The European Commission has approved the allocation of €1,181,503,924 from the €150 billion of SAFE for Cyprus.
SAFE is the EU’s new financial instrument designed to provide financial support to Member States to speed up defence readiness.
The Commission also approved the allocation of €787,669,283 for Greece. The decision was taken at Strasbourg where the College of Commissioners met on the afternoon of 9 September.
With this decision, the European Commission has approved the temporary allocation of financial assistance totalling €150 billion to strengthen defence preparedness across the EU. This important step, taken under the Security Action for Europe (SAFE) instrument, is expected, according to the Commission, to strengthen the EU's defence capabilities by providing significant amounts to EU member states to address critical gaps, as well as to jointly purchase defence products.
Following its approval by the European Council in May 2025, the SAFE programme has attracted strong interest, with 19 Member States expressing their intention to participate and requesting support beyond the available budget. According to what the Commission has made public, the SAFE programme will provide long-term, low-cost loans to help Member States procure the defence equipment they need in a short time.
SAFE will also allow the EU to further support Ukraine by linking its defence industry to the instrument from the outset. The programme includes a ten-year grace period for loan repayment, competitive interest rates and options for bilateral agreements with third countries to broaden eligibility.
Member states can now draw up their national investment plans, outlining the use of the potential financial assistance, which will be submitted by the end of November 2025. The Commission will then assess these national plans, with the aim of making the first disbursements in early 2026. The SAFE Regulation was adopted on 27 May 2025, as part of the "Readiness 2030” initiative, a defence package providing financial leverage to EU Member States. However, due to the urgency procedure, the European Parliament was sidelined and has taken the Commission to the European Court of Justice.
SAFE also allows acceding countries, candidate countries, potential candidate countries and countries that have signed security and defence partnerships with the EU to participate in joint procurement and contribute to the overall demand.
(Source: CNA)
