(MENAFN) In a significant move toward enhancing European self-reliance in defense, EU nations have approved a €150 billion ($170 billion) loan initiative aimed at increasing defense expenditures through 2030. The funding will support collaborative military projects, procurement efforts, and replenishment of stockpiles.

European Council President Antonio Costa announced the agreement on X on Wednesday, calling it "an important step towards a stronger Europe."

"It delivers on the commitments made by EU leaders in March, helping member states invest jointly in European defence and strengthening our shared security," he stated.

Poland, which currently holds the EU's rotating presidency, emphasized on X that "the more we invest in equipping our armies, the better we will deter those who wish us harm."

The agreement follows mounting pressure from the U.S. administration for NATO members—many of whom are also part of the EU—to increase their defense budgets. In response, the EU has been exploring new defense policies.

Central to this strategy is the European Commission’s White Paper introduced in March, which outlines plans to scale up military investment and industrial output by 2030. A cornerstone of this plan is the Security Action for Europe (SAFE) mechanism, which includes the newly approved loan facility.

Participation in SAFE is not limited to EU member states; non-EU nations with defense cooperation agreements with the bloc—such as Norway, Moldova, South Korea, Japan, Albania, and North Macedonia—are also eligible to join.

During a summit held in London on Monday, the EU and UK also discussed extending SAFE access to the British defense sector.

MENAFN21052025000045017169ID1109577206