The European Commission has approved the national defence plans of eight EU member States, among which that of Cyprus, paving the way for the release of low-interest, long-term loans under the SAFE (Security Action for Europe) initiative. Cyprus will receive €1.18 billion
The countries included in the first phase are Cyprus, Belgium, Bulgaria, Denmark, Spain, Croatia, Portugal and Romania. The green light was given on Thursday, 15 January during the meeting of the College of Commissioners in Limassol, and the first disbursements are expected to begin in March 2026.
The eight member states together will have access to around €38 billion once the loan agreements are signed. These funds will be used to strengthen military readiness and acquire modern defence equipment, with the aim of reinforcing strategic capabilities where they are most needed.
European Commission President, Ursula von der Leyen, said that “in 2025, the EU has made more progress in defence than in decades. The White Paper and the Readiness 2030 Roadmap have enabled Member States to mobilise up to €800 billion for defence, including €150 billion for joint procurement through SAFE. The first group of plans, which includes Cyprus, has been approved, and the remaining Member States will follow shortly.”
“There is no time to waste. We are moving ahead with European defence by financing defence readiness,” Defence Commissioner, Andrius Kubilius, stressed in a post. “The next steps include 11 plans from the remaining member states, Council decisions, loan agreements and the release of the first tranche, amounting to 15% of the financing,” he added.
Following the completion of the Commission’s assessment, the EU Council will have four weeks to approve the implementing decisions. After approval, the Commission will finalise the loan agreements, with the first payments expected to be made from March 2026.
The first phase of SAFE approval comes shortly after its presentation on 27 May 2025 as part of the ambitious Readiness 2030 package, which provides financial tools to member states to increase defence investment through joint procurement. According to the Commission, the aim of the package is to ensure interoperability, predictability and cost reduction, supporting a strong European defence industrial base.
(Source: CNA)
