Portugal seeks €5.8 billion in EU SAFE loans to strengthen its armed forces and domestic defence industry amid security concerns over Russia.
Portugal applies for EU defence programme funding to enhance military capabilities and support local industry (Photo: File)
LISBON: Portugal has applied for 5.8 billion euros ($6.73 billion) in low-cost loans under a new EU defence programme to boost its armed forces capabilities, Cabinet Minister Antonio Leitao Amaro said on Friday.
The programme, called Security Action For Europe (SAFE), is an EU initiative worth 150 billion euros, which boosts defence capabilities, closes critical gaps, and procures equipment as Europe faces potential threats from Russia. It offers long-maturity loans of up to 45 years with a 10-year grace period for repayments.
"This is a very important effort to empower our armed forces so that they can defend our territory, our maritime space, and Europe as a whole," Leitao Amaro told reporters. He gave no details on what equipment Portugal plans to buy, but said the government aims to "strengthen the Portuguese industry".
Spending plans from countries will be viewed by the European Commission, which expects to approve the first payouts in early 2026. The European Commission is urging EU countries to identify key defence needs and launch major pan-European projects to strengthen defence against Russia, emphasizing that equipment should be sourced from within Europe wherever possible.
