The EU’s €150B Loan Plan: Financing Strategic Autonomy

Brussels is advancing an ambitious financing scheme to help European militaries rearm and achieve greater strategic autonomy. The European Commission has proposed a €150 billion joint borrowing program, called the Security Action for Europe (SAFE) initiative, to provide cheap long-term loans to EU governments for priority defence projects. Under this plan, the EU would leverage its AAA credit rating to raise funds and on-lend to member states for investments in critical capabilities such as air and missile defence, artillery, drones, and cyber security. By pooling financial strength, the EU aims to jump-start collective defence improvements that many individual countries would struggle to afford quickly on their own.