Security and Defence Committee vice-chair Christophe Gomart opened Thursday’s ordinary meeting with a focus first on the EU’s SAFE defence loan instrument – in the spotlight as Russia continues to step up its attacks on Ukraine and probes NATO and EU resilience. Nineteen member state countries applied for defence loans within the new structure and the head of the programme presented paths forward as well as long-term goals.

“What we need,” Chrisophe Gomart (EPP/FRA) said, “is a clear picture where things stand (…) the current state of play, what criteria is being used to check joint procurement and defence cooperation, [and to ask] whether Parliament will have access to information about projects which are approved.”

He also noted that the committee expected to be informed by the Commission in advance.

Head of task force explains

The job of bringing the chamber up to speed belonged to the head of the Task Force for Security Action for Europe (SAFE) Herald Ruijters, who gave a detailed overview of funds allotted to EU countries which had applied. He also explained how cooperation with additional partners worked—including Ukraine.

Mr Ruijters reminded attendees that SAFE — as an instrument providing loans to member states — was launched and approved very rapidly, reflecting the urgency to strengthen defence capabilities. Designed to complement other EU funding programmes within the European Defence Technological and Industrial Base (EDTIB) framework. The aim is to accelerate the availability of defence products and improve interoperability.

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Loans totaling €150bn were divided among the member states that applied. The next challenge is the approval of individual proposals, enhancing not only national defence but boosting defence across the EU as a whole.

I think we must keep SAFE simple. Don’t make restrictions excessive: the EU has a long history of hurting even good ideas by excessive bureaucracy. – Alexandr Vondra, MEP (ECR/CZE)

Timeline for proposals and funding

The head of the task force for SAFE, Herald Ruijters, also described the allocation of funds per state and oversight of their use.

“We are working on the plans that have to be submitted by the end of November. There will be a process leading up to that with meetings with the member states to ensure they respect what is in the regulations, mainly common procurement. But also that they respect the 35/65 repartition of components and for more complex systems, design authority in Europe. So that is going on right now: member states have until the end of November to submit their plans.”

According to the head, the assessment by the Commission in December will then pave the way for the loans to be provided, with agreements signed next February. He also stressed that while there were an additional eight member states that had not opted for a loan under the scheme, it didn’t mean they wouldn’t be involved in terms of cooperation down the line.

“Most of them have explicitly informed the Commission that they want to take part in the SAFE programme, through the common procurements. Sweden, Germany, the Netherlands, Luxembourg, have all indicated the aim to be active participants. So we expect [even those not taking a loan] to participate and to engage very rapidly.”

Ukraine’s involvement

Lest it be forgotten, the task force head underlined the commitment to Ukraine and its place within the scheme. It is, after all, Russia’s brutal war against Ukraine that has reshaped the EU and set it on its present course – to boost defence by 2030,or earlier, to counter newer threats.

“Ukraine has been of course particularly engaged with us (…) members may be aware that Ukraine is eligible, through its industrial base, to participate. However, it cannot take a loan. But their industry can engage and prepare actions between member states and Ukraine so they can take joint procurement and they can invite Ukraine to participate.”

Czechia was one of 19 countries that signed up for the SAFE defence scheme / Photo: Pixabay.com

Concerns and praise from MEPs

The presentation was followed by some tough lines of questioning, with some MEPs concerned that the rapid response could swing too much leverage in the defence industry’s direction, enabling higher costs in the long run. Hannah Neumann (Greens-EFA/DEU) said this:

“This just incentivises industry to ask very high prices because member states are forced to spend this big money very fast (…) I want Europe to be safer and not defence industry shareholders to be richer.”

Others, like MEP Alexandr Vondra (ECR/CZE), applauded the swiftness with which the Commission had made progress but didn’t rule out the bloc’s ability to shoot itself in the foot — or stumble at the finish.

“SAFE seems to have real potential to help finance key defence procurement projects that would otherwise be delayed or scaled down. Yes, member states are required to submit their final proposals only by the end of November. But let me stress two things already now: firstly, I think we must keep SAFE simple. Don’t make restrictions excessive: the EU has a long history of hurting even good ideas by excessive bureaucracy.”

Others were critical, namely for the way SAFE had been approved for apparent expediency. MEP Lucia Yar (Renew/SVK) responded:

“As we all know the European Parliament is suing the Council over the use of Article 122 for leaving it out.”

Because it was structured as a loan-based instrument and not a fund, SAFE was hammered out outside of the normal EU legislative process. The European Parliament had no formal co-decision role in its setup, as the instrument was implemented through Commission and Council mechanisms, which left some hard feelings since.

Shaping defence priorities

Although the total loan envelope under SAFE has been established, member states must now determine where and how they intend to spend the money — and submit structured proposals by the end of November. These plans are expected to strengthen national defence capacities and are more than likely to contribute to joint efforts also helping Ukraine.

Projects may fall under two main categories: the first includes ammunition and missiles, artillery systems, deep precision strike capabilities, and NATO-class 1 small drones. The second covers larger platforms such as air and missile defence systems, heavier drones, artificial intelligence applications, and cyber warfare. The EU has recognised the urgent need to respond to the growing threat posed by Russia. SAFE is a direct result of that recognition: a coordinated effort to build European security on firmer ground, for the long term.