Ukraine’s European allies are requesting tens of billions of euros in EU loans for the war-torn country for joint arms procurement, as well as to strengthen their own defence capabilities. Before the Tuesday deadline for applying for the new 150 billion euro European Security Assistance Facility, which provides loans for arms purchases, several EU member states have indicated to POLITICO that they are considering using the money for Ukraine’s defence.
The loan programme was proposed by the Commission in March as part of the broader ReArm Europe programme, aimed at boosting Europe’s defence industry and reducing the bloc’s decades-long military dependence on the United States.
Belgium, Bulgaria, Cyprus, Czechia, Estonia, Spain, Finland, Hungary and Lithuania have officially indicated that they wish to take advantage of the loans – Thomas Regnier, the EU defence spokesman, stated on Tuesday.
Several other countries, including Czechia, Latvia, Bulgaria and Greece, have also indicated that they will submit their applications before the midnight deadline on Tuesday.
Under the programme, through joint arms procurement the countries can achieve lower prices than individually, and then ship the weapons to Ukraine. France is also likely to request the loans, while Germany, Sweden and the Netherlands are expected to reject them, according to sources familiar with the governments’ plans.
However, even countries that do not take out loans can reduce the cost of arms deliveries if they participate in joint procurements.
European countries are under increasing pressure to increase their own arms stockpiles and step up military aid to Ukraine, after US President Donald Trump indicated that he is not willing to continue financing Kyiv’s war effort.
Andrius Kubilius, the EU defence commissioner, wrote on Thursday that at least 20 countries will request up to 100 billion euros under the programme. The final amount will be clarified on Tuesday, the deadline for loan applications, although Brussels has indicated that late applicants will not be turned away.
