**EU to Approve $170 Billion Defense Loan Amid Russia-Ukraine War**
The European Union is set to officially approve a massive defense loan instrument worth 150 billion euros, or approximately $170 billion. This move comes as the bloc faces an increasingly complex security environment due to Russia’s ongoing war against Ukraine.
According to Radio Liberty, the final agreement highlights the urgent threats posed by Russia and Belarus, emphasizing the need for swift support to member states. The EU has been working on this plan since May 21, when it agreed to launch a common defense fund amidst growing uncertainty about U.S. security commitments to Europe.
**Supporting Ukraine and Boosting Defense Industry**
The Security Action For Europe (SAFE) initiative will provide $170 billion in loans without counting towards EU fiscal spending limits. This loan instrument is designed to support the continent’s defense industry by financing weapons procurement for eligible countries. The EU, European Free Trade Association (EFTA) members, and Ukraine are all eligible to borrow funds from this defense spending mechanism.
EU Defense Commissioner Andrius Kubilius has stated that investing in domestic weapons production through the SAFE mechanism would effectively double the volume of weapons Ukraine receives. He has also called for EU member states to utilize the bloc’s SAFE initiative to strengthen Ukraine in its fight against Russia’s war.
**A Step Towards Strengthening European Defense**
The fund is part of the European Commission’s ambitious ReArm Europe program, which allows member states to spend an additional 650 billion euros on defense by loosening fiscal rules. This move demonstrates the EU’s commitment to bolstering its defense capabilities and supporting Ukraine in the face of Russia’s aggression.
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