Finland to use new EU loan financing to bolster defence

Finland has decided to use EUR one billion in financing from the EU’s Security Action for Europe (SAFE) financial instrument to strengthen the defence industry. The plan is to use the financing for multinational joint procurement that will strengthen Finland’s ground combat capabilities and for developing drone performance capabilities in cooperation with Ukraine and its allies. The Ministerial Committee on Economic Policy decided on the matter on Tuesday 18 November.

“This decision will boost Finland’s defence industry capacity, deepen European defence cooperation and create growth opportunities for Finnish companies,” said Prime Minister Petteri Orpo.
 
“This is an important decision that will strengthen Finland’s defence, improve the conditions for the Finnish defence industry and promote European defence cooperation and joint procurement,” said Minister of Defence Antti Häkkänen.
 
The main benefits of the SAFE instrument include increased orders for Finnish defence industry products together with partner countries and the strategic recognition of Finnish projects in the EU’s defence industry policy. The instrument will also support the Ukrainian defence industry and promote its integration into the European defence cooperation framework.
 
SAFE is the EU’s new financial instrument for Member States that want to accelerate defence industry investments through common procurement. 
The use of the SAFE loan is expected to diversify Finland’s fundraising channels and support the continuity of loan financing. Loans issued through the SAFE instrument also have a long repayment period (45 years).

Inquiries: Tuomas Tikkanen, Senior Adviser to the Prime Minister in European Affairs, tel. +358 40 523 5768 and Niklas Backlund, Special Adviser, Ministry of Defence, tel. +358 295 140 131

Email addresses are in the format [email protected].