Eight Countries Get Green Light Under €150bn Scheme
The European Commission has approved defence investment plans from eight EU countries under a major new loan programme designed to strengthen Europe’s military readiness. Estonia, Greece, Italy, Latvia, Lithuania, Poland, Slovakia and Finland will have access to €74 billion in funding through the Security Action for Europe (SAFE) initiative, with Poland alone accounting for €43.7 billion of the total.
SAFE is a central pillar of the EU’s Readiness 2030 strategy, which aims to channel hundreds of billions of euros into defence before the end of the decade. The push reflects growing concern across Europe, as intelligence agencies warn Russia could pose a direct threat to another European country within the coming years.
This marks the second wave of approvals. In January, eight other countries — Belgium, Bulgaria, Denmark, Spain, Croatia, Cyprus, Portugal and Romania — secured approval for defence plans worth a combined €38 billion.
Turning Strategy Into Military Capability
EU Defence Commissioner Andrius Kubilius said the latest approvals show Europe is moving from planning to action. He described the SAFE investments as a sign that the bloc is backing its security ambitions with real financial power, sending a clear message to both European defence industries and potential adversaries.
So far, 19 EU member states have applied to use SAFE funding, with allocations provisionally agreed last September. Investment plans from Czechia, France and Hungary are still under review.
The programme is designed to speed up the purchase of priority military equipment, including ammunition, missiles, artillery systems, drones, air and missile defence, cybersecurity tools, artificial intelligence and electronic warfare systems, as well as protection for critical infrastructure and space assets.
Supporting European Industry and Lower-Cost Borrowing
A key condition of SAFE is that most of the equipment must be produced in Europe. At least 65% of component costs must come from the EU, EEA-EFTA countries or Ukraine. Canada, which has a bilateral agreement with the bloc, will also be allowed to participate under the same terms.
The scheme is especially attractive for countries with weaker credit ratings, as borrowing through the European Commission allows them to secure better interest rates. Germany, whose credit rating matches the Commission’s, chose not to apply for SAFE funding.
EU ministers now have four weeks to formally approve the plans, with the first payments expected in March 2026. European Commission President Ursula von der Leyen has previously suggested the programme could be expanded further, noting that demand already exceeds the €150 billion initially available.
