European Union approves €150bn 'SAFE' fund to bolster Europe's defense

The European Union has approved the establishment of a €150 billion fund aimed at bolstering Europe's defence capabilities, a move spurred by increasing fears over Russian aggression and uncertainties surrounding US security commitments. The fund, known as the Security Action for Europe (SAFE), was given the green light by EU ministers in a meeting in Brussels on Tuesday, marking the final legal step in the scheme's creation. The initiative will use joint EU borrowing to provide loans to European countries for collaborative defence projects. The proposal was backed by 26 of the 27 EU member states, with Hungary abstaining. “We adopted SAFE – the first large-scale defence investment programme at the EU level,” said Poland, which currently holds the EU’s rotating presidency, in a statement on social media. “The more we invest in our security, the better we deter those who wish us harm.” 💬 Minister for European Affairs @adamSzlapka: SAFE programme finally approved. EUR 150 billion for the development of the defence industry. A gigantic success for Poland and the Polish Presidency. @AgnieszkaBartol https://t.co/NLLvMghEAj — Polish presidency of the Council of the EU (@POLAND25EU) May 27, 2025 The European Commission first introduced the idea of the fund in March, driven by growing concern among EU leaders that the United States might not fully honour its commitments to protect Europe in the event of an attack. The fears escalated following Russia’s 2022 invasion of Ukraine, which heightened anxieties that EU nations could be next in line for a Russian assault. Despite a more than 30% increase in EU defence spending over the past three years, European leaders have expressed concerns that current investments are insufficient. Polish Defence Minister Mariusz Błaszczak, commenting on the new scheme, stressed the importance of collective European defence efforts, stating, “We must remain united in the face of external threats. This fund is a vital part of ensuring our future security.” Moscow has sharply criticised the EU’s rearmament strategy, accusing the bloc of provoking conflict with Russia by building up its military capabilities. Russian officials have dismissed the notion of a Russian threat as an "invented story," similar to rhetoric used prior to the 2022 invasion. European leaders, however, remain unconvinced, with many pointing to Russia's military expansion and aggressive actions as a clear danger to regional stability. The SAFE initiative is designed to overcome national barriers by funding joint defence projects across EU nations, with a strong emphasis on supporting the European defence industry. To qualify for SAFE loans, projects must ensure that at least 65% of the value comes from companies based in the EU, the European Economic Area, or Ukraine. However, companies from countries with a Security and Defence Partnership agreement with the EU, such as the UK, may also be eligible, provided they meet specific conditions. The UK, which signed such an agreement with the EU earlier this month, could see companies like BAE Systems participate in SAFE-funded projects, strengthening cooperation between British and European defence industries. The European Commission bypassed the European Parliament in fast-tracking the legislation, securing approval directly from EU governments to accelerate the fund’s launch. The SAFE programme represents a significant shift towards greater EU military independence, as European leaders seek to address both external threats and internal uncertainties in an increasingly unstable geopolitical environment.

from Latest World News, International News | Breaking World News https://ift.tt/po1Ue6B