The European Union's Security Action for Europe (SAFE) fund, established to enhance the bloc's defense capabilities, has attracted significant interest from member states. As of late July 2025, 18 EU countries have applied for loans totaling at least €127 billion to finance joint defense procurement projects. The fund, which aims to mobilize up to €150 billion, offers low-interest loans to EU members, Ukraine, and countries with EU defense agreements, such as the UK, for acquiring essential military equipment, including air and missile defense systems, artillery, drones, and refueling infrastructure.
Poland has submitted the largest request, seeking approximately €45 billion. Other countries, including France and Spain, have also expressed interest, with France reportedly applying for around €15 billion and Spain seeking €1 billion for eight projects. The SAFE fund encourages collaborative procurement among member states and partners to strengthen the European defense industry and reduce reliance on external suppliers. To qualify for the loans, projects must involve at least two participating countries and adhere to specific criteria, such as ensuring that 65% of the project's value originates from companies within the EU, the European Economic Area, or Ukraine.
The initiative follows diminished U.S. security prioritization in Europe and rising concerns over regional security threats. The SAFE fund is part of the broader "ReArm Europe" plan, unveiled in March 2025, which aims to establish robust European defense capabilities by the end of the decade. The European Commission has indicated that the initial interest allows it to begin preparations for raising capital on financial markets. Countries have until November 30, 2025, to submit their loan applications, with the European Commission assessing requests promptly upon receipt.
While the initiative has garnered considerable support, it has also sparked discussions regarding potential democratic deficits, highlighting the need for transparency and accountability in its implementation. The EU's leaders emphasize the urgency of this initiative, recognizing the imperative to respond effectively to the shifting geopolitical dynamics and to bolster the European defense industry. The coming months will be crucial in assessing the effectiveness of the SAFE fund and the "ReArm Europe" plan as the EU takes decisive steps to ensure its security independently.