In a historic move aimed at strengthening Europe’s strategic autonomy and defence readiness, the Council of the European Union today adopted the Security Action for Europe (SAFE) instrument — a €150 billion financial programme designed to boost joint procurement and investment in the European defence industry.

The new initiative, which enters into force on 29 May 2025, marks the first large-scale coordinated EU effort to address urgent capability gaps, enhance production capacity and ensure rapid availability of critical defence equipment across member states.

“This is not only a success of the presidency, but of the EU as a whole,” said Adam Szłapka , Polish Minister for the European Union. “This unprecedented instrument will boost our defence capabilities and support our defence industry. The more we invest in our security and defence, the better we deter those who wish us harm.”

A New Era of Joint Investment

SAFE is structured around long-maturity loans that will be disbursed to interested EU member states based on national investment plans. The funds are intended to finance large-scale investments in the European Defence Technological and Industrial Base (EDTIB) , with a focus on priority areas identified by the European Council on 6 March 2025.

These include:

• Ammunition and missiles; artillery systems; ground combat capabilities
• Cybersecurity and military mobility
• Air and missile defence systems; maritime capabilities
• Drones and counter-drone systems
• Strategic enablers such as airlift, refuelling, surveillance and space assets

To promote efficiency and interoperability, SAFE encourages common procurement projects involving at least two participating countries. However, given current geopolitical pressures, single-member-state procurements will also be permitted for a limited time.

Opening Up to Partners

A notable feature of SAFE is its openness to third countries. Ukraine and EEA-EFTA nations will be treated on equal footing with EU members, able to participate in joint procurements and supply their domestic industries. Additionally, candidate countries, potential candidates and partners with Security and Defence Agreements — including the United Kingdom — may join procurement efforts.

The regulation also allows for bilateral or multilateral agreements with third states to tailor eligibility conditions where necessary.

Eligibility and Oversight

To qualify for funding, defence products must meet strict criteria. Category 2 systems — including advanced air defences, drones and strategic enablers — require contractors to maintain control over design decisions. Furthermore, non-EU/EEA/Ukraine components cannot exceed 35% of the total product cost.

The European Commission has emphasized that while SAFE promotes European sovereignty, it does not preclude transatlantic cooperation. On the contrary, the initiative aims to strengthen complementarity with NATO and ensure reciprocal access to cutting-edge technologies with trusted allies.

Part of a Larger Strategy

SAFE forms the first pillar of the European Commission’s broader ReArm Europe Plan / Readiness 2030 , which seeks to mobilize over €800 billion in total defence spending through multiple channels:

• Activating the Stability and Growth Pact’s national escape clause
• Making cohesion funds more flexible for defence use
• Engaging the European Investment Bank
• Leveraging private capital

The adoption of SAFE follows the European Council’s March 2025 conclusions calling for increased sovereignty, reduced strategic dependencies and faster response times in equipping European forces.

With geopolitical tensions at their highest in decades, the EU is now taking concrete steps to ensure it can act swiftly and collectively when security is at stake.

As the ink dries on this landmark regulation, all eyes will turn to implementation — and whether Europe can deliver on its promise to become a credible, unified actor in global security.

The Commission welcomes the agreement in the Council on the Security for Action for Europe (SAFE) instrument. The Commission will raise up to €150 billion on the capital markets, providing financial levers to EU countries to ramp up investments in key defence areas.

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