The European Commission announced that 18 EU member states, including Italy, Poland, Spain, and France, have expressed interest in accessing €127 billion in loans to fund defense procurements through the bloc’s SAFE initiative.
The Security Action for Europe (SAFE) mechanism, introduced in March, aims to strengthen the EU’s defense posture by offering up to €150 billion in long-term, low-interest loans to countries investing in their military capabilities.
“We are pleased to see the strong interest from member states in SAFE loans. This is a major step toward meeting Europe’s defense objectives swiftly and decisively,” said EU Commissioner for Defence and Space Andrius Kubilius via social media.
The Commission stated that this early expression of interest will help assess funding needs and support preparations for capital market financing. Member states must formally submit their applications and national defense investment plans by the end of November.
SAFE is primarily designed to fund urgent, large-scale procurement projects. These initiatives will be based on joint purchasing arrangements involving at least one SAFE beneficiary country and either another EU member state, Ukraine, or EEA-EFTA countries such as Iceland, Liechtenstein, and Norway.
However, given current global tensions, the Commission noted that SAFE will also temporarily support procurements carried out by individual EU countries to ensure timely delivery of essential military assets.
SAFE loans will only be available to EU members. Nonetheless, countries with existing defense and security partnerships with the EU — including the United Kingdom, Norway, Canada, South Korea, and Japan — can participate in joint procurement projects.
Loan eligibility criteria stipulate that no more than 35% of a system’s components can originate from outside the EU, Ukraine, or EEA-EFTA countries. For high-priority systems like air and missile defense platforms or maritime capabilities, stricter rules apply. Contractors must ensure full EU-level operational control, including the ability to modify equipment without external (non-EU) restrictions.
