Eight Countries Receive SAFE Funding Approval
The European Commission has approved national defence investment plans from eight EU countries under the Security Action for Europe (SAFE) programme. Estonia, Greece, Italy, Latvia, Lithuania, Poland, Slovakia, and Finland will share €74 billion in loans, with Poland accounting for €43.7 billion alone.
SAFE is part of the EU’s broader Readiness 2030 strategy, which aims to mobilise hundreds of billions of euros in defence spending by the end of the decade, amid growing concerns that Russia could threaten another European nation. This marks the second round of approvals following €38 billion granted to Belgium, Bulgaria, Denmark, Spain, Croatia, Cyprus, Portugal, and Romania in January.
From Strategy to Strength
Defence Commissioner Andrius Kubilius described the approvals as a turning point. “We are no longer just drafting strategies; we are building a hard-power reality,” he said. “This is a clear signal to European industry and our adversaries alike: Europe is serious about its strength and sovereignty, our militaries need the best and on time.”
So far, 19 member states have applied to access SAFE funds, with allocations provisionally agreed last September. The plans from Czechia, France, and Hungary are still awaiting approval. EU ministers have four weeks to finalise the current applications, with the first payments expected in March 2026.
Boosting European Defence Industry
SAFE funding is designed to support the purchase of critical defence equipment, including ammunition, missiles, artillery, drones, air and missile defence systems, cybersecurity, AI technology, and electronic warfare capabilities. A key requirement is that at least 65% of components must be sourced from the EU, EEA-EFTA countries, or Ukraine, though Canada can participate through a bilateral agreement.
The programme is particularly beneficial for countries with weaker credit ratings, allowing them to borrow at more favourable rates than they could independently. Germany, whose credit rating aligns with the Commission’s, did not request any funding.
European Commission President Ursula von der Leyen has indicated that the strong demand for SAFE—already exceeding the initial €150 billion allocation—could lead to further expansion of the programme.
