Bulgaria’s parliament voted on July 30 to ratify agreements underpinning a 3.27 billion euro loan under the European Union’s Security Action For Europe (SAFE) instrument, as well as a separate deal to acquire seven French-made 3D radars for its air force. All parliamentary groups backed the votes except the smallest group, opposition pro-Russian party Vuzrazhdane.
SAFE is an EU instrument providing loans of up to 150 billion euro to help member states make rapid and significant increases in their defence investments. The July 30 vote approved the financial provision of the nine key projects for the development of the Bulgarian armed forces included in the National Plan for Investment in the European Defence Industry under SAFE.
The decision allows for financial assistance to Bulgaria in the form of a loan of up to 3,261,700,000 euro, as well as an advance from the European Commission of 15 percent of the granted amount, or 489,255,000 euro, to be provided within three months of the loan agreement entering into force. The loan runs for a maximum term of 45 years with a 10-year grace period for repayment of the principal, and funds remain available until the end of 2030.
The projects will be implemented through joint acquisition of defence products with leading EU countries, including Germany and France. Bulgaria plans to act as “lead country” for 155mm artillery ammunition and intends to conclude a contract with a joint venture between German manufacturer Rheinmetall and Bulgarian firm VMZ-Sopot.
In a separate vote, parliament ratified a project for the acquisition of seven new three-coordinate radars, along with communication and cryptographic devices and the integration of hardware and software into the command and control system of the Air Force. The order is part of a framework agreement between the defence ministries of Bulgaria and France through the Directorate General of Armaments (DGA); the contract was signed on June 12 in Paris and on June 22 in Sofia.
The ratification unlocks EU-backed financing as Bulgaria accelerates the modernization of its armed forces, a process that has gained urgency since Russia’s full-scale invasion of Ukraine. Sofia has been among the EU countries pushing to strengthen NATO’s eastern flank and has increased defence spending in successive budgets.
SAFE, proposed by the European Commission in March 2025 as part of the ReArm Europe plan, is designed to finance joint procurement of defence equipment such as artillery ammunition, air defence systems and drones. The instrument allows the Commission to borrow on capital markets and on-lend to member states at favourable terms, with joint procurement intended to reduce costs and strengthen the European defence industrial base.
Sources: The Sofia Globe, European Commission
Author: Europe Desk
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