Greece will request €1.2 billion in low-interest loans from the European Union on Tuesday to support its defence procurement programme, Prime Minister Kyriakos Mitsotakis said on Tuesday.
“Our government continues to strengthen the armed forces’ deterrence and operational capabilities,” Mitsotakis told reporters, adding that additional loan requests could follow.
The funding will be requested through the EU’s Security Action for Europe (SAFE), a new financing instrument dedicated to defence procurement. While SAFE loans will be available until Dec. 31, 2030, applications must be submitted by the end of July.
SAFE will provide up to €150 billion in loans across the bloc, to be repaid over a 40-year period.
Greece plans to use the funds to improve military mobility and accelerate long-postponed upgrades, including the modernisation of M-113 armoured personnel carriers at a cost of €600 million, and the procurement of trucks and other utility vehicles estimated at €400 million.
Both projects were part of Greece’s 12-year defence procurement plan but had been scheduled for the latter stages, with implementation unlikely before 2036. SAFE will allow the projects to begin much earlier.
The funding is also expected to benefit Greek defence manufacturers, who are set to collaborate with European partners. According to SAFE rules, those partnerships must be formalised by November.
In Parliament, Defence Minister Nikos Dendias defended the government’s decision-making process after opposition MP Dimitris Mantzos criticised his limited involvement.
“I did not negotiate the loan. Defence ministers do not handle that. Of course, I would have liked more – as would you, and everyone here,” Dendias said.