Portugal Secures €5.8 Billion Loan to Boost Its Defence Industry

Summary

The European Council has decided to give Portugal a loan under the Security Action for Europe (SAFE) programme, which supports the European defence industry.

Background

• In May 2025 the EU introduced the SAFE instrument.
• The Commission asked member states to show how much money they might need.
• By 29 August 2025, 19 states had expressed interest.
• On 9 September 2025 the Commission sent each state a tentative loan amount.
• Portugal submitted its request on 29 November 2025, together with a defence‑industry investment plan.
• The Commission reviewed the request and found it meets all the rules of the SAFE regulation, including that the projects will use common or single procurement and will improve defence availability, interoperability and industry adaptation.

Decision

• Portugal’s request is approved.
• The EU will provide a loan of up to €5 841 179 332.00.
• An initial pre‑financing payment of €876 176 899.80 will be made immediately.
• The decision follows EU rules on solidarity, proportionality and transparency and does not affect other EU procedures.

The loan is aimed at helping Portugal strengthen its defence industry and meet European security objectives.