Cyprus received its first payment of €177.2 million on Thursday under the Security Action for Europe (SAFE) defence financing instrument, the European Commission has announced. The amount disbursed represents 15% of Cyprus’s total allocation of €1.2 billion.
According to the Commission, this pre-financing payment will enable Cyprus to advance key defence investments, strengthen its resilience, and upgrade its military capabilities in line with common European objectives. The Commission emphasized that SAFE is designed to facilitate rapid and coordinated action, improve interoperability among European armed forces, and strengthen the European defence industry through joint procurement and closer cross-border cooperation.
The SAFE instrument, with a total budget of €150 billion, provides loans to EU member states to finance, primarily through joint procurement, ammunition, missiles, air defence systems, and land combat systems produced within the European Union. The instrument forms part of the European Commission’s ReArm Europe / Readiness 2030 plan, which aims to mobilize more than €800 billion in defence investments across the EU.
In a written statement, European Commissioner for Defence and Space Andrius Kubilius said that the pre-financing payment to Cyprus under SAFE “demonstrates Europe’s commitment to strengthening our common security and defence. This support will help Cyprus invest more rapidly in the capabilities it needs while contributing to our shared European objectives for a stronger, more resilient, and more interconnected defence industry. SAFE is about solidarity, readiness, and ensuring that Member States can collectively respond to Europe’s security needs.”
The Commission noted that the payment follows the completion of all required procedural steps and reflects the EU’s commitment to providing timely and meaningful support through SAFE. Further payments will be made as agreed milestones are achieved and the implementation of related projects progresses.
SAFE is financed through EU borrowing on financial markets and allows the Union to provide long-term loans to member states that apply for them, under competitive terms and an attractive financing structure. The loan conditions benefit from the European Union’s strong credit rating. All SAFE loans will be repaid by the Member States that receive them.
