EU Mulls Second Edition of Successful SAFE Defence Loans

The European Commission may launch a second SAFE loans scheme to support defence projects following high demand and concerns about security. The original plan facilitated the EU borrowing funds for member states' defence, saving costs due to the EU's AAA credit rating.

The European Commission is contemplating the launch of a second edition of its successful multi-billion-euro SAFE loans scheme aimed at bolstering defence projects. This initiative comes amid rising security concerns over Russia and wavering U.S. commitments, according to informed EU officials.

European Commission President Ursula von der Leyen addressed the issue during a Politico event in Brussels, highlighting that the initial scheme attracted overwhelming interest, leading some EU member states to advocate for a sequel. The SAFE scheme allowed the EU to raise funds collectively, lending them cost-effectively to member states, leveraging the EU's AAA credit rating.

A second scheme could potentially provide similar long-term, affordable defense loans, although financial specifics remain uncertain. EU officials indicated that next year might be an opportune time for development, underlining the scheme's significance to European security.

(With inputs from agencies.)