What is Security Action for Europe (SAFE)?
SAFE is an EU instrument providing loans of up to €150 billion to help EU member states make rapid and significant increases in their defence investments through common procurement.
A financial instrument to boost defence investments
Through the Security Action for Europe (SAFE) instrument, the EU is providing financial assistance in the form of loans worth up to €150 billion. The assistance aims to help EU member states make rapid and significant increases in their defence investments through common procurement.
The regulation setting up the SAFE instrument entered into force on 29 May 2025.
SAFE is funded by the European Union through its borrowing capacity, specifically by issuing EU-bonds under the existing unified funding approach. It is the first pillar of the ReArm Europe plan/Readiness 2030 presented by the European Commission in March 2025.
The instrument finances urgent and large-scale investments in the European defence technological and industrial base.
Allocation of the budget is demand-driven. Disbursements take the form of competitively priced long-maturity loans, to be repaid by the beneficiary EU member states.
In principle, common procurement procedures have to involve at least two participating countries to qualify for the loans. However, SAFE allows procurement involving only one member state for a limited period of time.
Areas financed by SAFE
SAFE supports the procurement of defence products grouped in two categories.
Category 1:
- ammunition and missiles
- artillery systems, including deep precision strike capabilities
- ground combat capabilities and their support systems, including soldier equipment and infantry weapons
- small drones and related anti-drone systems
- critical infrastructure protection
- cyber capabilities
- military mobility including counter-mobility
Category 2:
- air and missile defence systems
- maritime surface and underwater capabilities
- drones other than small drones and related anti-drone systems
- strategic enablers such as, but not limited to, strategic airlift, air-to-air refuelling, C4ISTAR systems as well as space assets and services
- space assets protection
- artificial intelligence and electronic warfare
Across all categories, procurement contracts must ensure that no more than 35% of component costs originate from outside the EU, Ukraine or countries that are part of the European Economic Area (EEA) and the European Free Trade Area (EFTA): Iceland, Liechtenstein, Norway and Switzerland.
Projects that concern category 2 must meet stricter eligibility conditions, including the possession by contractors of the capacity to modify the equipment in case of need without non-EU restrictions.
Cooperation with Ukraine and other partner countries
SAFE opens up a new chapter in cooperating with non-EU countries on defence.
While only member states can obtain SAFE loans, Ukraine and the EEA/EFTA countries can participate with EU member states on equal terms in common procurements.
Procurements from the Canadian industry are also possible, following the conclusion of a bilateral agreement with the EU in June 2026.
The following countries may also participate in common procurement:
- EU acceding, candidate, and potential candidate countries
- countries that have signed Security and Defence Partnerships with the EU, such as Albania, Canada, India, Japan, Moldova, North Macedonia, Norway, South Korea and the United Kingdom
Other non-EU countries may join common procurements, subject to prior conclusion of a security and defence partnership with the EU.
EU member states' allocations
Between 11 February and 10 April 2026, the Council green-lit defence funding under SAFE for 18 EU member states.
List of EU countries benefitting from SAFE loans and the maximum loans amounts they can receive.
This decision follows the European Commission's positive assessment of the 18 member states' national defence investment plans.
The Commission can now conclude loan agreements with the member states concerned and proceed with the disbursement of the pre-financing payments.
Of the 19 national plans submitted to the European Commission, 15 include projects with Ukraine.
See also
Common defence procurement
European defence readiness
Security and defence partnerships
Last review: 15 June 2026