The EU is investing up to 150 billion euros in joint defense through the new defense fund “Safe.” What does this mean for Austria? Between neutrality and security strategy, new opportunities arise for the economy and industry — ranging from weapons technology to tank manufacturing.
The EU member states have agreed on a new financing instrument to strengthen joint defense: through the program “Safe” (Security and Action for Europe), EU-budget-backed loans totaling up to 150 billion euros will be made available. These funds are intended to enable EU member states to jointly procure air defense systems, ammunition, and other military equipment.
The “Safe” program is part of Europe’s ongoing rearmament strategy in response to the increasing threat from Russia. It aims to establish military deterrence and prevent Russia from attacking EU states after Ukraine. Intelligence agencies warn that Russia could be capable of starting another war as early as 2030.
Defense spending could be exempted from debt rules
Another aspect of the EU plans concerns financing: in the future, defense expenditures could be excluded from the strict EU debt rules. Countries like Germany have already submitted such requests.
The agreement on “Safe” was reached in the Committee of Permanent Representatives of the member states and now needs to be approved by the EU Council of Ministers. The approval is considered a formality. Unlike the controversial Eurobonds, loans secured through the EU budget enjoy relatively broad acceptance because the liability of individual countries is limited.
The initiative for the new financing instrument comes from the EU Commission. As early as March, it called for a rethink in European security policy and urged preparation for a possible major war with Russia. In a recent strategy paper, the Commission under Ursula von der Leyen warned: “History will not forgive us for inaction.”
Increasing pressure to act also stems from statements by former US President Donald Trump, who questioned the unconditional US security guarantee for Europe. In view of a possible weakening of the transatlantic alliance, building an independent European defense capability is seen as urgent.
A multilingual professional experienced in Europe, Canada, and China, Herbert has developed invaluable networks in the automotive and energy industries. He has led high-profile projects involving ENBW, Mercedes-Benz Group, Siemens Group, and the Fraunhofer Institute.