Nicosia: Estonia has successfully received its initial payment of £351.6 million under the Security Action for Europe (SAFE) defence instrument, marking 15% of its total allocation of £2.3 billion. According to Cyprus News Agency, SAFE is a substantial £150 billion financial framework designed to assist EU Member States through loans primarily for joint procurement of defence equipment manufactured within the EU, including ammunition, missiles, air defence, and ground combat systems. This initiative is a crucial component of the European Commission's ReArm Europe/Readiness 2030 plan, which aims to catalyze over £800 billion in defence investments across the European Union.
The pre-financing will enable Estonia to expedite its priority defence investments, enhance resilience, and modernize its military capabilities in alignment with shared European objectives. SAFE is crafted to facilitate prompt, cooperative actions, improve interoperability among European forces, and bolster Europe's defence industry through joint procurement and enhanced cross-border collaboration. Commissioner for Defence and Space, Andrius Kubilius, emphasized the significance of the payment, stating, 'With this first SAFE payment, we are helping Estonia move quickly on key defence investments and strengthen its readiness and resilience. We are moving fast and decisively to help Member States on the EU Eastern Flank.'
This initial pre-financing follows the completion of necessary procedural steps, underscoring the EU's dedication to providing timely support through SAFE. Subsequent payments will be disbursed as agreed milestones and implementation criteria are achieved. The SAFE instrument is financed by EU borrowing, offering competitively priced, attractively structured long-duration loans to requesting Member States, benefiting from the EU's robust credit rating. All loans under SAFE will be repaid by the beneficiary Member States.