EU ambassadors agree on €150-billion SAFE plan to boost Europe's military capabilities

EU member states' ambassadors have agreed on the European Commission's proposed plan to enhance Europe's military capability, known as Security Action for Europe (SAFE), with a budget of €150 billion.

The Polish Presidency of the Council of the EU shared the news on its page on X (formerly Twitter) on May 21, per Caliber.Az. 

"Agreement on SAFE. The more we invest in equipping our armies, the better we deter those who wish us harm," the text notes.

Agreement on #SAFE.

The more we invest in equipping our armies, the better we will deter those who wish us harm.

Security, Europe!#Poland25eu

— Polish presidency of the Council of the EU (@POLAND25EU) May 21, 2025

Meanwhile, Reuters reports that the agreement was also confirmed by the Polish Minister of Defence, Władysław Kosiniak-Kamysz.

"Today, the ambassadors and permanent representatives of the EU member states unanimously decided to activate the SAFE regulation," Kosiniak-Kamysz said at a press conference in Warsaw.

According to the minister, Poland managed to push through favourable conditions for itself regarding the allocation of loans under this plan. For example, 35% of the funds can be spent on purchasing components produced outside Europe.

Additionally, financing can be used for already implemented defence projects.

Participating countries will also be able to submit loan applications individually, rather than only as groups, during the first 12 months.

Now, the plan must be approved by the foreign ministers of the EU countries and then by the European Parliament. It envisages the creation of a common fund of €150 billion from the EU's budget money and funds attracted by the European Commission through a pan-European loan.

The European Commission will manage these funds, directing them toward "acquiring military capabilities that the European Union needs most urgently."

Thus, the European Commission will sharply expand its powers.

For the first time in history, it will simultaneously gain the ability to independently allocate military contracts and, as they are fulfilled, gain control over military equipment, drones, and logistics assets.

The European Commission this week proposed rules for a new 150 billion euro ($162.4 billion) rearmament fund - part of a major drive to get the European Union ready to defend itself by 2030 amid fears of a Russian attack and doubts about U.S. protection. 

The Security Action for Europe (SAFE) fund will be financed through joint borrowing and give loans to EU members and certain other countries such as Ukraine for projects that bolster their defences and boost Europe's arms industry.

By Khagan Isayev