SAFE: Council adopts €150 billion boost for joint procurement on European security and defence
The Council has adopted today a regulation setting up the Security Action for Europe (SAFE) instrument. SAFE 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.
SAFE will finance urgent and large-scale investments in the European defence technological and industrial base (EDTIB). The aim is to boost production capacity, making sure defence equipment is available when needed, and to address existing capability gaps - ultimately strengthening the EU’s overall defence readiness.
Furthermore, SAFE will allow the EU to further support Ukraine by associating its defence industry to the instrument from the start.
“We have adopted the first large-scale defence investment programme on the EU level worth €150 billion. This is not only a success of the presidency, but of the EU as a whole. This is unprecedented instrument which will boost our defence capabilities and support our defence industry. The more we invest in our security and defence, the better we deter those who wish us harm”.
Adam Szłapka - Polish Minister for the European Union
Functioning of SAFE
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.
To ensure economies of scale and interoperability, and reduce possible fragmentation of the EDTIB, beneficiary member states will have to carry out, in principle, common procurements involving at least two participating countries to qualify for the loans.
In response to current geopolitical situation and urgent need for massive investment in defence equipment, SAFE will also allow procurement involving only one member state for a limited period of time.
Involvement of third countries
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.
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.
Furthermore, SAFE offers the possibility to conclude an additional bilateral or multilateral agreement with those third states, under which the eligibility conditions could be opened.
Eligible action
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.
Defence products belonging to category 2 will be subject to stricter eligibility conditions, requiring for the contractors to have the ability to decide on the definition, adaptation and evolution of the design of the defence product procured.
For both categories of the products, procurement contracts will have to ensure that the cost of the components originating outside the EU, EEA-EFTA states and Ukraine is not higher than 35 % of the estimated cost of the components of the end-product
The EU is committed to further strengthening and deepening transatlantic cooperation and engagement on security and defence, as well as complementarity with NATO. Against this background, SAFE will strive to enhance interoperability, continue industrial cooperation, and ensure reciprocal access to state-of-the-art technologies with trusted partners.
Next steps
SAFE will enter into force on the day following that of its publication in the Official Journal of the European Union, i.e. on 29 May 2025.
Background
In its conclusions of 6 March 2025, the European Council stressed that Europe must become more sovereign, and more responsible for its own defence and better equipped to act and deal autonomously to cope with immediate and future challenges and threats. At that European Council, all member states committed to strengthening their overall defence readiness, reducing strategic dependencies, while addressing critical capability gaps and strengthening the EDTIB accordingly so that the EU is in a position to better supply equipment in the quantities and at the accelerated pace needed.
SAFE is the first pillar of the European Commission's ReArm Europe Plan/Readiness 2030, which proposes to leverage over €800 billion in defence spending. The other pillars are: boosting national defence funding by activating the Stability and Growth Pact's national escape clause; making EU instruments such as the cohesion funds more flexible to allow greater defence investment; complementing public funding with contributions from the European Investment Bank; and mobilising private capital.