EU has finally approved the SAFE defense investment program worth €150 billion: Ukraine can be involved
Kyiv • UNN
The EU Council has adopted the SAFE program worth €150 billion to stimulate joint procurement in the field of defense. The instrument will allow the bloc to support Ukraine by linking its defense industry with the program.
The Council of the European Union has approved the first large-scale defense investment program at the EU level, SAFE, worth EUR 150 billion, to stimulate joint procurement in the field of European security and defense, an instrument that will allow the bloc to continue to support Ukraine, the EU institution said on Tuesday, UNN writes.
Details
"Today, the Council (EU) adopted a decision to create the "Security Action for Europe" (SAFE) instrument," the statement said.
The SAFE program has been finally approved. EUR 150 billion for the development of the military-industrial complex. A giant success for Poland and the Polish Presidency
SAFE is reportedly a new EU financial instrument that will support member states wishing to invest in defense industrial production through joint procurement, with a focus on priority capabilities.
SAFE will finance urgent and large-scale investments in the European Defence Technological and Industrial Base (EDTIB). "The aim is to increase production capacity, ensure the availability of defence equipment when needed and address existing capability gaps - ultimately strengthening the EU's overall defence readiness," the statement said.
In addition, it is noted that "SAFE will allow the EU to continue to support Ukraine, linking its defence industry to the instrument from the outset".
"We have adopted the first large-scale EU-level defence investment programme worth EUR 150 billion. (...) This is an unprecedented instrument that will strengthen 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," said Adam Szłapka, Minister for EU Affairs of Poland, which holds the Presidency of the Council of the EU.
Functioning of SAFE
Through SAFE, the EU will provide up to EUR 150 billion, which will be paid to interested Member States on request and on the basis of plans developed at national level. Payments will be made in the form of long-term loans at competitive rates, which will be repaid by the beneficiary states.
In order to ensure economies of scale and interoperability, as well as to reduce possible fragmentation of the EDTIB, beneficiary states must, in principle, carry out joint procurement involving at least two participating countries in order to be eligible for loans.
In response to the current geopolitical situation and the urgent need for large investments in defence equipment, SAFE will also allow procurement involving only one Member State for a limited period of time.
Participation of third countries
SAFE opens a new chapter in cooperation with third countries. Ukraine and EEA-EFTA countries will be treated on the same terms as Member States. They will not only be able to participate in joint procurement, but also buy from their industries.
SAFE will also allow countries, candidate countries, potential candidates and countries that have signed a security and defence partnership agreement with the EU, such as the UK, to join joint procurement.
In addition, SAFE offers the possibility to conclude an additional bilateral or multilateral agreement with these third countries, according to which eligibility conditions may be opened.
Eligibility
Eligible activities financed through SAFE will relate to the first list of priority areas identified by the European Council on 6 March 2025 and will be divided into two categories of defence products:
1) ammunition and missiles; artillery systems, including deep precision strike capabilities; land combat capabilities and their support systems, including soldier equipment and infantry weapons; protection of critical infrastructure; cyber; military mobility, including counter-mobility;
2) air and missile defence systems; naval surface and underwater capabilities; drones and anti-drone systems; strategic enablers such as, inter alia, strategic airlift, air refuelling and C4ISTAR systems, as well as space assets and services; protection of space assets; artificial intelligence and electronic warfare.
Defence products falling under category 2 will be subject to stricter eligibility conditions, requiring contractors to be able to make decisions on the definition, adaptation and evolution of the design of the defence product being procured.
For both categories of products, procurement contracts must ensure that the value of components originating from outside the EU, EEA-EFTA countries and Ukraine does not exceed 35% of the estimated value of the components of the final product.
"The EU is committed to further strengthening and deepening transatlantic cooperation and engagement in the field of security and defence, as well as complementarity with NATO. Against this background, SAFE will seek to enhance interoperability, promote industrial cooperation and ensure mutual access to advanced technologies with reliable partners," the statement said.
Next steps
SAFE will enter into force on the day following its publication in the Official Journal of the European Union, i.e. 29 May 2025.