Brussels says Portugal must be ready for SAFE payout

Portugal’s first €876 million tranche under the EU’s SAFE military loan programme has still not been paid, despite earlier expectations that the money could arrive in March. In comments to ECO, the European Commission said the timing now depends on when each member state is ready, a point that matters for Portugal’s defence procurement plans under its €5.8 billion allocation.

“As soon as a Member State is ready, the Commission will proceed without delay with the signing of the loan agreement and the first disbursements,” Commission spokesperson Thomas Regnier told ECO/eRadar. Portugal was among the first seven countries to have its SAFE envelope approved by the European Commission and the Council, but the expected date for the first payment has slipped from March to April, then May, and more recently to June or July, according to Defence Minister Nuno Melo.

Asked what was still missing for Portugal to be considered ready, and why the timetable had moved again, the Defence Ministry did not provide further detail. In May, Melo had said the schedule depended on “EU timetables” and that Portugal still needed a cabinet resolution to set up the programme’s governance, auditing and oversight structure. That step was later approved by the government, including a mission structure to manage SAFE loans and an independent commission to monitor the investments.

The SAFE regulation says pre-financing depends on the loan agreement entering into force and may also be conditional on operational arrangements covering implementation, documentary evidence, controls and audits. Of the 19 countries whose SAFE programmes have already been approved, only Lithuania and Poland have signed contracts so far, and only Poland has received a first tranche, worth €6.6 billion.

The loans are intended to finance defence equipment including frigates, two-wheeled armoured vehicles, drones and satellites, with deliveries required by 2030. For Portugal, the delay means the start of funding for those purchases remains tied to the completion of the programme’s contractual and oversight framework.

Originally published at Eco.pt