EU expands multibillion-euro SAFE funding to eight more member states

LONDON

The EU Council on Tuesday approved a new round of funding under SAFE (Security Action for Europe), a multibillion-euro loan program aimed at boosting joint defense procurement and industrial production across the bloc, extending support to eight additional member states.

A second batch of decisions covering Estonia, Greece, Italy, Latvia, Lithuania, Poland, Slovakia and Finland was cleared by EU ambassadors and formally adopted by the Council on Feb. 17.

The decisions follow a positive assessment by the European Commission of the countries’ national defense investment plans, according to a statement from the Council.

On Feb. 11, the Council approved the plans of Belgium, Bulgaria, Denmark, Spain, Croatia, the Greek Cypriot Administration, Portugal and Romania in the initial wave.

SAFE is an EU financial instrument designed to support member states investing in defense industrial production through joint procurement, focusing on priority capabilities.

It will finance urgent and large-scale investments in the European defense technological and industrial base, with the aim of boosting production capacity, ensuring the timely availability of defense equipment and addressing capability gaps.

Under the mechanism, EU member states, Ukraine and the European Economic Area countries — Norway, Liechtenstein and Iceland — will be able to participate in joint procurements using up to 150 billion euros (about $180 billion) in loans. These countries will also be able to make joint purchases from one another’s industries.

The Council also adopted a decision authorizing the EU to sign a bilateral agreement with Canada allowing Canadian companies and products to participate in procurement under the SAFE instrument.

Canada will become the first non-European country to take part.