The European Commission has approved the provisional allocation of €150 billion ($175.7 billion) in low interest loans through the new Security Action for Europe (SAFE) program, aimed at strengthening the European Union’s defense capabilities. Through this program, Greece has been approved for €787.67 million ($922.34 million), while Cyprus for €1.18 billion ($1.38 billion).
SAFE, adopted on 27 May 2025 under the EU’s ReArm Europe Plan/Readiness 2030, is designed to address critical gaps in defense readiness, enable joint procurement of military equipment, and build a stronger European defense industry.
Since its launch, interest has far exceeded available funds, with 19 member states applying for support. Poland tops the allocation list with over €43.7 billion ($51.17 billion), reflecting its strategic position on NATO’s eastern flank at a critical time for EU defense.
The loans provided through SAFE will come with favorable conditions, including a ten-year grace period, competitive interest rates, and the possibility of bilateral agreements with third countries, such as EU candidates and EEA-EFTA members as well as Ukraine. SAFE will also temporarily support procurements by individual member states in order to ensure timely delivery of critical assets.
For Greece, the allocation is lower than the €1.2 billion originally requested. Nevertheless, the approved funds are expected to support the modernization critical weapons systems, procurement of new equipment, and reinforcement of Greece’s national defense industry.
Member states must now submit national investment plans by 30 November, detailing how they will use the EU’s allocated funds. The European Commission will evaluate the initial batch of proposals, with the first disbursements expected by February of 2026.
Political debate has already surfaced around SAFE. Greek Prime Minister Kyriakos Mitsotakis has stated that Greece will block Turkey’s participation in the program as long as the unacceptable threat of casus belli against Greece remains on the table. This is because the SAFE program explicitly excludes countries that threaten the EU and the interests of its member states.
The European Parliament has also launched a legal challenge against the Commission and the Council, appealing to the European Court of Justice at the end of August. The Parliament argues procedural rules were not followed during the adoption process of the defense program due to the urgency of the measure, and seeks the annulment of the regulation. The judges of the Court of Justice of the EU (CJEU) will now be called upon to rule on the issue.
Nevertheless, EU MP’s point out that “The SAFE regulation enjoys the full support of the Parliament, as it is significant for Europe and Ukraine.”
Should their appeal be upheld by the CJEU, EU MPs assure that “SAFE should remain in force until a new replacement legislative act is passed.”
