The European Commission has taken a significant step forward in bolstering the continent’s collective security by approving the first set of national defence investment plans under the Security Action for Europe (SAFE) initiative. Eight EU Member States—Belgium, Bulgaria, Denmark, Spain, Croatia, Cyprus, Portugal, and Romania—have received the green light for financial assistance aimed at enhancing their defence capabilities. This approval paves the way for approximately €38 billion in low-cost, long-term loans, pending final approval from the Council of the EU.
“Strengthening Europe’s defence readiness is not just a necessity but a strategic imperative,” said a senior EU official. “The SAFE initiative is a cornerstone of our broader Readiness 2030 strategy, designed to address long-standing capability gaps and reduce our reliance on fragmented national procurement.”
The SAFE initiative is part of the EU’s ambitious Readiness 2030 strategy, which seeks to mobilise up to €800 billion in total defence investment. A substantial portion of this, €150 billion, is specifically allocated for joint defence procurement. By pooling demand, Member States aim to achieve lower costs, faster delivery, and improved interoperability of military equipment, while also strengthening the European defence industrial base.
The Commission’s approval came after a rigorous assessment of each country’s National Defence Investment Plan, ensuring that proposed spending aligns with shared EU priorities and contributes to collective security. Funding allocations were provisionally agreed in September, based on principles of solidarity, transparency, and strategic need. Cyprus is set to receive approximately €1.18 billion, while Romania, reflecting its size and strategic role on the EU’s eastern flank, is provisionally allocated €16.68 billion. The remaining six countries will also receive support tailored to their specific defence investment plans.
Once loan agreements are signed, these funds will enable governments to invest rapidly in critical capabilities such as air defence, ammunition, mobility, cyber defence, and advanced military technologies.
Supporting Ukraine
The SAFE initiative also extends its reach to Ukraine, aiming to integrate the war-torn nation more closely into the EU’s security ecosystem. Ukraine, along with EFTA and EEA countries, will be able to participate in joint procurement initiatives, including the possibility of purchasing directly from their defence industries. Additionally, acceding countries, candidate countries, and potential candidates, as well as nations that have signed Security and Defence Partnerships with the EU, will be able to join common procurement efforts. These countries may also negotiate tailored agreements to support the involvement of their domestic defence industries, aligning industrial capacity with Europe’s security needs.
What Happens Next
Following the Commission’s assessment, the Council now has four weeks to adopt the necessary implementing decisions. Once approved, the Commission will proceed with finalising individual loan agreements with each Member State. The first disbursements are expected in March 2026, allowing funded projects to move quickly from planning to execution. Additional SAFE plans from other Member States are expected to be approved in the coming weeks, expanding the programme’s reach across the Union.
EU Defence Policy
Adopted in May 2025, the SAFE Regulation represents a major evolution in EU defence policy, shifting from coordination and guidance toward direct financial support. By combining joint procurement, long-term financing, and industrial cooperation, SAFE aims to deliver a more resilient, interoperable, and credible European defence posture in an increasingly unstable global security environment.
“This is a transformative moment for European defence,” said an EU spokesperson. “The SAFE initiative not only enhances our collective security but also sets a new standard for collaboration and innovation in defence procurement. It underscores our commitment to a secure and united Europe.”