EU Commits USD175.6B Fund to Enhance Defense Readiness Across Bloc

(MENAFN) The European Commission has unveiled a preliminary €150 billion ($175.6 billion) defense fund as part of its new Security Action for Europe (SAFE) initiative, aimed at enhancing defense capabilities within the EU.

This funding will be allocated to 19 member states that have requested financial support, based on a predefined distribution framework. However, the final figures will be determined by each nation's defense readiness and specific project needs.

Poland will receive the largest share, with €43.7 billion earmarked for its defense initiatives. It is closely followed by Romania (€16.68 billion), France and Hungary (€16.21 billion each), and Italy (€14.9 billion). Additional significant allocations include Belgium (€8.34 billion), Lithuania (€6.37 billion), Portugal (€5.84 billion), and Latvia (€5.68 billion).

Other recipients include Bulgaria (€3.26 billion), Estonia (€2.66 billion), Slovakia (€2.31 billion), Czech Republic (€2.06 billion), Croatia (€1.7 billion), the Greek Cypriot Administration (€1.18 billion), Spain and Finland (€1 billion each), Greece (€787 million), and Denmark (€46.7 million).

SAFE, introduced by EU leaders in May, offers long-term, competitively priced loans to accelerate defense procurements crucial to EU security. This initiative forms a key component of the European Commission's broader ReArm Europe Plan/Readiness 2030, which aims to direct over €800 billion toward strengthening Europe's defense sector.

While the loans are exclusive to EU member states, Ukraine and countries within the EEA-EFTA will also have the opportunity to engage in joint procurement efforts under the program.

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