EU Approves €150 Billion SAFE Defense Fund to Boost Military Capabilities

The European Union has formally approved the Security Action for Europe (SAFE) initiative on May 27, 2025. This initiative aims to bolster member states' defense capabilities amidst growing security threats. The EU Council approved the SAFE instrument, a key part of the ReArm Europe - Readiness 2030 plan. SAFE will enable the European Commission to raise up to €150 billion from capital markets. These funds will assist member states in investing in critical defense areas. These areas include air and missile defense systems, drones, and other essential technologies. The loans will be available to member states for defense investments, promoting a coordinated European approach to defense industrial investments. Ursula von der Leyen, President of the European Commission, hailed the approval as a "decisive step forward." She emphasized that Europe must take greater responsibility for its security and defense. The SAFE initiative is expected to benefit Ukraine and strengthen Europe's defense industrial base. The EU aims to mobilize up to €800 billion in defense investments through the Readiness 2030 strategy, combining EU funds, national spending, and private sector contributions.