EU Nations Reach Consensus on €150 Billion SAFE Defence Fund to Strengthen European Security and Industry

Report by Safarti Tarjuman International Desk

European Union member states have reached an agreement in principle on the establishment of a €150 billion defence initiative named Security Action for Europe (SAFE), aimed at reinforcing the continent’s defence capabilities and supporting the European arms industry, an EU diplomat confirmed on Monday.

The SAFE programme, originally proposed by the European Commission in March, is set to be funded through joint borrowing mechanisms. It will offer loans to EU countries as well as select non-EU partners, including Ukraine, for projects designed to enhance national defence systems and foster growth in Europe’s defence manufacturing sector.

According to officials, the fund reflects a major step towards strategic autonomy in security and is part of the EU’s broader response to growing geopolitical instability, particularly in light of the ongoing war in Ukraine and evolving global threats.

“SAFE is a collective investment in Europe’s security, industrial capacity, and long-term strategic resilience,” the diplomat stated, underlining that further technical details and implementation mechanisms will be finalized in the coming weeks.

The initiative has garnered broad political backing across EU capitals, as governments increasingly recognize the need to scale up defence production and reduce reliance on external arms suppliers. The SAFE fund is expected to support cross-border defence projects, innovation in military technology, and joint procurement among member states.

Ukraine, currently engaged in defending its sovereignty against Russian aggression, is anticipated to be a significant beneficiary of the programme. EU officials noted that support for Ukraine through SAFE will help ensure that frontline defence efforts also serve to protect broader European stability.

The formal adoption of the SAFE plan will require final approval by the European Parliament and national parliaments, expected later this year.