Latvia Gets €3.5 Billion Loan to Boost Its Defence Industry

Council Implementing Decision – 26 January 2026

• The European Union will give Latvia financial help under Regulation (EU) 2025/1106, which creates the Security Action for Europe (SAFE) programme to strengthen the EU defence industry.

• Background

• The Commission asked all Member States to show interest in the SAFE programme. By 29 August 2025, 19 states had responded.

• On 9 September 2025 the Commission announced the tentative loan amounts for each state.

• Latvia submitted its request on 28 November 2025, together with a defence‑industry investment plan.

• Commission assessment

• The request meets all the conditions of Regulation (EU) 2025/1106, especially Articles 4, 7(2) and 16.

• The Commission confirmed that the plan is reasonable, will use common procurement, and will help the defence industry adapt to changes, improve availability of defence products, and ensure interoperability across the Union.

• The request also satisfies the procurement rules of the regulation.

• Decision

• Latvia’s request is approved.

• The Union will provide a loan of up to EUR 3 497 870 000.00.

• The Commission will immediately make EUR 524 680 500.00 available as a pre‑financing payment.

• The decision does not affect other EU procedures or rules on budgetary surveillance and conditionality.

• The decision is addressed to the Republic of Latvia and is signed by the President of the Council.