SAFE is a new EUR 150 billion EU financial instrument that will provide the Member States with long-term loans on favourable terms (up to 45 years with a 10-year grace period), backed by an EU budget guarantee. SAFE will promote joint defence procurement, ensuring cooperation between the Member States' militaries, reducing costs and strengthening the European defence industry.
"The instrument SAFE proposed by the European Commission is an important tool for increasing defence investments and strengthening the capabilities of the European defence industry, as well as providing military assistance to Ukraine. In order to use funds more efficiently, cooperation between countries in joint procurement is encouraged. In this case, it is important to create opportunities to participate in the instrument together with other NATO countries that are not part of the EU and the European Economic Area, such as the USA, the United Kingdom, and Canada," R. Šadžius emphasized. “When assessing the countries' applications for SAFE loans, priority should be given to countries bordering Russia and Belarus.
SAFE loans will support joint defence equipment procurement and infrastructure preparation in seven priority areas: air and missile defence, artillery systems, missiles and ammunition, drones and counter-drone systems, strategic capabilities and critical infrastructure (including space), military mobility, cybersecurity, artificial intelligence, and electronic warfare.
At the ECOFIN meeting, ministers will also exchange views on the economic and financial impact of Russia's aggression against Ukraine and discuss progress in implementing the main support instruments for Ukraine: the EUR 50 billion G7 loan facility for Ukraine, backed by frozen Russian assets, and the EU-funded Ukraine Facility, which provides loans and grants. The total amount of EU funds disbursed to Ukraine under these instruments currently amounts to almost EUR 26 billion.
"It is important that the financial support measures for Ukraine are implemented smoothly and that Ukraine's financial needs for this year are covered. However, if necessary, we must be ready to provide additional financial and military support to Ukraine, especially considering the prospect of covering financial needs for next year. We must also continue to put pressure on the Russian economy, therefore we welcome the 17th package of sanctions submitted by the EC," R. Šadžius emphasized.
At the ECOFIN meeting, ministers will also discuss the Directive on import VAT rules for distance sales of imported goods, the Savings and Investment Union (SIU) Communication and the follow-up to the G20 Finance Ministers and Central Bank Governors meeting. The meeting will also approve the revised Recovery and Resilience Plans (RRPs) of Slovakia, Portugal, the Netherlands and Spain.
At the Eurogroup meeting, ministers will discuss the Banking Union reports: they will hear presentations by the Chair of the Supervisory Board of the European Central Bank (ECB) and the Chair of the Single Resolution Board (SRB). They are expected to exchange views on the financial situation of the euro area and the challenges in the current geopolitical context.
In addition, preparations for the European Stability Mechanism (ESM) annual meeting in June will be discussed, the results of the international meetings held in April will be discussed, and progress in the preparatory phase for the Digital Euro will be reviewed. Germany’s new Minister of Finance Lars Klingbeil will present his government's priorities in the economic and financial fields.
Also, during his visit to Belgium on 12-13 May, the Minister of Finance will have bilateral meetings with the Ministers of Finance of Belgium, France and the Netherlands, Director-General of the EC Budget Department S. Riso, and EC Commissioner V. Dombrovskis.
