Greece will formally request €1.2 billion (approx. AUD 1.95 billion) in low-interest loans from the European Union on Tuesday, earmarked for defense procurement, Prime Minister Kyriakos Mitsotakis announced.

“Our government continues to strengthen the armed forces’ deterrent capacity and operational readiness,” Mitsotakis said, adding that additional loan requests may follow.

The funding will come through the EU’s new Security Action for Europe (SAFE) initiative—a financing mechanism dedicated exclusively to defence spending. Although SAFE loans will be available until December 31, 2030, applications must be submitted by the end of July.

SAFE provides up to €150 billion (approx. AUD 244 billion) in loans to EU member states, repayable over 40 years. Greece plans to use the funds to accelerate military mobility projects, including the upgrade of M-113 armored personnel carriers, estimated at €600 million (approx. AUD 976 million), and the procurement of trucks and general-use military vehicles costing €400 million (approx. AUD 651 million).

These projects had been scheduled for completion in the later stages of the country’s 12-year defence plan—around 2036—but the SAFE initiative enables their advancement. As per EU funding rules, defense industry partnerships between Greek and other European companies must be finalised by November.

In Parliament, Defense Minister Nikos Dendias defended the government’s loan strategy against criticism from opposition MP Dimitris Mantzos, who questioned his involvement.

“I didn’t negotiate [the loan]. It is not the defence ministers who do that. Of course I would like something more, like you, like all of us here,” Dendias responded.