The European Council has officially adopted the Security Action for Europe (SAFE), a landmark €150 billion financial instrument designed to enhance joint procurement and production of defence equipment under the broader Readiness 2030 plan. SAFE marks the most significant step yet in strengthening the European defence technological and industrial base (EDTIB), with the aim of making Europe more autonomous, interoperable, and resilient in a rapidly shifting geopolitical landscape.
SAFE instrument: What it is and how it works
The newly approved SAFE instrument will provide up to €150 billion in competitively priced, long-maturity loans to participating states. To access the funds, countries must submit detailed national investment plans, similar to the model used for the EU’s post-pandemic Recovery Fund. Most projects must involve at least two governments to promote interoperability and prevent duplication or competition between different military systems. This approach is intended to ensure that armed forces across Europe can use compatible equipment and develop coordinated capabilities.
Exceptionally, in response to current geopolitical pressures, SAFE will allow single-state procurement for a limited time.
Expanding defence cooperation beyond the EU
SAFE is notable for its openness not only to EU members, but also to the EEA-EFTA countries (Norway, Iceland, and Liechtenstein), Ukraine, as well as candidate and partner countries with defence agreements with the EU—such as the United Kingdom and Turkey.
These States can both join joint procurement projects and supply equipment under SAFE, recognizing their strategic value to the continent’s security. However, at least 65% of the contract value must benefit companies within the EU itself, supporting European industry while fostering broader cooperation.
Eligible defence products and strategic priorities
Funds from SAFE will be channelled toward priority areas identified by the European Council in March 2025, including:
- Ammunition and missiles
- Artillery systems (including deep precision strike capabilities)
- Ground combat and support systems (including soldier equipment and infantry weapons)
- Critical infrastructure protection and cyber defence
- Military mobility and counter-mobility
- Air and missile defence systems
- Maritime surface and underwater capabilities
- Drones and anti-drone systems
- Strategic enablers (such as airlift, air-to-air refuelling, C4ISTAR systems, and space assets)
- Artificial intelligence and electronic warfare
Procurements must ensure that no more than 35% of the cost of components come from outside the EU, EEA-EFTA states, or Ukraine. For high-end systems, like those in air, maritime, or space domains, suppliers must demonstrate the ability to develop, adapt, and evolve their products independently.
Strengthening Europe’s defence autonomy and industry
According to Polish Minister for the European Union Adam Szłapka, “We have adopted the first large-scale defence investment programme on the EU level worth €150 billion. This is unprecedented… The more we invest in our security and defence, the better we deter those who wish us harm.”
SAFE forms the first pillar of the European Commission’s broader Readiness 2030 (originally “ReArm Europe”) plan, which aims to mobilize over €800 billion in defence spending through a mix of national investments, flexible EU funding instruments, European Investment Bank participation, and private capital mobilization.
Implications for transatlantic and regional security
The new mechanism will enter into force on 29 May 2025. It is intended to reduce Europe’s strategic dependencies, close capability gaps, and ensure timely access to equipment in times of crisis. SAFE’s design also reinforces the EU’s partnership with NATO and trusted transatlantic allies, focusing on industrial cooperation, interoperability, and reciprocal access to advanced technologies.
By providing an unprecedented boost to defence investment and creating incentives for collaboration between governments and industries, SAFE is set to reshape Europe’s security landscape in the coming years.
