The European Union has taken another major step in strengthening its defence capabilities, approving new national investment plans under its €150 billion SAFE loan programme. The scheme is a central pillar of the EU’s Readiness 2030 strategy, which aims to channel hundreds of billions of euros into defence by the end of the decade, amid warnings from intelligence agencies that Russia could pose a direct threat to another European country within that timeframe.
Eight More Countries Get the Green Light
On Monday, the European Commission approved defence investment plans from Estonia, Greece, Italy, Latvia, Lithuania, Poland, Slovakia and Finland. Together, these countries requested €74 billion in funding—roughly half of the total amount the Commission plans to raise on financial markets for the Security Action for Europe (SAFE) programme.
Poland accounted for the largest share, seeking €43.7 billion on its own. This marks the second wave of approvals, following a first batch in January that cleared €38 billion in plans from Belgium, Bulgaria, Denmark, Spain, Croatia, Cyprus, Portugal and Romania.
Defence Commissioner Andrius Kubilius said the latest approvals show Europe is matching its security ambitions with real financial commitment. He added that the move sends a clear message to both European industry and potential adversaries that the EU is serious about strengthening its military capabilities and strategic autonomy.
What SAFE Is Designed to Fund
So far, 19 EU member states have applied to access SAFE funding, with provisional allocations agreed last September. Investment plans from Czechia, France and Hungary are still under review. Germany has chosen not to apply, as its strong credit rating allows it to borrow on favourable terms independently.
SAFE is designed to accelerate the joint procurement of key defence capabilities, including ammunition and missiles, artillery systems, drones and anti-drone technologies, air and missile defence, cybersecurity tools, AI-based systems, electronic warfare equipment, and protection for critical infrastructure and space assets.
A key requirement of the programme is that equipment must be largely European-made. No more than 35 percent of component costs can come from outside the EU, the EEA-EFTA countries or Ukraine. Canada, which has a bilateral agreement with the EU, is also eligible to participate under the same conditions.
Next Steps and Possible Expansion
EU defence ministers now have four weeks to formally approve the national plans. If all goes smoothly, the first payments under the scheme are expected to be made in March 2026.
European Commission President Ursula von der Leyen has previously suggested the programme could be expanded. The scheme was oversubscribed from the start, with participating countries initially requesting more than the €150 billion currently available, underlining the scale of demand as Europe prepares for a more uncertain security environment.
