The European Commission would view it as “very, very positive” if Italy used the full Safe funds available, amounting to €14.9 billion, also because it has presented a very “solid” plan for how it intends to use those resources. Defense spokesperson Thomas Regnier emphasized this during a press briefing in Brussels, which from this week will be held on Tuesdays and Thursdays until the end of the summer recess.

“We have no time to lose,” Regnier stresses — this is the Commission’s clear position regarding Safe and its implementation. Why? Because Safe plays a crucial role in Europe’s security. We see this every day in Ukraine. We have witnessed drone incursions in Romania, to cite just one of the member states targeted.

Italy, Regnier recalls, “is the member state that requested €14.9 billion and received an approved budget of €14.9 billion from us. Now, what is important for us is to move quickly to the next phase. It is clear that the Italian industry plays a key role in Europe’s security. So, in the ideal situation, we would certainly like Italy to honour the announced €14.9 billion, and this would be a very, very positive development.”

Now, Regnier continues, “the important thing is that we can proceed with signing the loan agreement, because we need to disburse the funds to get the project underway. This is the timetable we are considering.”

If there were “budget changes“, meaning if Rome decided to use less than €14.9 billion, then, he notes, “the situation would become even more urgent, because those funds would have to be reallocated through a new call to other member states that might want to apply for additional loans. This is the situation. Key message: we have no time to lose. We must accelerate the process and move to the next phase.”

The unallocated portion of the Safe funds could amount to “€10 billion”, an estimate “based on many factors”, including “the fact that some loan agreements have not yet been signed. Obviously, there is the Italian situation that we must clarify as soon as possible, but today — he notes — a reassuring message from Italy arrives, showing the willingness to respect the budget. This is what we must keep in mind and remember about this message.”

And then, he adds, “there is still the Hungarian plan that must be approved and which represents an additional factor of uncertainty. So I believe we can safely assume that the landing zone will be around €10 billion.”

Regarding the timing and the wait until December to sign the loan agreement, the spokesperson reiterates that “this timetable is not suitable for us. We must proceed much faster because, if there is even the slightest possibility that Italy accepts less than €14.9 billion, then the regulation provides a legal deadline that obliges the Commission to relaunch a new call and reallocate those funds within this year. For this reason we need more than a couple of days in December.”

In conclusion, Regnier says, “we received a very solid plan from the Italian authorities. It was approved very quickly by the Commission and the Council. So, let’s move on to signing the loan agreement and the next steps,” he concluded.