EU launches large-scale loan program to arm Ukraine and strengthen its own defense

Ukraine’s allies in Europe intend to apply to the European Union for loans worth up to 150 billion euros. The funds are planned to be used to purchase weapons for Kyiv, as well as to modernize their own armed forces.

This is reported by Politico.

Several EU countries have expressed interest in a new loan scheme under the European Security Facility, proposed by the European Commission in March, ahead of the deadline for applications. The scheme aims to support Europe’s defence industry and reduce the EU’s military dependence on the US.

According to EU defense spokesman Thomas Rainier, applications for loans have been submitted or are planned to be submitted by Belgium, Bulgaria, Cyprus, the Czech Republic, Estonia, Spain, Finland, Hungary and Lithuania.

Latvia, Bulgaria, Greece and the Czech Republic will also join the deadline for submissions, which expires at midnight on Tuesday.

France is also likely to participate in the program, while Germany, Sweden and the Netherlands have said they will not. Even countries that will not take out loans can take advantage of joint procurement to reduce the cost of weapons.

The loans have a 45-year maturity and upfront payments of up to 15%. The financing will be provided by EU debt.

Countries with high public debt, in particular Austria and Italy, are more cautious about participating in the program due to the risks of increasing the debt burden.

Earlier, Bundeswehr Inspector General Carsten Breuer said that Germany needs to increase the number of military personnel to 460,000, involving both reservists and recruits through voluntary or compulsory service.

Recall, the United States of America is preparing to transfer weapons to NATO allies worth about $10 billion — with the subsequent delivery of this equipment to Ukraine . The agreement, signed by US President Donald Trump and NATO Secretary General Mark Rutte, provides for the transfer of the most modern weapons, including missiles, air defense systems and artillery ammunition.

As reported, most of Ukraine’s European allies enthusiastically welcomed the US initiative to purchase American weapons for Kyiv. However, not all countries supported this move, in particular France, which is traditionally considered one of Ukraine’s most important partners.

In addition, the Italian authorities are also not yet ready to join the European initiative to purchase American weapons for Ukraine’s needs.

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