EU grants Spain a €1 billion loan for defence equipment

The European Union has signed a €1 billion loan agreement with Spain for defence equipment.

European Commissioner for Defence and Space Andrius Kubilius announced the agreement on Saturday.

The loan is part of SAFE, an EU programme that offers long-term, low-cost loans to help countries improve military readiness and buy modern equipment.

The European Commission approved an initial group of loans for eight EU countries in January, including Spain.

Spain requested €1 billion and was allocated that amount, making it one of the smallest recipients.

Finland was also allocated €1 billion, while Greece and Denmark were assigned smaller amounts.

The EU says the loan will help strengthen defence in its southern and Mediterranean region.