The European Commission has approved national defence investment plans for eight EU Member States, initiating the process for these countries to access “low-cost, long-term loans” designed to boost military capabilities.
These loans are being made available under the Security Action for Europe (SAFE) initiative, which was adopted by the EU on 27 May 2025 as part of the broader Readiness 2030 framework.
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SAFE aims to increase defence investments among Member States through joint procurement and pooled demand and allows participation from Ukraine, EFTA/EEA countries, candidate countries, and partners.
Belgium, Bulgaria, Denmark, Spain, Croatia, Cyprus, Portugal, and Romania are included in this initial round of SAFE funding.
The Commission has formally proposed that the Council authorise financial support for these countries after reviewing their submitted plans.
Under preliminary allocations announced in September, Cyprus is set to receive €1.18bn and Romania €16.68bn, as part of a total package of approximately €38bn once loan agreements are completed.
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By GlobalDataThe funds aim to help recipients rapidly enhance defence preparedness and modernise equipment.
The Council will now consider the Commission’s proposal and is expected to make its implementing decisions within four weeks.
After those decisions, the Commission will finalise loan agreements, with disbursements currently scheduled to begin in March 2026.
European Commission President Ursula von der Leyen: “Last year, the EU has made more progress in defence than in decades before. The White Paper and the Readiness Roadmap 2030 enabled Member States to mobilise up to 800 billion euros for defence. This includes the 150 billion euros for joint procurement – SAFE.
“We have now approved an initial batch of SAFE plans for Belgium, Bulgaria, Denmark, Spain, Croatia, Cyprus, Portugal and Romania. The others will follow shortly after. It is now urgent for the Council to approve these plans to allow fast disbursement.”
SAFE initiative also enables non-EU countries with Security and Defence Partnership agreements to take part in joint procurement activities and negotiate terms for including their industries in relevant contracts.
In September last year, the European Council approved the commencement of negotiations with the UK and Canada concerning their involvement in the €150bn ($176bn) SAFE defence loan instrument.
However, the UK later aborted the plan as joining EU-wide procurement initiatives is not viewed as cost-effective.
