The European Union (EU) on Tuesday approved a €150 billion ($170.7 billion) loan program to help member states rearm in response to the threat from Russia and growing doubts about U.S. military support.
Known as the Security Action for Europe (SAFE), the loan scheme, which is backed by the EU’s central budget, allows countries to borrow money for defense projects.
Ministers from 26 of the 27 EU member states voted in favor of the program at a meeting in Brussels. Hungary is the only country that abstained.
Agreement on #SAFE.
The more we invest in equipping our armies, the better we will deter those who wish us harm.
Security, Europe!#Poland25eu
— Polish presidency of the Council of the EU (@POLAND25EU) May 21, 2025
Poland, which holds the EU’s rotating presidency, announced the adoption of SAFE on X. “SAFE is the first major EU programme to increase investment in European defence capabilities which becomes a reality,” the statement said.
“The more we invest in our security, the better we deter those who wish us harm,” the post added.
France’s Europe Minister Benjamin Haddad described SAFE as “a major step forward” that establishes “a very clear principle of European preference to support our industries, reduce our dependencies including from the United States, and invest in Europe’s strategic autonomy.”
“But it is just one step – and we will need to go further,” Haddad added.
L’Europe de la défense avance !
Aujourd’hui nous adoptons le règlement SAFE à Bruxelles: 150 milliards de prêts pour soutenir l’industrie de defense européenne.
Pour défendre notre sécurité collective, nous devrons aller plus loin. pic.twitter.com/vy6QEKWCIG
— Benjamin Haddad (@benjaminhaddad) May 27, 2025
The SAFE program is part of the €800 billion ReArm Europe defense package, aimed at boosting EU military capabilities amid fears of Russian aggression and shifting U.S. commitments. Of the total, €650 billion will come from national budgets and €150 billion from SAFE loans.
To qualify for SAFE funding, at least 65% of a project’s value must come from companies in the EU, the European Economic Area, or Ukraine. Up to 35% can come from firms outside those regions, including countries with formal defense partnerships with the EU.
