What Happened
Unused Capacity Sparks Interest in Defence Procurement
The European Union’s SAFE defence-loan scheme has approximately €20bn of unused capacity, following reduced borrowing requests from Hungary and Italy. The Commission may use this opportunity to promote collaborative procurement projects, addressing capability gaps in areas such as air defence, ammunition, and drones. Ukraine can participate in projects, but the borrowers remain EU member states. The Commission intends to launch another call this year, which could shape procurement decisions for 2027 and beyond, as reported by EU Today.