Slovakia to Borrow Up to €2.3 Billion from EU Defence Financing Instrument

Slovakia's government has approved a loan agreement worth up to €2.317 billion from the European Union's SAFE financing instrument, earmarked for strengthening the country's defence and security capabilities. The cabinet approved the proposal on Wednesday, put forward by the Finance Ministry, to sign the loan contract with the European Commission. The SAFE instrument — Security Action for Europe — is an EU-level financial tool designed to help member states rapidly scale up defence spending and procurement, partly in response to the security challenges posed by Russia's war in Ukraine. The move represents one of the largest single defence financing commitments in Slovakia's history, and signals a significant shift in the country's approach to military investment, which has historically lagged behind NATO spending targets. The funds are expected to be used to modernise and expand Slovak defence capacities.