172. Deputy Duncan Smith asked the Minister for Defence if the Government is prepared to utilise EU funding to increase defence spending; and if she will make a statement on the matter. [43410/26]

At present, Security Action for Europe (SAFE) is the only EU-level instrument specifically providing Member States with access to financing for the direct procurement of defence-related equipment.

I recognise that the SAFE regulation represents a potential additional source of financing for defence investment, and I have indicated that Ireland should actively consider participation should the opportunity arise.  While it is anticipated that a second round of SAFE loans may emerge, there are currently no confirmed plans or timelines from the European Commission.

Under the existing and ongoing process, Member States have submitted requests for financing supported by their respective Defence Investment Plans, which are now under assessment by the Commission. Allocations will be made from the €150?billion facility once this evaluation is complete.

Only at the conclusion of this process will the Commission be in a position to determine whether any unallocated funding may form the basis of a potential second round. Accordingly, it is too early to determine the scale, timing, or availability of any further loan opportunities under the SAFE mechanism.

Should the Commission initiate a second round of funding, potential drawdown of SAFE funding will require government approval.