**EU Moves to Boost Defense Spending: What it Means for Ukraine**
The European Union’s decision to boost defense spending through shared borrowing has been welcomed by Ukrainian Foreign Minister Andrii Sybiha. This move could be a significant opportunity for Ukraine to invest directly in its defense industry, according to Sybiha.
In a statement on July 30, Sybiha said that the EU’s efforts to strengthen its defense sector are “on track” and that Ukraine is an essential element of this effort. He added that using some of the new funds to support Ukraine’s defense production would be a “cost-effective investment in Europe’s long-term peace and security.”
The European Commission’s Security Action for Europe (SAFE) program allows EU countries to access competitively priced long-term loans backed by joint EU borrowing. The aim is to ramp up common defense procurement, reduce dependence on external suppliers, and boost the continent’s self-sufficiency.
**A Major Step Towards Building Europe’s Readiness**
The response to the SAFE program has been overwhelming, with 18 EU countries signaling interest in accessing at least €127 billion ($146 billion) in loans. Andrius Kubilius, EU Commissioner for Defense and Space, called this a “major step” towards building Europe’s readiness.
“This is a welcome mobilization of European defense funding,” said Kubilius on July 30. The funds will be used to support investments in areas such as defense manufacturing, cyber capabilities, strategic supply chains, and dual-use infrastructure.
**Ukraine’s Expectations**
The Ukrainian government expects EU countries to use some of the new funds to support Ukraine’s defense production. This move would not only benefit Ukraine but also contribute to Europe’s long-term peace and security.
Russia’s aggression against Ukraine has been a major concern for Europe in recent years, and joint procurement between countries is encouraged to reduce fragmentation. However, temporary individual purchases are allowed in response to current geopolitical threats.
**A Broader Plan to ReArm Europe**
The SAFE program is part of the European Commission’s broader ReArm Europe Plan 2030, which aims to unlock over €800 billion ($918 billion) in defense spending amid continued Russian aggression against Ukraine. Ukrainian intelligence warned in May that Russia could restore its combat capabilities and threaten Europe again within two to four years after the war ends.
In conclusion, the EU’s decision to boost defense spending through shared borrowing is a significant move towards strengthening Europe’s defense sector. Ukraine expects EU countries to use some of the new funds to support its defense production, which would be a cost-effective investment in Europe’s long-term peace and security.
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