EU countries reach agreement on $170B loan plan to boost defense spending

Amid a push for Europe to do more to defend itself, EU countries have agreed on a €150 billion ($170 billion) loan plan to boost defense spending through 2030, including joint projects, new procurement, and restocking.

European Council President Antonio Costa on Wednesday confirmed the agreement on X, calling it "an important step towards a stronger Europe."

"It delivers on the commitments made by EU leaders in March, helping member states invest jointly in European defence and strengthening our shared security," he said.

"The more we invest in equipping our armies, the better we will deter those who wish us harm," Poland, which holds the EU's rotating presidency, said on X.

Amid the new US administration's pressure for NATO allies-most of them also members of the EU-to boost defense investments, the EU began seeking new defense strategies.

As part of these efforts, the European Commission unveiled a new White Paper strategy in March aiming to boost military spending and production by 2030. A key component, the Security Action for Europe (SAFE) instrument, includes the loan package of up to €150 billion.

In addition to EU member states, countries that have signed partnership agreements with the bloc on security and defense are also eligible to participate in SAFE.

The EU has established such agreements with Norway, Moldova, South Korea, Japan, Albania, and North Macedonia, all non-EU states.

At a EU-UK summit in London on Monday, both sides agreed that the British defense industry could potentially also gain access to the SAFE plan.