The European Council announced in a statement adopted on Tuesday, May 27, that the establishment of a Security Action for Europe (SAFE) defense fund amounting to 150 billion euros by the European Union has been approved.
According to the press release, the new fund will provide additional incentives for member states to expand defense industry production through joint procurement and will finance urgent and significant investments in the European defense industry and technological base.
The statement emphasized that the main goal of this initiative is to increase production capacity, ensure the constant availability of defense equipment, and meet needs, while also strengthening the European Union's overall defense capability.
Additionally, the SAFE fund will enable the European Union to continue providing assistance to Ukraine. This includes supporting Ukraine's defense industry from the initial stages.
It was noted that the allocated funds will be provided to member states in the form of long-term loans at "competitive" interest rates upon request. However, one of the conditions for these loans is that purchases must be made in cooperation with at least two other states.
