EU expands SAFE defense funding to eight more member states

The European Union has expanded its ambitious Security Action for Europe (SAFE) defense funding mechanism, approving a second wave of support for eight additional member states on Tuesday. EU ambassadors cleared the decisions covering Estonia, Greece, Italy, Latvia, Lithuania, Poland, Slovakia, and Finland, following positive assessments by the European Commission of their national defense investment plans, according to a Council statement.

Program Scope and Strategic Objectives

SAFE is a financial instrument designed to bolster Europe's defense industrial base through joint procurement and coordinated investment in priority capabilities. The program provides up to €150 billion ($180 billion) in loans to support member states in addressing critical capability gaps, boosting production capacity, and ensuring the timely availability of defense equipment. The mechanism enables participating countries, including Ukraine and European Economic Area members Norway, Liechtenstein, and Iceland, to engage in joint purchases from one another's defense industries.

Phased Implementation Across the Bloc

The second wave follows the initial approval on February 11 of plans for Belgium, Bulgaria, Denmark, Spain, Croatia, the Greek Cypriot Administration, Portugal, and Romania. The rapid expansion of SAFE funding reflects Brussels' urgency in strengthening European defense capabilities amid shifting geopolitical dynamics and ongoing conflict on the continent's eastern flank. The program prioritizes large-scale investments in the European defense technological and industrial base, aiming to reduce fragmentation and enhance interoperability among member states' armed forces.

Canada Becomes First Non-European Participant

In a significant development, the Council also authorized the EU to sign a bilateral agreement with Canada, making it the first non-European country permitted to participate in SAFE procurement. Canadian companies and products will now be eligible for joint procurement under the instrument, marking an expansion of transatlantic defense industrial cooperation. The move underscores the EU's willingness to engage strategic partners beyond Europe's borders while maintaining the program's core focus on strengthening collective security through coordinated industrial policy and shared capability development.