The defense industry is uncertain about how countries will use billions from the EU

According to Euractiv, European arms manufacturers confirm that they are still unclear about how governments intend to use the EU's €150 billion credit program for joint defense procurement. The European Union announced the Security Action for Europe (SAFE) program in May last year.

Since then, 19 member states have submitted national plans to the European Commission describing how they intend to use the allocated funds and what equipment they plan to purchase. However, representatives of the defense industry claim that they have only limited access to this information.

Jan Grabowski, CEO of Polish state-owned arms manufacturer PGZ, noted that the company does not yet know what projects Poland plans to finance. Poland is the largest recipient of the SAFE program, with €43.7 billion allocated.

Similar uncertainty was confirmed by other industry sources, according to which companies rely mainly on informal contacts with defense ministries.

Manufacturers point out that without greater transparency, it is difficult for them to prepare for long-term production and capacity expansion. Although some countries have already announced specific projects, the overall picture remains unclear.

The Commission has not yet completed its assessment of all national plans, and their approval by the Council is a condition for the disbursement of the first funds.

(max)