The Czech Republic is interested in a loan from the EU instrument amounting to 52 billion CZK for Leopard 2A8 tanks

Prague – The Czech Republic is interested in a loan of 52 billion crowns for German Leopard 2A8 tanks. It can obtain this by participating in the new European Union financial instrument SAFE, which allows loans for military equipment. This was stated by Prime Minister Petr Fiala (ODS) at today’s press conference after a government meeting. However, this is a non-binding step; the Czech Republic can still decide whether to actually use the loan. According to the Prime Minister, the government will decide by November 29.

Last June, Fiala announced that the Czech Republic plans to purchase up to 77 Leopard 2A8 tanks for 52.1 billion crowns. Negotiations on the contract for their acquisition are in the final phase, with the Ministry of Defense expecting to sign it in the summer.

Thanks to the new SAFE instrument, EU countries will be able to jointly purchase military equipment and obtain loans for defense of up to 150 billion euros (3.7 trillion crowns). The European Commission’s proposal was approved by ministers for European affairs at the end of May. Countries must express interest in the loans by the end of July and inform the Commission how much they roughly want to borrow. They can then still decide whether to actually take advantage of the option.

The possibilities and advantages of Czech involvement were analyzed by the Ministry of Defense with the Ministry of Finance. According to the Ministry of Defense, it would be advantageous for the Czech Republic primarily because it would mean exemption from value-added tax. “The planned purchase of Leopard 2A8 tanks amounting to approximately 52 billion CZK could be financed from the SAFE loan. The purchase would take place by joining the German framework agreement,” stated the Ministry of Defense on its website. “The significance of the SAFE loan is not just financial. Its aim is to contribute to strengthening Europe’s defense capabilities through joint purchases of military material from the European defense industry. By participating, the Czech Republic signals that it wants to be part of it. (July 23)