Estonia Gets a €2.3 Billion Loan to Boost Its Defence Industry

Summary

The European Commission has decided to give Estonia a loan under the Security Action for Europe (SAFE) program, which is part of Regulation (EU) 2025/1106.

• In May 2025 the Commission asked EU member states to state how much money they might need. By 29 August 2025, 19 states had shown interest.
• On 28 November 2025 Estonia submitted a request for financial help, together with a defence‑industry investment plan.
• The Commission checked the request against the rules in Regulation (EU) 2025/1106 and found that Estonia meets all the conditions, including that the planned projects will use common or single procurement and will help the defence industry adapt to changes, improve availability of defence products, and ensure interoperability across the EU.
• The Commission also confirmed that Estonia’s request is fair compared with other member states’ requests and follows the principles of equal treatment, solidarity, proportionality and transparency.

Decision

1. Estonia’s request is accepted.
2. The EU will make available to Estonia a loan of up to €2 343 897 000.
3. The Commission will immediately provide €351 584 550 as a pre‑financing payment.
4. The decision is addressed to the Republic of Estonia and is made in accordance with Regulation (EU) 2025/1106 and related EU rules.