The Ministry of Defence, in cooperation with the Ministry of Finance, analysed the feasibility and benefits of participation, citing VAT exemption as a major advantage. “The significance of the SAFE loan is not only financial. Its aim is to contribute to strengthening Europe’s defence through joint procurement of military equipment from the European defence industry,” said Černochová.
The planned purchase, valued at approximately CZK 52 billion, would take place through accession to a German framework agreement. Member states must notify the European Commission of their interest in the loan and estimated borrowing needs by the end of July.
Loan funds will cover equipment deliveries completed by the end of 2030, with exact terms to be negotiated with the European Commission in the coming months. The Czech government would need to approve a formal loan request by the end of November.
The Leopard 2A8 acquisition is part of the Ministry of Defence’s broader effort to modernise the Czech Army’s equipment. It also aligns with NATO Capability Targets aimed at strengthening alliance defence capacities.
Source: Czech Ministry of Defence and Armed Forces.
