ROME — Italy is considering using a European Union loan deal to pay for new tanks and armored vehicles supplied by Germany’s Rheinmetall, a source has told Defense News.

The money for Lynx vehicles and Panther tanks would come from cheap so-called SAFE loans organized by the EU to help member states beef up their military strength as Russia threatens the bloc’s Eastern border.

Earlier this year EU officials said they would organize the low-cost loans worth €150 billion euros for members, then announced in September that Poland had been allocated €43.7bn in loans followed by Romania with €16.7bn, France and Hungary on €16.2bn and Italy with €14.9bn, among other recipients.

States have until Nov. 30 to supply the EU with details on how they will spend the cash, before funds are released

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