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Reuters: EU Commission considering second loan scheme for defense projects
2025-12-12 23:58:47 / BOTA
The European Commission is considering launching a second edition of its multi-billion euro SAFE loan scheme for defense projects, as Europe seeks to strengthen its defenses due to growing fears of Russia and doubts about U.S. security commitments, according to two EU officials.
European Commission President Ursula von der Leyen said Thursday night at an event hosted by Politico in Brussels that the original 150 billion euro scheme was so overstretched that some EU members are calling for a second one. Two EU officials, speaking on condition of anonymity to discuss internal discussions, said the Commission was actively considering the idea.
Reuters writes that under the SAFE scheme, the EU jointly borrowed money on the market to lend at cost to EU governments for their defense projects. For most countries that do not have a AAA credit rating like the EU, this means huge savings. Moreover, the loans can be up to 45 years and have a 10-year grace period for repayment of the principal.
The commission received applications for loans worth about 190 billion euros under the existing SAFE scheme, suggesting there was strong demand for a second version, one of the officials said. But the official said it was too early to say how much money might be available under a second scheme.
"I think we will need to develop that instrument. There are legitimate arguments why it is important to have it," the official said, suggesting that next year might be the ideal time.
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