Prague – The Czech Republic is exploring a loan of 52 billion crowns to acquire German Leopard 2A8 tanks through the new European Union financial mechanism, SAFE, which facilitates loans for military equipment. This announcement was made by Prime Minister Petr Fiala (ODS) during a press conference following a government meeting. It is important to note that this step is non-binding; the Czech Republic retains the option to decide against utilizing the loan. The government is expected to make a decision by November 29.
In June, Fiala revealed plans for the Czech Republic to purchase up to 77 Leopard 2A8 tanks for a total of 52.1 billion crowns. Contract negotiations for their acquisition are nearing completion, with the Ministry of Defense anticipating a signing in the summer.
The SAFE instrument allows EU countries to collaboratively procure military equipment and secure defense loans totaling up to 150 billion euros (3.7 trillion crowns). The proposal from the European Commission received approval from ministers for European affairs in late May. Countries are required to express their interest in loans by the end of July and indicate their estimated borrowing needs, while still retaining the option to proceed or not.
The Ministry of Defense, alongside the Ministry of Finance, assessed the advantages of Czech participation. The Ministry of Defense highlighted that involvement would primarily benefit the Czech Republic through the exemption from value-added tax. “The planned acquisition of Leopard 2A8 tanks, amounting to around 52 billion CZK, could be financed via the SAFE loan. The purchase would align with the German framework agreement,” stated the Ministry of Defense on its website. “The significance of the SAFE loan extends beyond financial aspects; it aims to enhance Europe’s defense capabilities through collective procurement of military equipment from the European defense sector. By engaging, the Czech Republic signals its intent to be involved in this initiative.” (July 23)
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