Greece’s gains from ReArm Europe

In bid to maximize Greece’s payment from Europe’s caller rearmament programme and its implementation tools, accrued defence spending should beryllium directed toward well-designed investments with a precocious developmental impact—such arsenic infrastructure, energy, and probe and innovation projects—so arsenic to support different sectors of the system and make a stronger and much resilient productive basal overall, the Bank of Greece emphasized successful its Monetary Policy Report 2024–2025.

The Bank of Greece considers the European rearmament program ReArmEurope/Readiness 2030 an accidental for Greece. In particular, it pointed retired that the SAFE (Security Action For Europe) fiscal instrumentality tin connection support to countries facing indebtedness sustainability challenges oregon already having precocious defence expenditures, by providing favorable financing terms for armament programs. Countries that already transmission a important percent of their fund to defense, such arsenic Greece, Poland, Finland, whitethorn payment much from this mechanism, which  functions arsenic a signifier of indebtedness refinancing under much favorable terms.

What SAFE offers

The SAFE instrumentality allows the use of resources raised done associated European borrowing to support defence spending, reducing unit connected nationalist budgets and strengthening defence capableness and information successful associated European defence programs without further unit connected borrowing costs.

However, a prerequisite for the budgetary benefits of this mechanics is that the outgo of financing done SAFE is little than the nationalist outgo of borrowing.

As the Bank of Greece noted, Europe plans to mobilize up to 800 cardinal euros, of which 150 cardinal euros will travel from the caller SAFE (Security Action For Europe) fiscal instrument, which will supply semipermanent loans connected favorable terms to support communal defence procurement. The loans will person a maximum duration of 45 years and a 10-year grace play for the repayment of the capital. As a information for their entree to the caller loans, EU subordinate states will person to acquisition astatine slightest 65% of their weapons systems from suppliers successful the EU, Norway oregon Ukraine.

The allocation of funds to subordinate states will beryllium determined based connected demand, without a predetermined allocation criterion.