The program will become effective after the publication of the relevant regulation in the EU official journal, which – according to Adam Szłapka, the European Affairs Minister – is a matter of days or weeks.
The minister emphasized the strategic importance of the program, especially for Poland. According to his words, two aspects of the program became key, which were a priority for the Polish delegation. The first of these is enabling the financing of already concluded contracts, and the second – placing orders by one Member State without the need for multilateral arrangements, which is to apply in the first year of SAFE.
The mechanism of the SAFE program is based on loans granted to Member States, which will be taken by the European Commission and guaranteed by the EU budget. Thanks to this EU design, it aims to increase investments in the defensive sector, and the funds obtained under the program can be allocated to the purchase of military equipment and ammunition.
Interestingly, the Safe program will also be open to Ukraine, which can cooperate with EU countries on defense projects. This is another element of Union support in the face of Russian invasion. In addition, participation in the program is offered Norway, Switzerland and Great Britain based on defense partnership agreements.
One of the most important points that were considered in the EU was the possibility of using loans for the purchase of products from third countries, such as the United States. Ultimately, EU countries decided that 35 percent The Safe budget can be allocated to components from outside the EU. Other 65 percent It will be reserved for producers from Europe, Ukraine as well as EFTA and EEA, including Norway and Switzerland.
See also: EUR 150 billion for defense. The Union accepts the loan program
The program settles the interest rate on the level of 3.3 percent. Considering this rate, countries that can get better financing conditions on their own will probably not use the program. Thus, Safe will be interested primarily in countries such as Poland, which can find in it a support tool for their investments in the defensive sector. The condition for obtaining loans will be the preparation of the national plan by countries.
