RoC submitting interest in EU's 'SAFE' regulation, Defence Minister confirms

The Republic of Cyprus will on Tuesday, 29 July, officially submit its interest in the 'SAFE' regulation to the competent committee of the European Union, Minister of Defence Vasilis Palmas has confirmed.

On 30 November, the amount, needs, and programmes for Cyprus’ participation will be submitted in detail, while the Ministry of Defence will consult with the Ministry of Finance on the amount of the loan that will be requested in order not to burden the public debt of the Republic of Cyprus, he noted, speaking to CNA.

Responding to a quetsion asked by CNA, Palmas said that the Republic of Cyprus and the Ministry of Defence will today officially submit to the competent EU committee, their interest in the Security Action for Europe (SAFE) regulation.

According to the Minister, this regulation gives EU member states the possibility of obtaining low-interest loans on favourable terms, for armament programmes to cover their defence needs.

“It is a fact that this development with the SAFE regulation creates conditions for the development of the defence industry throughout the EU”, he said. At the same time, Palmas said, with this loan, the EU member states will be able to strengthen their defence capabilities, noting that a Union of 27 member states, and a bloc with a “gigantic” economy, must also have the corresponding capabilities in defence issues. Europeans understood how necessary this was, in the last two-three years, with the war in Ukraine and Russia’s threats, he added.

Palmas noted that these loans, burden each member state’s public debt. “Therefore, the amount we will draw will be done in full consultation with the Ministry of Finance, so that, by making this loan, we will not burden the public debt of the Republic of Cyprus, which is one of the best in the European Union”, he said.

Asked if there was a plan on how the amount requested by the Republic of Cyprus would be spent, the Minister said that on November 30, the amount and the needs would be submitted in detail, for the final approval of the competent EU authorities.

He noted that this regulation is optional and it is not a requirement for all member states to express interest.

Also read: Dr Tasos Kounoudes: Defence industry cluster welcomes state’s SAFE efforts but requires further details