Eight Countries Receive SAFE Funding
The European Commission has given the green light to national defence investment plans from eight EU nations under its €150 billion Security Action for Europe (SAFE) loan programme. Estonia, Greece, Italy, Latvia, Lithuania, Poland, Slovakia, and Finland will share €74 billion in funding, with Poland requesting €43.7 billion alone.
SAFE is a key part of the EU’s Readiness 2030 plan, which aims to channel hundreds of billions of euros into defence by the end of the decade amid concerns that Russia could threaten another European country. This is the second round of approvals, following €38 billion granted in January to Belgium, Bulgaria, Denmark, Spain, Croatia, Cyprus, Portugal, and Romania.
From Strategy to Action
Defence Commissioner Andrius Kubilius described the latest approvals as a major step toward turning Europe’s defence ambitions into concrete capabilities. “We are no longer just drafting strategies; we are building a hard-power reality,” he said, adding that the programme signals to both European defence industries and potential adversaries that the bloc is serious about military strength and sovereignty.
A total of 19 member states have applied for SAFE funding, with Czechia, France, and Hungary still awaiting approval. EU ministers now have four weeks to formally sign off on all plans, with the first disbursements expected in March 2026.
Boosting European Defence and Industry
SAFE funding is intended to accelerate the purchase of priority defence equipment, including missiles, artillery, drones, air and missile defence systems, cybersecurity tools, AI technologies, and electronic warfare systems. A key rule is that at least 65% of the equipment must be produced in Europe, with no more than 35% of components coming from outside the EU, EEA-EFTA countries, or Ukraine. Canada can also participate under a bilateral agreement with the EU.
The programme is particularly beneficial for countries with weaker credit ratings, offering lower borrowing costs than they could secure individually. Germany, with a strong credit rating, chose not to apply. European Commission President Ursula von der Leyen has suggested the scheme could expand further, noting that demand has already exceeded the initial €150 billion allocation.
