The European Union has approved a fresh round of national defence investment plans under its new SAFE programme, a key part of the bloc’s Readiness 2030 strategy aimed at significantly strengthening Europe’s military capabilities over the coming years.
Eight Countries Cleared for €74bn in Defence Loans
On Monday, the European Commission approved defence investment plans from Estonia, Greece, Italy, Latvia, Lithuania, Poland, Slovakia and Finland under the €150 billion Security Action for Europe (SAFE) loan scheme. Together, the eight countries requested €74 billion—almost half of the total funding the Commission plans to raise on financial markets. Poland accounted for the largest share, seeking €43.7 billion alone.
This marks the second wave of approvals. In January, another eight member states—including Belgium, Spain and Romania—had plans worth a combined €38 billion signed off by the Commission.
Defence Commissioner Andrius Kubilius said the latest approvals show the EU is now matching its security ambitions with real financial commitment. “We are no longer just drafting strategies; we are building a hard-power reality,” he said, adding that the move sends a clear message to both European industry and potential adversaries.
Boosting Europe’s Military Readiness
SAFE is a central pillar of the EU’s Readiness 2030 package, which aims to mobilise up to €800 billion for defence by the end of the decade. The programme is designed to speed up the procurement of priority military equipment, including ammunition, missiles, artillery systems, drones, air and missile defence, and tools to protect critical infrastructure, space assets and cyberspace.
A key requirement of the scheme is that most of the equipment must be European-made. No more than 35% of component costs can come from outside the EU, the EEA-EFTA countries or Ukraine. Canada, which has signed a bilateral agreement with the EU, will also be allowed to participate under the same conditions.
What Comes Next for SAFE
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 awaiting approval.
The scheme is particularly attractive for countries with lower credit ratings, as they can benefit from the European Commission’s stronger borrowing power and secure better loan terms. Germany, whose credit rating is already high, chose not to apply.
EU ministers now have four weeks to formally approve the latest plans, with the first payments expected in March 2026. European Commission President Ursula von der Leyen has previously suggested that SAFE could be expanded further, noting that demand has already exceeded the €150 billion initially available.
