Eight Countries Cleared for New SAFE Funding
The European Commission has approved defence investment plans from eight EU countries under a new €150 billion loan scheme designed to strengthen Europe’s military capabilities. Estonia, Greece, Italy, Latvia, Lithuania, Poland, Slovakia and Finland will together access €74 billion through the Security Action for Europe (SAFE) programme, with Poland alone requesting €43.7 billion.
SAFE is a key element of the EU’s Readiness 2030 strategy, which aims to channel up to €800 billion into defence by the end of the decade. The effort comes as European security agencies warn that Russia could pose a direct threat to another European country in the coming years. This approval marks the second round of funding, following a January decision that granted €38 billion to eight other member states.
From Planning to Military Capability
EU Defence Commissioner Andrius Kubilius said the latest approvals show that Europe is matching its security ambitions with serious financial backing. He described the programme as a clear signal that the EU is no longer just developing defence strategies, but actively building military strength.
In total, 19 member states have applied for SAFE funding so far, with allocations provisionally agreed last September. Investment plans from Czechia, France and Hungary are still awaiting approval. EU ministers now have four weeks to formally sign off on the plans, with the first payments expected in March 2026.
Investing in European-Made Defence
SAFE is designed to accelerate the joint purchase of priority defence equipment, including ammunition, missiles, artillery, drones, air and missile defence systems, cybersecurity tools, artificial intelligence and electronic warfare capabilities. A key condition of the scheme is that most of the equipment must be made in Europe, with no more than 35% of components sourced from outside the EU, EEA-EFTA countries or Ukraine. Canada will also be allowed to participate under a bilateral agreement with the bloc.
The loan structure is especially attractive for countries with lower credit ratings, as borrowing through the Commission offers better rates than national markets. Germany, whose credit standing matches the Commission’s, chose not to apply.
European Commission President Ursula von der Leyen has previously suggested the scheme could be expanded, noting that demand has already exceeded the €150 billion initially available.
