Latvia signs €3.5B EU defense loan agreement under SAFE program

Latvia has locked in a €3.5 billion loan through the European Union’s Security Action for Europe program, joining a growing roster of nations tapping into what amounts to the bloc’s most ambitious defense financing mechanism ever created.

The signing ceremony in Riga brought together EU Defence Commissioner Andrius Kubilius and Latvian Prime Minister Andris Kulbergs. Latvia is now the eighth country to formalize an agreement under SAFE, following larger nations including Poland and France.

Where the money goes

The funds are earmarked for a specific set of military priorities: unmanned aerial systems, anti-drone technologies, guided missiles, and expanding Latvia’s domestic defense industrial capacity.

Kubilius offered praise for Latvia’s progress in drone and counter-drone technology, describing it as a model for other EU member states.

The agreement also includes a provision for limited assistance to Ukraine through 2028.

The SAFE program in context

SAFE, established under Regulation (EU) 2025/1106, represents the EU’s largest-ever defense financing strategy. The total lending facility stands at €150 billion, designed to offer member states competitively priced, long-term loans for defense investments.

Latvia’s €3.5 billion allocation represents roughly 2.3% of the total facility.

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