Tue May 27 16:14:21 UTC 2025: **Summary:**

The European Union has formally approved a €150 billion loan program called SAFE (Strategic Armament Funding for Europe) to bolster its defense capabilities amidst concerns over Russia and doubts about U.S. reliability. The initiative allows a portion of the funds to be spent on manufacturers outside the EU and Ukraine, while prioritizing European preference. The move is part of a larger effort to increase defense spending and reduce dependence on the U.S. The EU and the UK have also agreed on a new defense partnership, although the UK would need a separate agreement to fully participate in the SAFE scheme.

**News Article:**

**EU Approves €150 Billion Defense Loan Program Amidst Geopolitical Tensions**

**Brussels -** In a significant move aimed at strengthening its security posture, the European Union formally approved a €150 billion loan program, dubbed SAFE (Strategic Armament Funding for Europe), on Tuesday. The initiative comes amid growing concerns over Russia’s actions and increasing questions about the long-term reliability of the United States as a security partner.

The SAFE program, backed by the EU’s central budget, was proposed in March and aims to boost the bloc’s defense capabilities. Final approval came at a meeting of Europe Ministers in Brussels, with 26 countries voting in favor and one abstaining.

While EU member states debated the specifics of the program, the final agreement permits up to 35% of the value of weapons acquired through the scheme to be sourced from manufacturers outside the EU and Ukraine. However, the initiative is designed to prioritize European defense industries.

France’s Europe Minister Benjamin Haddad hailed SAFE as “a major step forward,” asserting its importance in “supporting our industries, reducing our dependencies, including from the United States, and invest[ing] in Europe’s strategic autonomy.” He added, however, that further efforts are needed.

The €150 billion borrowing program is part of a larger package of measures that includes loosening budget rules, potentially unlocking €800 billion for defense spending.

The EU’s decision also follows a new defense partnership agreement between the EU and the UK, forged in the post-Brexit landscape. However, a separate agreement will be necessary for the British defense industry to fully benefit from the SAFE scheme.

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