EU leaders present 2 mechanisms for financing defense investments worth EUR 800 bln, agree to coordinate strengthening Ukraine
European Council President António Costa and European Commission President Ursula von der Leyen, together with EU High Representative Kaja Kallas, held a video conference on Friday with Icelandic Prime Minister Kristrún Frostadóttir, Norwegian Prime Minister Jonas Gahr Støre, Turkish President Recep Tayyip Erdogan and British Prime Minister Keir Starmer, at which they presented the mechanisms for financing the necessary defence investments and the opportunities that this creates for partner countries.
"The first one – National Escape clause – will free up to EUR 650 billion of fiscal space in the national budgets of the Member States. It will have no conditions attached in terms of origin of the defence equipment. Military equipment from partner countries can therefore directly benefit from it," the document notes.
"The second one – SAFE of up to EUR 150 billion in loans. Norway and Iceland can already directly participate, since they are members of the EU's single market. Other countries, such as the UK, Canada or Türkiye, can immediately provide up to 35% of a defence product. To increase the industrial participation beyond 35%, a Security & Defence Partnership and a subsequent association agreement are necessary," the document notes.
President Costa and President von der Leyen conveyed the European Council's clear understanding of the exceptional times that Europe is going through. They shared the European Council's agreement that Europe needs to step up its investment in security and defence. In this context, they referred to Readiness 2030 - a roadmap aiming at ensuring that the EU has a defence industrial base and defence capabilities to act as a credible deterrence.
"Participants agreed to continue to coordinate efforts aimed at strengthening Ukraine and increasing Europe's security. Governments of Australia, Canada, New Zealand and Japan will be subsequently informed about the outcomes of the European Council," the document notes.
Following the European Council meeting, Costa and von der Leyen expressed support for strengthening Ukraine's position to achieve a just and sustainable peace.
"We will continue closely coordinating the European support to Ukraine. As Europe goes beyond the EU. Readiness 2030 is part of this strategy. Working with like-minded partners will be key to tackle the challenges of European defence," von der Leyen wrote on X.