SAFE would provide long-term EU-backed loans of up to 45 years, with a 10-year grace period, to member states for defense procurement and industrial projects. It is being promoted under Article 122 of the EU treaties, usually applied during economic emergencies.
However, the Bundestag report highlights that this legal approach “is not universally accepted,” warning that “even the financing of defense-related goods and services” could violate the treaty ban, particularly when “intended for Ukraine and not for EU member states.”
SAFE was approved last month by member countries, including Germany. The parliamentary report is unlikely to affect German government policy.
The German defense ministry did not immediately respond to a request for comment.
The report’s criticism extends beyond legal issues. Composed of legal and policy experts, the authors express doubts about SAFE’s economic impact, citing “estimated expenditure multipliers between 0.4 and 1.0,” which are lower than those for other public investments like infrastructure or education.
They warn that “a significant portion of the positive effects of increased defense spending may occur abroad, particularly in the USA,” depending on the supplier’s location.













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