EU to start talks with UK, Canada on participation in €178B defense scheme

By Melike Pala

BRUSSELS (AA) - The EU Council on Thursday gave the green light to open negotiations with the UK and Canada on their participation in the bloc's €150 billion ($178 billion) defense loan instrument, Security Action for Europe (SAFE) scheme.

Talks will be led by the European Commission and focus on conditions for British and Canadian firms to take part in procurements financed under the SAFE.

The agreements, once finalized, will require approval from the European Parliament.

SAFE, adopted by EU leaders in May, will provide member states with long-term, competitively priced loans to boost investment in defense equipment. Funding will be allocated based on national plans and requests from governments.

While the loans will be available only to EU member states, Ukraine and EEA-EFTA countries will also be eligible to participate in joint procurement under the scheme.

SAFE is the first pillar of the European Commission's ReArm Europe/Readiness 2030 plan, which aims to mobilize up to €800 billion in defense spending over the next five years.