EU launches €150 billion SAFE instrument to boost defence industry, joint procurement

On May 27, the Council of the European Union adopted a landmark regulation establishing the Security Action for Europe (SAFE) instrument, a new financial tool designed to support member states in strengthening defence industrial capabilities through joint procurement.

The initiative is seen as a crucial step towards greater European defence sovereignty and resilience amid rising geopolitical threats, Caliber.Az reports, citing the Council of the European Union.

SAFE, the first EU-wide defence investment programme of its scale, will provide up to €150 billion in competitively priced, long-maturity loans to participating member states. The funding will be allocated based on national plans and will focus on priority military capabilities identified by the European Council.

“This is not only a success of the presidency, but of the EU as a whole,” said Adam Szłapka, Poland’s Minister for the European Union. “This unprecedented instrument 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.”

The SAFE instrument aims to increase production capacity within the European Defence Technological and Industrial Base (EDTIB), address critical capability gaps, and ensure defence equipment is available when needed. While common procurement involving at least two member states will be the default requirement for accessing SAFE funds, single-country procurements will be temporarily permitted to respond to urgent security needs.

SAFE also opens the door for the participation of third countries under specific conditions. Ukraine and EEA-EFTA states will be treated on par with EU members, both in joining procurement efforts and as sources of defence production.

Acceding, candidate and potential candidate countries, as well as partners like the United Kingdom, with which the EU has signed a Security and Defence Partnership, will be eligible to join collaborative procurement initiatives. Additional bilateral or multilateral agreements may further expand eligibility.

By Aghakazim Guliyev