EU approves 150bn euro SAFE programme to boost defence investment
EU member states have approved the creation of the Security Action for Europe (SAFE) programme, the Polish EU presidency announced on Tuesday. The initiative will make up to 150 billion euros in concessional loans available for joint defence investments across the bloc.
Through SAFE, the EU will borrow funds to help member states strengthen their defence capabilities. Eligible investments include ammunition, artillery, drones, missile systems, air defence, cybersecurity, military mobility and the protection of critical infrastructure.
A core goal of the programme is to enhance interoperability among European armies. To qualify for funding, defence procurement must generally involve at least two participating countries. However, in light of the urgent need for increased defence spending, single-country purchases will be temporarily eligible as well.
SAFE is also open to third countries with formal defence agreements with the EU, such as Ukraine and the United Kingdom. They may participate in joint tenders, and procurement from Ukraine’s defence industry will be permitted under the programme.
To ensure the plan supports European defence manufacturing, the cost of components from third countries – including the United States – must not exceed 35 per cent of the final product’s value.
The European Commission first proposed SAFE in late March as part of a broader strategy to strengthen the EU’s collective defence posture. Interested member states have six months to submit national plans, which will be evaluated by the Commission.
Pre-financing of up to 15 per cent of the total loan could already be made available before the end of the year.
The regulation was adopted with near-unanimous support. Only Hungary abstained.
© BELGA PHOTO POOL DIRK WAEM
Related news
