Using EU loans to finance Slovenian defense investments still in question

Brussels – Slovenia will not recklessly incur debt to increase defense spending, assured Finance Minister Klemen Boštjančič. According to him, it is still unclear whether it will utilize loans that will be available to member states for ordering military equipment under the new EU financial instrument worth up to 150 billion euros.

“Slovenia has not had and will not have in the next few years problems providing additional funds,” Boštjančič said regarding the increase in defense spending on the sidelines of the EU finance ministers’ meeting. He emphasized that our country is currently among the best in Europe in terms of financial indicators.

“So from this perspective, we have room to take on additional debt. But that certainly does not mean that we would recklessly go into debt just to achieve a certain percentage,” he stressed.

Slovenia has applied for the possibility of deviating from European budget rules for the purpose of investing in defense by the informal deadline that expired on April 30. However, according to the minister, this was done “as a reserve.”

It is also still unclear whether Slovenia will utilize loans for defense financing that will be available to member states for joint procurement of military equipment under the new EU financial mechanism.

Slovenia supports the proposal presented by the European Commission in March, although the minister pointed out that these loans will be debt that will need to be repaid.

Brussels presented the proposal for the financial mechanism, which member states are still negotiating, and the possibility of deviating from the union’s budget rules for defense purposes in light of the changed security situation in Europe and the world. Many European countries are also increasing their budget expenditures for defense. The Slovenian government announced last week that it will raise spending this year to two percent of gross domestic product, and by 2030 to three. (May 13)