Swedish Defense Minister Pal Jonson clarifies why Sweden won’t join the EU’s SAFE program despite its favorable defense financing terms.
Russian Economy Suffering, Says Swedish Minister
Swedish Defense Minister Pal Jonson assessed in an interview with “Rzeczpospolita” that the war in Ukraine “is certainly not being won by Russia.” In the past year, Russians occupied only 0.7% of Ukrainian territory at the cost of over 300,000 killed and wounded. The Russian economy is bleeding, the deficit is growing, state reserves are dwindling, and banking system problems are accumulating, Jonson stated.
He emphasized that Russians were unable to carry out any significant offensive on the front last year, failing to capture any major city. Their goal was to occupy all of Donbas in the past year, but they failed in this objective as well.
Sweden Declines SAFE Program Participation
Regarding the SAFE program, Jonson explained that Sweden will not participate not because the program is flawed, but because as the third lowest debt nation in the European Union, Sweden can borrow on international markets under more favorable terms than the Union itself.
He noted that Sweden still borrows for military modernization, with plans to allocate 30 billion euros by 2035 for this purpose.
SAFE Program Legislation Returns to Polish Parliament
On Thursday, the Polish Senate adopted with amendments the bill implementing the EU SAFE program. The vote was 61 in favor and 26 against. The chamber accepted three government amendments, one specifying that funds for repaying EU loans under the program will not come from the Ministry of National Defense budget.
The other amendments introduce service oversight over SAFE fund expenditures and require the defense minister to report to parliament on the program’s implementation. The SAFE program totals 150 billion euros, with Poland set to receive nearly 44 billion euros in preferential loans for over 130 projects. Poland may receive a 15% advance payment between March and April, with capital repayments beginning in 10 years and extending to 2070.