EC approves second national defense plan group in the SAFE instrument

RIGA - Following approval of the first wave of defense funding, the European Commission (EC) has approved a second group of national defense plans under the European Security Action for Europe Instrument (SAFE), the EC Representation in Latvia's Press Office informed the LETA.

The EC submitted a proposal to the Council of the European Union (EU) to approve financial support for Estonia, Greece, Italy, Latvia, Lithuania, Poland, Slovakia, and Finland.

This decision followed an assessment of the countries' national defense investment plans under the SAFE initiative. The EC's decision opens up the possibility of granting the first wave of low-cost, long-term loans, allowing these countries to urgently increase their military readiness and purchase the necessary modern defense equipment.

This regulation also deepens Ukraine's integration into the EU's security ecosystem, ensuring that European support is both flexible and sustainable.

The amount of funding for each country was provisionally determined in September, based on the principles of solidarity and transparency. Once the loan agreements have been signed, these eight Member States will be entitled to receive approximately EUR 74 billion. The EC emphasizes that these funds will make a significant contribution to strengthening strategic capabilities where they are most needed.

As reported, the European Commission's decision on using SAFE funds for Latvia's defense investment plan is expected in the coming days, so Latvia will be able to start absorbing money from the European Union's financial instrument, Valdis Dombrovskis (New Unity), Executive Vice-President of the European Commission for An Economy that Works for People, told LETA.

He noted that, according to Latvia's defense investment plan, EUR 3.5 billion will be allocated for this purpose, which Latvia will be able to attract in the form of loans on favorable terms.

Security Action for Europe (SAFE) is a new EU financial instrument to be financed by EU borrowing and aimed at deterring Russia from attacking another European country after the war against Ukraine.