The Council of the European Union has approved a package of implementing decisions making financial assistance under the SAFE instrument available to eight EU Member States, Cyprus, Belgium, Bulgaria, Denmark, Spain, Croatia, Portugal and Romania.
The approval of the package enables Cyprus to strengthen its defence production with loans totalling €1,181,503,924.00, with an initial disbursement of €177,225,588.60.
A second package of Council implementing decisions on financial assistance for Estonia, Greece, Italy, Latvia, Lithuania, Poland, Slovakia and Finland has been approved by EU ambassadors and is expected to be formally adopted by the Council on 17 February. Under this second package, Greece has applied for €787,669,283.00 through SAFE, with the first payment amounting to €118,150,392.45.
“Today’s decisions show that the EU is not only talking about defence – we are delivering results. Through SAFE, we are strengthening our security where it matters most,” said Minister of Defence Vasilis Palmas, commenting on the approval of the first package under the Cyprus Presidency.
Today’s decision follows the European Commission’s positive assessment of the Member States’ National Defence Investment Plans. It paves the way for the issuance of the first wave of affordable, long-term loans by the Commission, enabling participating countries to acquire modern defence equipment and strengthen their defence readiness.
In addition, the Council today approved a decision authorising the EU to sign the bilateral agreement between the EU and Canada on the participation of Canadian companies and Canadian-origin products in public procurement under the SAFE instrument. Canada will be the first non-European country to participate in the SAFE instrument. Following negotiations between the two parties, the agreement was provisionally approved by representatives of the Member States in the relevant committee on 19 December 2025.
After the signing, the agreement may be applied provisionally. It will be formally concluded only after the European Parliament has given its consent. The text of the agreement will be published shortly in the Official Journal of the European Union. Following the adoption of the implementing decisions, the Commission will conclude loan agreements with the interested Member States and proceed with the disbursement of pre-financing payments.
(Source: CNA)
