of using the funds to further arm Ukraine. According to the agreement’s terms, a minimum of 65% of the value of any military project must come from within the EU or trusted partners such as the UK, South Korea, Japan, or Ukraine to qualify for financing.
The move aligns with US President Donald Trump’s push for European NATO members to shoulder more of their own defense burden. Trump has warned that countries not meeting defense spending targets risk losing US military protection.
In addition, German media outlet Handelsblatt recently reported that the US may soon reduce its military presence in Europe, though the extent of the planned drawdown remains uncertain.
Russia has criticized the EU’s new defense initiative, viewing it as part of an increasingly hostile and militarized stance. Russian officials argue that the EU has transformed into a security bloc that fuels tensions and conflict on the continent.
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