The EU Council reported on Tuesday that it has adopted legislation setting up the Security Action for Europe (SAFE) instrument worth €150 billion ($170.4 billion), which aims to support member states investments in joint defense procurement and also to strengthen Ukraine’s defense industry.
“We have adopted the first large-scale defense investment program at the EU level worth €150 billion. This is not only a success of the presidency, but of the EU as a whole,” Adam Szłapka – Polish Minister for the EU said. “The more we invest in our security and defense, the better we deter those who wish us harm.”
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The goal of the fund is to increase defense production capacity, close existing capability gaps and ensure readiness for а possible threat against the EU. SAFE enters into force on Thursday, 29 May 2025, the day after it is due to appear in the EU’s Official Journal.
SAFE will provide long-term loans to a total of up to €150 billion. Member states can submit bids for funds based on individual national plans which must, in principle, involve joint procurement with at least one other participating country.
However, in response to the current geopolitical situation and urgent need for massive investment in defense equipment, SAFE will also allow single member states to make purchases on their own for a limited time where necressary, the press release says.
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SAFE will also allow the EU to further support Ukraine by enabling its defense industry to be associated with the instrument from the start.
SAFE will fund projects in two main categories. The first includes ammunition, artillery, ground combat systems, cyber, and mobility. The second covers air and missile defense, naval systems, drones, AI, and space assets.
Stricter rules apply to the second group, requiring design control by EU or associated contractors, the press release says.
Procurement must ensure that no more than 35% of component costs come from outside the EU, EEA-EFTA, or Ukraine. According to the EU Council, this will support the European defense industry and reduce reliance on non-EU suppliers.
SAFE is part of the EU’s broader ReArm Europe Plan and the Readiness 2030 strategy. The plan aims to mobilize more than €800 billion ($907.1 billion) in defense investment through national spending, EU instruments, European Investment Bank (EIB) support, and private capital.
US President Donald Trump and NATO Chief Mark Rutte have both called for NATO members to increase their defense spending to 5% of GDP.
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