12. Deputy Catherine Callaghan asked the Tánaiste and Minister for Defence to provide an update on Ireland's proposed participation in the EU's SAFE initiative; and if he will make a statement on the matter. [59616/25]

Sentiment score: 0.21

I thank the Tánaiste for his response. It is very important to acknowledge the marked increase in our defence budget. We are making good progress and it is really important that this momentum should continue. I mention the second part of the SAFE regulation, which is the loan. One way I would have liked to have seen this momentum continue was through availing of the SAFE loan. It was a loan that was very competitively priced and had a long maturity and for me it is a missed opportunity. I understand fully the logic of not wanting to borrow money when we have a very healthy surplus thanks to the work and commitment of the Ministers, Deputies Donohoe and Chambers, but this loan had other advantages too. It would have really bolstered Ireland's commitment to European solidarity and security, especially in light of the ongoing war in Ukraine and increasing threats to our critical infrastructure, including undersea cables that are vital to Ireland and the EU's digital economy, but also to our democracy.

Sentiment score: 0.49

I thank the Tánaiste. That is very reassuring to hear. The logic of creating the SAFE regulation was to ensure EU money stayed in the EU to support and encourage European enterprises to be developed with the long-term goal being to strengthen Europe's industrial and technological base. At a recent defence committee meeting, the Department of Defence said that out of the €340 billion spent on defence purchases by European countries, 80% of that went outside the EU. It is to be applauded, therefore, that the EU is working in this way to ensure our industries and economies will benefit from the necessary increase in defence spending across the Union. There is no doubt that in a small nation like ours the opportunities for economies of scale in procurement are greatly increased by us joining other defence forces across the EU for procurement purposes. As the Tánaiste has said, we get better value for the State's money and equipment can be delivered more quickly too. What measures is Ireland taking to ensure our SMEs are promoted to other member states as being open for business and part of SAFE procurement options to ensure Irish SMEs have the opportunity to join international consortiums and secure opportunities in high value sectors?

Sentiment score: 0.63