Security Action for Europe (SAFE)

On 27 May 2025 Member States adopted a Regulation establishing a new financial instrument to help Member States accelerate the procurement of defence capabilities - the Security Action for Europe (SAFE). Under this instrument the Commission is mandated to issue up to €150 billion of additional funding until end-2030. The proceeds will be transferred to Member States as loans to finance the procurement of important defence capabilities.

Under the SAFE regulation Member States have until end November 2025 to submit their loan requests. The size of the loans and any pre-financing (which can be up to 15% of the loan) will be set out in relevant implementing decisions, on the basis of which disbursements under the new instrument will be made. The text of the SAFE regulation can be found here.

The extended time horizon of the new programme (to end 2030) and the demand driven nature of disbursements, mean that the Commission will be able to mobilise the funds smoothly and as needed with short-term and long-term funding across the yield curve. Thanks to the integration of the funding under the EU’s funding approach, disbursements will take the form of competitively priced long-maturity EU-bonds, to be repaid by the beneficiary member states. The extended deadlines for SAFE – with the bulk of the financing taking place after 2026 – also imply a continued supply of new debt until 2030 in addition to already substantial refinancing needs under the other programmes.

All issuances for financing of SAFE loans will take place under the single branded EU-Bonds.