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EU ministers have greenlit a massive €150 billion defense investment fund—dubbed the Security Action for Europe (SAFE)—as the bloc ramps up its military readiness in response to Russia’s aggression and growing uncertainty over U.S. security guarantees.
In a landmark decision Tuesday, European Union ministers meeting in Brussels approved the creation of the Security Action for Europe (SAFE), a €150 billion ($170.7 billion) arms fund designed to strengthen joint defense capabilities across the continent. The initiative reflects escalating concerns about a possible future Russian attack and wavering U.S. support under President Donald Trump.
The measure passed with overwhelming support, with 26 out of 27 EU countries in favor and Hungary abstaining, according to EU diplomats.
Poland, currently holding the EU’s rotating presidency, announced the move on X (formerly Twitter), calling it “the first large-scale defence investment programme on the EU level.” The country added, “The more we invest in our security, the better we deter those who wish us harm.”
The SAFE program will be funded through joint EU borrowing and provide low-interest loans to member states for collaborative defense projects. It aims to eliminate national silos in defense procurement and bolster the continent's defense industry, with a strong “buy European” component.
To qualify for SAFE financing, at least 65% of a project’s value must come from companies located in the EU, the broader European Economic Area, or Ukraine. However, firms from countries with official Security and Defence Partnerships with the EU may also participate if they meet additional criteria.
Earlier this month, the United Kingdom signed such a partnership agreement, potentially opening the door for major UK defense firms like BAE Systems to engage in SAFE-funded projects.
The European Commission first proposed the fund in March amid heightened geopolitical tension and a reassessment of Europe’s security strategy. Since Russia’s 2022 full-scale invasion of Ukraine, EU defense spending has surged more than 30%, but EU leaders have repeatedly emphasized that current efforts still fall short of what is needed.
Moscow has denounced the EU’s military buildup, claiming it is based on an “invented story” of a Russian threat. Yet European leaders remain unconvinced, pointing out that similar dismissals preceded the Ukraine invasion.
Beyond the immediate goal of deterring Russian aggression, SAFE is also part of a broader push by the EU to assert strategic autonomy and reduce dependency on non-European defense suppliers—particularly in light of shifting U.S. foreign policy under Trump, who has repeatedly questioned NATO obligations and U.S. involvement in European defense.
With the SAFE fund now legally approved, the EU is poised to enter a new era of collective military investment—one that could reshape the European security landscape for decades to come.
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