The European Union has given its final approval to a €150 billion loan scheme designed to strengthen the bloc’s military capabilities amid ongoing concerns about Russia and the reliability of the United States as a security partner.
The initiative, known as the SAFE borrowing programme, was first proposed by the European Commission in March and formally adopted by EU ministers in Brussels on Tuesday. According to the Polish presidency of the EU Council, 26 member states voted in favour of the plan, with only one country abstaining.
The scheme will be backed by the EU’s central budget and aims to rapidly expand European defence spending. However, talks among member states had dragged on over how the funds should be allocated and whether non-EU suppliers could be included.
Ultimately, the final agreement allows up to 35 percent of the total value of any weapons procured through the scheme to come from manufacturers outside the EU and Ukraine.
French Europe Minister Benjamin Haddad hailed the decision as a significant development for the continent. “SAFE is a major step forward,” he told reporters, “because it reinforces our commitment to prioritising European industries, reducing external dependence—including on the United States—and bolstering Europe’s strategic autonomy.”
However, Haddad stressed that this initiative should be seen as a starting point, not the endpoint. “It’s just one step—we’ll need to go much further,” he said.
SAFE forms part of a broader EU effort to revitalise its defence sector. Brussels has said the loan mechanism, combined with more flexible budgetary rules, could eventually unlock as much as €800 billion in defence spending across the bloc.
The move also comes on the heels of a new EU-UK defence cooperation agreement, which marks a fresh chapter in post-Brexit relations. While this agreement lays the groundwork for future collaboration, the UK would need to negotiate a separate arrangement to allow British defence firms full access to the SAFE scheme.
