Amid a political crisis in Paris, a financial boost is on the horizon for the French military. On Tuesday, September 9, the European Commission approved the allocation of its new €150 billion defense support fund, Security Action for Europe (SAFE). France is among the main beneficiaries, with €16,2 billion in subsidized loans, the same level as Hungary. The objective: to modernize its equipment in areas deemed strategic, from anti-aircraft systems to drones and cybersecurity.
A mechanism designed to pool purchases
The principle is simple: the European Union borrows on the markets under more favorable conditions than some of its member states, and redistributes these funds in the form of loans. In exchange, the countries concerned must commit to purchasing equipment designed in Europe and to placing orders with at least one other member state. This logic aims to strengthen the interoperability of militaries, but also to support the continent's defense industrial base. Each country will have to specify its purchasing plans and partners by November. The first disbursements will take place in early 2026. Poland emerges as the big winner of the operation, with €43,7 billion allocated. This is followed by Romania (€16,7 billion), France and Hungary (€16,2 billion each), then Italy (€14,9 billion), and Belgium (€8,3 billion). States already benefiting from favorable borrowing conditions, such as Germany and the Netherlands, declined the offer.
Accelerate European rearmament
This plan is part of a dynamic acceleration of military spending in Europe. According to the European Defense Agency, investments in new equipment will jump by 39% in 2024, reaching €88 billion. SAFE should make it possible to cross the symbolic threshold of €100 billion by 2025 and consolidate the budgetary effort of the Twenty-Seven in 2026 and 2027. For Brussels, the challenge goes beyond the mere modernization of national armies. The mechanism could also be used to strengthen military aid to Ukraine, provided that equipment produced in Europe or on Ukrainian soil is purchased. Ursula von der Leyen and its Defence Commissioner, Andrius Kubilius, see this fund as a "historic success," materializing in less than six months the promise of a collective rearmament effort. Beyond SAFE, the Commission is already proposing a new step: massively increasing the Union's budget for the period 2028-2034, with €131 billion earmarked for defence and space, five times more than the current budget. An ambition which, if realized, would mark a decisive turning point in the construction of a true European defence.
