The European Commission has approved the first set of national defense investment plans under the Security Action for Europe, or SAFE, clearing the way for initial loan disbursements aimed at accelerating military readiness across the bloc.
The commission said Thursday that it has submitted a proposal to the European Council to authorize financial assistance for Belgium, Bulgaria, Denmark, Spain, Croatia, Cyprus, Portugal and Romania.
The council has four weeks to approve the proposal. Following approval, the European Commission will finalize loan terms with participants. The first wave of funding is slated for distribution in March.
SAFE, the European Union’s $174.25 billion joint procurement and defense financing instrument, was adopted in May 2025 as the first pillar of the European Union’s ReArm Europe Plan.
How Much SAFE Funding Could Be Released?
If approved by the council, the eight countries would gain access to roughly $44.15 billion in competitively priced, long-maturity loans. Individual allocations were provisionally set in 2025, with Cyprus eligible for approximately $1.37 billion and Romania for up to $19.38 billion, based on principles of solidarity and transparency.
European Commission President Ursula von der Leyen said the approvals align with the Readiness 2030 framework, which is designed to mobilize up to $929.67 billion in defense-related investment across the EU.
What Capabilities Can SAFE Financing Support?
SAFE loans are intended to support large-scale defense capability investments through joint procurement, with a focus on priority areas identified by the European Council.
Eligible capabilities include ammunition and missiles, artillery systems, ground combat platforms, cyber defense, military mobility, drones and counter-drone systems, space assets, artificial intelligence and electronic warfare.
How Does SAFE Expand Cooperation Beyond the EU?
The program extends participation beyond EU member states. Ukraine and the European Economic Area and European Free Trade Association countries are eligible to join procurements on the same terms as EU members. Acceding and candidate countries may also participate.
The council has authorized negotiations with the United Kingdom and Canada, with Canada already endorsed to be the first non-European country approved to take part in SAFE-funded procurements.