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EU Launches €150B SAFE Initiative to Strengthen Defense Industry

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Dariia Mykhailenko
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EU Launches €150B SAFE Initiative to Strengthen Defense Industry
Flags from the 27 countries of the EU flies in the wind in front of the European Parliament in Brussels, Belgium on April 5, 2025. (Source: Getty Images)

The Council of the European Union has approved the creation of a new financial instrument, the Security and Defense Initiative for Europe (SAFE), designed to enhance the EU’s defense industrial base and maintain long-term support for Ukraine. The regulation was adopted on May 27.

SAFE will enable the EU to raise up to €150 billion (approximately $170 billion) in long-term loans for strategic defense investments across member states. The initiative will focus on expanding production capacity, addressing capability gaps, and ensuring the availability of critical defense systems.

“We have adopted the first large-scale defense investment programme on the EU level worth €150 billion. This is not only a success of the presidency, but of the EU as a whole. This is unprecedented instrument which will boost our defense capabilities and support our defense industry,” Polish Minister for the European Union Adam Szłapka stated.

According to the Council, SAFE will also allow for Ukraine’s defense industry to participate in the program from the outset, reinforcing the EU’s commitment to Ukraine’s long-term security.

Funding will be allocated based on national plans submitted by participating member states. Disbursements will be issued as long-term loans on competitive terms, with repayments required from beneficiary countries.

The initiative outlines two categories of eligible defense products: the first includes conventional capabilities such as ammunition, missiles, artillery systems, ground combat platforms, soldier equipment, small arms, critical infrastructure protection, cybersecurity, and military mobility; the second focuses on advanced systems, including air and missile defense, naval assets, drones and counter-drone technologies, strategic capabilities such as airlift and refueling, C4ISTAR systems, space assets, artificial intelligence, and electronic warfare.

Category 2 projects will be subject to stricter conditions. Contractors must demonstrate the ability to independently develop and adapt the defense technologies being procured.

Earlier, the European Union adopted its 17th package of sanctions against Russia, intensifying pressure over the ongoing invasion of Ukraine.

The new measures, announced by European Commission President Ursula von der Leyen and EU foreign policy chief Kaja Kallas, target nearly 200 vessels linked to Russia’s shadow fleet and address hybrid threats and human rights violations.

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