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EU foreign policy chief says Turkey has access to bloc’s defense loans under new initiative

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The EU will include Turkey in its defense industry financing and joint procurement programs, granting access to low-interest loans under a new initiative, according to EU High Representative for Foreign Affairs and Security Policy Kaja Kallas, Turkey’s state-run Anadolu news agency reported.

Speaking to a group of Turkish journalists at the European Commission, Kallas outlined Turkey’s new position within the EU’s strategic defense framework.

The inclusion is enabled through the bloc’s new Security Action for Europe (SAFE) initiative, which aims to strengthen Europe’s defense production and coordination.

“Now Turkey, as a candidate country, also has access to SAFE loans, for example, for joint projects with the European countries,” Kallas confirmed.

While Kallas’s remarks marked a positive step for security cooperation, the detailed structure of the partnership is embedded in a broader defense program formally approved by the EU.

The scope of Turkey’s participation, financial conditions and political terms are defined under this new initiative.

The European Council approved SAFE on May 27 as a €150 billion plan to support collaborative defense projects and reduce Europe’s reliance on outside military partners.

SAFE is part of a wider €800 billion European defense strategy for 2030 that includes reassessing the EU’s dependence on NATO.

One of SAFE’s core features is the inclusion of non-EU countries. Candidate countries such as Turkey and nations with existing defense ties to the EU may join through formal cooperation agreements.

For Turkey, this provides a channel for deeper involvement in European defense efforts, particularly as its domestic defense industry grows, with emphasis on drones and advanced systems.

Participation requires a formal agreement under Article 17 of the regulation adopted on May 20.

Greece had called for a requirement that all non-EU partnerships be unanimously approved by EU members, invoking Articles 212 and 218 of the EU Treaty. The proposal was opposed by Germany and EU legal experts and was ultimately dropped.

However, the European Commission clarified that Article 212 will remain the legal basis for such agreements. Greece issued a separate statement to record its reservations and prevent legal ambiguity.

If concluded under Article 212, an EU-Turkey agreement could establish broad cooperation covering technical, financial and industrial elements of defense, with EU oversight to ensure compliance with democratic standards.

Projects involving non-EU partners like Turkey will require majority approval by EU member states.

SAFE will provide low-interest, long-term loans to increase defense production across Europe. At least 65 percent of each project must be carried out by EU-based firms, while non-EU partners can contribute between 15 and 35 percent.

The European Commission will raise funds on financial markets and offer 45-year loans to participating countries. Project submissions are due by June 30, 2027, and the €150 billion is expected to be allocated by 2030.

Despite the potential for defense cooperation, political tensions between Turkey and the EU remain. The European Parliament has repeatedly criticized Turkey for democratic backsliding.

Rights groups such as Freedom House have warned of declining civil liberties and the rule of law under the government of President Recep Tayyip Erdoğan.

In its 2025 report Freedom House rated Turkey as “Not Free,” citing deepening authoritarianism and suppression of dissent.

The European Parliament and human rights organizations have also flagged the diminishing space for civil society and independent journalism in Turkey.

In March İstanbul Mayor Ekrem İmamoğlu, Erdoğan’s main political rival, was arrested on corruption charges widely seen as politically driven. His arrest sparked mass protests and economic turmoil, including a steep fall in the Turkish lira and a $40 billion central bank intervention, according to the European Bank for Reconstruction and Development.

The EU Agency for Fundamental Rights’ 2024 report detailed ongoing issues in Turkey regarding judicial independence and freedom of expression.

The Council of Europe has launched infringement proceedings against Turkey for refusing to comply with European Court of Human Rights rulings. EU institutions continue to press for greater transparency and judicial reform.

Officials from Turkey’s Foreign Ministry told Euronews Turkish that Turkish companies and institutions’ inclusions in SAFE and related programs will serve as a litmus test for the EU’s commitment to equitable cooperation.

Turkey’s growing defense sector and geostrategic importance remain difficult for EU states to ignore. Germany and Spain are among those supporting closer engagement with Ankara.

Italy, once cautious about defense cooperation with Turkey, is now quietly exploring avenues for regional security dialogue.

The SAFE initiative offers a formal route for Turkey to develop stronger defense ties with the EU. For Brussels, the challenge will be to reconcile strategic needs with commitments to democratic values.

The way the EU handles Turkey’s role in SAFE could shape not only EU-Turkey relations but also the future course of Europe’s defense policy.

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