To deliver on its objective of decisively ramping up Europe’s defence readiness within the next five years, the European Council reviewed progress in the implementation of its previous conclusions. Russia’s war of aggression against Ukraine and its repercussions for European and global security constitute an existential challenge for the European Union.
The conclusions from Council’s meeting of Thursday, 26 June stress the need to continue to substantially increase expenditure on Europe’s defence and security, and invest better together. It also notes the commitment made at the June 2025 NATO Summit by the Member States that are also NATO members.
SAFE will distribute up to €150 billion
Council welcomed the adoption of the Regulation establishing the Security Action For Europe (SAFE). This is a new EU financial instrument that will support those member states that wish to invest in defence industrial production through common procurement,focusing on priority capabilities.
Through SAFE the EU will provide up to €150 billion that will be disbursed to interested member states upon demand, and on the basis of national plans. The disbursements will take the form of competitively priced long-maturity loans, to be repaid by the beneficiary member states.
Adoption of the first large-scale defence investment programme on the EU level worth €150 billion is an unprecedented success (…) This instrument will boost our defence capabilities and support our defence industry – Adam Szłapka, Polish Minister for the EU
Beneficiary member states will have to carry out, in principle, common procurements involving at least two participating countries to qualify for the loans.
SAFE opens up a new chapter in the cooperation with third countries. Ukraine and EEA-EFTA countries will be treated on the same terms as member states. Not only they will be able to join common procurements, but also it will be possible to buy from their industries.
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SAFE will also allow acceding countries, candidate countries, potential candidates and countries that have signed a Security and Defence Partnerships with the EU, such as the United Kingdom, to join common procurements.
Ammunition, missiles, drones among top priorities
The eligible activities financed through SAFE will relate to the first list of priority areas identified by the European Council on 6 March 2025 and will be divided into two categories of defence products:
1) ammunition and missiles; artillery systems, including deep precision strike capabilities; ground combat capabilities and their support systems, including soldier equipment and infantry weapons; critical infrastructure protection; cyber; military mobility including counter-mobility;
2) air and missile defence systems; maritime surface and underwater capabilities; drones and anti-drone systems; strategic enablers, such as, but not limited to, strategic airlift, air-to-air refuelling and C4ISTAR systems as well as space assets and services; space assets protection; artificial intelligence and electronic warfare.
