The Riigikogu supports creating SAFE loan instrument to promote defence industry in Europe

The Chairman of the Committee Peeter Tali explained that Russia’s war of aggression in Ukraine had also undermined the security situation in Europe, which is why the EU was keen to strengthen its defence capability and industry. “For this purpose, the plan is to take out a loan of EUR 150 billion and create the SAFE loan instrument, which would allow the Member States to take out joint loans for urgent and large investments into their defence capabilities.”

The joint procurements in defence must be carried out through cooperation between at least two countries, and the other country could also be Ukraine or a NATO ally. “Estonia’s focus lies in a speedy increase in Europe’s defence capability, but also in supporting Ukraine, and promoting cross-border cooperation. We absolutely encourage Estonia’s defence industry to take part in the procurements,” Tali stressed, adding that it was also important to reduce bureaucracy in defence procurements.

The positions say that Estonia supports the main goals of the initiative: implementing the EU budget for supporting national defence investments, increasing the production capacity of the European defence industry, and helping Ukraine. Estonia also supports promoting cross-border cooperation and including SMEs with the application of the instrument.

The SAFE loan instrument is one of the five pillars in the White Paper for European Defence-Readiness presented by the President of the European Commission Ursula van der Leyen in March. The Ministers of Finance will discuss the proposal in May and its implementation could start as soon as in autumn or winter this year.

The positions of the Government on the proposal for establishing the Security Action for Europe (SAFE) to promote our defence industry were introduced at the sitting of the EUAC by the Minister of Defence Hanno Pevkur, as well as the Head of the EU and International Relations Department Martin Põder and the Head of the Tax and Customs Policy Department Erle Kõomets from the Ministry of Finance.

The European Union Affairs Committee decided to approve the positions of the Government, taking also into account the opinion of the National Defence Committee.

Riigikogu Press Service
Merilin Kruuse
+372 631 6592; +372 510 6179
merilin.kruuse@riigikogu.ee
Questions: press@riigikogu.ee

Link uudisele: The Riigikogu supports creating SAFE loan instrument to promote defence industry in Europe

Source: Parliament of Estonia