European countries push for EU loans to boost Ukraine’s military - Politico
Photo: European countries want to take out loans from the EU to finance the Ukrainian army (Getty Images)
Ukraine's allies in Europe plan to ask the European Union for tens of billions of euros in loans to purchase weapons for Kyiv and to upgrade their armed forces, Politico reports.
Ahead of the deadline for applications for a new €150 billion loan scheme for arms purchases under the European Security Assistance Mechanism, several EU countries have told the publication that they are considering using these funds to help Ukraine defend itself against a full-scale Russian invasion.
The loan scheme was proposed by the Commission in March as part of the broader ReArm Europe program and aims to stimulate Europe's defense industry and reduce the EU's long-standing military dependence on the United States.
Who will participate in loan program
According to EU defense spokesman Thomas Renier, Belgium, Bulgaria, Cyprus, Czechia, Estonia, Spain, Finland, Hungary, and Lithuania have officially expressed interest in requesting loans.
Other countries, including Czechia, Latvia, Bulgaria, and Greece, have said they will do so by the deadline of midnight on Tuesday.
France is also likely to apply for loans, while Germany, Sweden, and the Netherlands are expected to opt out of the program. However, even countries that do not take out loans can still reduce the cost of arms deliveries by participating in joint procurement.
How funds will be repaid
The European Commission has proposed a 45-year repayment period for loans and advance payments of up to 15 percent. Cheap long-term loans will be financed by EU-level debt.
Countries with high levels of debt and deficits, such as Austria and Italy, are less willing to borrow due to concerns about increasing existing debt
Europe strengthening its army
Earlier, Bundeswehr Inspector General Carsten Breuer stressed that Germany should increase its number of soldiers to 460,000. This includes both reservists and active military personnel.
According to him, this number of soldiers can be achieved through either voluntary or compulsory military service.
Poland is preparing for a large-scale military qualification in 2026 — more than 200,000 people will be called up for medical examination. The summons will not only be sent to men.
