EU Grants Bulgaria €3.3 Billion Loan to Boost Defence Production

The Council of the European Union has decided to give Bulgaria a loan under the Security Action for Europe (SAFE) programme.

• Bulgaria submitted a request on 27 November 2025, together with a defence‑industry investment plan.
• The Commission checked the request against the rules of Regulation (EU) 2025/1106 and found that it meets all conditions, including that the planned activities will use common or single procurements, speed up the defence industry’s adaptation, and improve availability and interoperability of defence products across the EU.
• The decision is made after 19 other Member States had already expressed interest in the SAFE loan scheme (by 29 August 2025) and after the Commission announced tentative loan allocations on 9 September 2025.
• The Council will make available to Bulgaria a maximum loan of €3 261 700 000.
• An upfront pre‑financing payment of €489 255 000 will be released immediately.
• The loan is subject to EU rules on solidarity, proportionality, transparency and the protection of the Union’s financial interests.
• The decision is addressed to the Republic of Bulgaria and is made in Brussels on 15 January 2026.