As reported by Reuters, the EU nations have come to a preliminary agreement on establishing a new credit mechanism for rearmament purposes entitled the Security Action For Europe (SAFE), which is valued at €150B. This initiative was introduced by the European Commission in March 2025 and will be financed through joint borrowing. The fund is intended to offer loans to EU member states as well as other nations, including Ukraine, to boost their defense capabilities and advance the European defense sector.
The launch of the SAFE instrument is a response to the significant decline in security across Europe, prompted by escalating threats from the Russian Federation and the US’ plans to reduce its military presence within the EU. SAFE aims to assist EU members that may struggle with increased defense expenditures.
A notable additional advantage that SAFE offers Ukraine is its potential to enhance the ability of EU countries to provide greater defense resources to Ukraine, including from their own inventories.