The European Commission welcomes todays agreement in the Council of the EU on the Security for Action for Europe (SAFE) Instrument. As outlined in the ReArm Europe Plan / Readiness 2030, the Commission will raise up to €150 billion on the capital markets to support EU Member States in investing in key defence areas such as air missile defence, drones, and strategic enablers.

Ursula von der Leyen, President of the European Commission, stated: “Exceptional times require exceptional measures. I welcome todays agreement on SAFE as a crucial step forward. Europe must assume greater responsibility for its security and defence. With SAFE, we invest in cutting-edge capabilities for our Union, Ukraine, and the entire continent, strengthening the European defence technological and industrial base. This is about readiness, resilience, and creating a truly European defence market. Europe is stepping up — with purpose, unity, and a clear roadmap towards Readiness 2030.”

The funds will be raised on capital markets and allocated to interested Member States based on their European defence industry investment plans. SAFE encourages Member States to procure capabilities cooperatively.

An ambitious defence instrument, SAFE will enhance European defence capabilities and strengthen the competitiveness and interoperability of a strong European defence industrial base.

Next Steps

Member States have six months from the regulations entry into force to submit their initial national plans, which the Commission will then evaluate. Following a Commission proposal, the Council is expected to adopt implementing decisions, including the loans size and any pre-financing. Pre-financing, up to 15% of the loan, ensures swift support for urgent needs, potentially starting in 2025. Member States must report on implementation progress when submitting payment requests, which can be done twice a year. Final approval for disbursements can occur until 31 December 2030.

Background

In March 2025, the Commission proposed the White Paper for European Defence – Readiness 2030 and its ReArm Europe Plan / Readiness 2030 as an ambitious defence package providing financial levers to EU Member States to drive investment in defence capabilities. The activation of the national escape clause of the Stability and Growth Pact for defence purposes, alongside the Security Action for Europe (SAFE) loan, forms the backbone of the ReArm Europe Plan / Readiness 2030, enabling Member States to significantly and rapidly scale up their investments in European defence.

This is an ambitious defence package providing financial levers to EU Member States to drive a surge in investment in defence capabilities. Under the SAFE loan, the Commission will raise up to €150 billion on the capital markets, drawing on its well-established unified funding approach. While under the national escape clause, Member States benefit from additional space for defence spending, the EU fiscal rules continue to apply in full. Any deviations from the endorsed net expenditure paths, other than those specified, will be monitored according to the Regulation (EU) 2024/1263 throughout the activation period.

The cost of components originating outside the Union, EEA EFTA States, and Ukraine should not exceed 35% of the estimated cost of the components of the end-product, reinforcing the spend European principle, according to the agreement. SAFE also outlines clear eligibility conditions for contractors and subcontractors to ensure that investments serve the Unions security and defence interests and bolster the European Defence Technological and Industrial Base (EDTIB).