The EU General Affairs Council officially approved the creation of SAFE—a new financial instrument aimed at bolstering defense capabilities across member states—on Tuesday, May 27.

Originally proposed by the European Commission in March under the ReArm Europe—Readiness 2030 initiative, the Support for Ammunition and Forces in Europe (SAFE) mechanism marks a significant step toward a more integrated and better-prepared European defense landscape.

Through SAFE, the EU will make up to 150 billion euros available to participating member states. The funds will be disbursed as long-term loans on competitive terms, contingent upon national plans and formal requests from interested countries. These loans are to be repaid by the recipient states.

In an effort to boost cost-efficiency, enhance interoperability, and prevent the splintering of Europe’s defense industry, the SAFE program will primarily allocate loans to joint procurement projects that include a minimum of two participating nations.

However, in light of the current geopolitical climate and the urgent need for increased investment in defense equipment, SAFE will also allow for limited-time exceptions—enabling single-country procurement under specific circumstances.

According to an official EU statement, “SAFE opens a new chapter in cooperation with third countries.” Notably, Ukraine and the EFTA/EEA countries—Switzerland, Iceland, Liechtenstein, and Norway—will be treated on par with EU member states. These nations will not only be eligible to take part in joint procurement but may also source equipment from their own defense industries.

SAFE also welcomes participation from EU accession countries, candidates, potential candidates, and countries with formal security and defense partnerships with the EU—such as the United Kingdom.

These countries will have access to joint procurement opportunities, and may engage in additional bilateral or multilateral agreements that could expand their eligibility.

This development carries particular significance for Greece, as in practice it implies that countries like Turkey are not automatically excluded from participating in SAFE-backed programs.