On 21 May 2025, EU ambassadors agreed to launch a defence financial instrument, Security Action for Europe (SAFE). The EU Council is expected to formally adopt this decision on 27 May.
In the spring of 2025, the European Commission presented SAFE alongside the White Paper for European Defence and the ReArm Europe Plan/Readiness 2030, which requires funding of over €800 billion. The main sources of funding will be:
- increased defence spending at the national level;
- the Security Action for Europe (SAFE) instrument;
- loans from the European Investment Bank for defence and security projects, and private investment.
The EU budget will allocate €150 billion to SAFE. These funds will be lent to EU member states for priority areas:
- air and missile defence;
- artillery systems;
- ammunition and missiles;
- drones and counter drones systems;
- strategic assets and critical infrastructure protection;
- military mobility;
- AI, Quantum, Cyber and Electronic warfare.
'SAFE will allow Member States to immediately and massively scale up their defence investments through common procurement from the European defence industry, focusing on priority capabilities. This will contribute to ensuring interoperability, predictability, and reducing costs for a strong European defence industrial base,' the European Commission said in a statement.
While Ukraine will not receive loans under SAFE, it will be able to participate in joint procurement with EU member states. Preference will be given to the purchase of European and Ukrainian goods.
According to Ukraine's Defence Minister Rustem Umerov, SAFE recognises the Ukrainian defence industry as part of the future European security system. 'We have already proven our ability to produce solutions that change the rules on the battlefield. And we are ready to share this experience to make Europe stronger together. Together with our European allies, we will work on large-scale projects within the SAFE framework, including in the area of joint procurement,' he said.
For her part, NAKO Executive Director Olena Tregub noted that SAFE loans will not be launched for at least six months and will only be available to member states. 'As for Ukraine, its participation is still under discussion. Ideally, member states would be able to use these loans for joint projects with Ukraine. However, they will most likely use the funding for their own purposes,' she said.