What is the ReArm Europe Plan/Readiness 2030?

The ReArm Europe Plan/Readiness 2030, announced by President von der Leyen, provides legal and financial means to support the defense investments of Member States. It is an ambitious defense package offering financial leverage to EU Member States to quickly and significantly increase their defense investments.

What are the main objectives of the ReArm Europe Plan/Readiness 2030?

The plans pillars are designed to mobilize up to €800 billion for defense investments, structured around:

• Utilization of public funds for national defense.
• The SAFE instrument for joint procurement.
• Mobilizing private capital via the EIB group.

What is the Security Action for Europe - SAFE initiative?

The SAFE initiative provides Member States with up to €150 billion in loans, backed by the EU budget, to boost their defense capabilities through joint procurement.

Joint procurement ensures interoperability and cost reduction, strengthening the European defense industry.

Why did the Commission decide to use loans?

The instrument provides advantageous financing conditions and leverages the EUs credit strength to swiftly respond to defense needs.

Could the €150 billion amount be increased if needed?

The maximum size of loans will be fixed in the regulation of the new program.

Why are loans backed by the EU budget more attractive than Member States issuing their own loans?

The new instrument offers long-maturity loans at competitive prices, funded by EU borrowing, often a more cost-effective source of funding than national borrowing.

Loans benefit from advantageous financing terms due to the EUs high credit rating.

How will Member States ask for the loans and get access to funds?

The allocation of the €150 billion envelope is demand-driven. Member States must submit a European Defense Industry Investment Plan to the Commission.

The Commission will assess the plans, including the size of the loan and pre-financing.

As a rule, Member States will implement the plans through joint procurement.

Member States need to report every six months on the progress of implementation.

How is the loan guaranteed?

The EU Bonds issued to finance the loans will be backed by the EU Budget headroom under the 1.4% EU GNI own resources ceiling.

How quickly can the Commission raise the funding needed?

The Commission will raise funds under its established unified funding approach, issuing EU-Bonds and EU Bills.

This approach allows the Commission to raise funding at the right time.

Which areas are supported by the loans?

The loans can support the joint procurement of defense products, focusing on seven priority investment areas such as air defense, artillery systems, and cyber security.

How would this common procurement work?

The loans will enable the necessary budgetary synchronization for joint orders through joint procurement by at least two partner countries.

The instrument strengthens the European Defense Technological and Industrial Base.

Are third countries allowed to participate?

EEA/EFTA countries and Ukraine can participate in joint procurements, but they will not be able to receive loans.