The European Commission has announced a provisional allocation of €150 billion to bolster defence readiness across the Union. Delivered through the Security Action for Europe (SAFE) programme, the initiative seeks to enhance the EU’s defence capabilities, address urgent shortfalls, and promote joint procurement of key defence equipment.

Following its adoption by the Council in May 2025, the SAFE programme has already drawn strong interest, with 19 Member States indicating their intention to participate and requesting support beyond the available budget.

SAFE will provide long-term, low-cost loans to help Member States procure urgently needed defence equipment. It will also enable the EU to further support Ukraine by involving its defence industry from the outset. Key features of the programme include a 10-year grace period for loan repayment, competitive interest rates, and the possibility of bilateral agreements with third countries to expand eligibility.

Member States can now prepare their national investment plans, outlining how they intend to use the financial assistance. These plans must be submitted by the end of November 2025. The Commission will then assess them, with the first disbursements expected in early 2026.

Background

The SAFE Regulation was adopted on 27 May 2025 as part of Readiness 2030, an ambitious defence package designed to provide financial instruments that drive an investment surge in defence capabilities.

SAFE will allow Member States to rapidly and substantially increase their defence investments through joint procurement from the European defence industry, with a focus on priority capabilities. This will enhance interoperability, predictability, and cost efficiency while strengthening the European defence industrial base.

Ukraine and EFTA/EEA countries will be able to join joint procurement, and it will be possible to source from their industries. SAFE will also allow acceding countries, candidate countries, potential candidates and countries having signed Security and Defence Partnerships with the EU to join common procurement and contribute to aggregated demand. They may additionally negotiate mutually beneficial agreements to involve their respective industries.

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