The EU Council approved a set of executive decisions on Wednesday making financial support under the Strategic Autonomy Fund for Europe (SAFE) available to eight member states, including Cyprus, Belgium, Bulgaria, Denmark, Spain, Croatia, Portugal, and Romania.
Cyprus to receive over €1.18 billion
The approval enables Cyprus to strengthen its defense production with loans totalling €1,181,503,924, starting with an initial disbursement of €177,225,588.60.
Second package for additional member states
A second set of executive decisions covering Estonia, Greece, Italy, Latvia, Lithuania, Poland, Slovakia, and Finland has been approved by EU ambassadors and is expected to receive formal Council approval on 17 February. Greece, for example, has requested €787,669,283 via SAFE, with an initial payment of €118,150,392.45.
EU and Cypriot leadership comments
“Today’s decisions show that the EU does not just talk about defense – we deliver results. Through SAFE, we strengthen security where it matters most,” said Cyprus Defence Minister Vasilis Palmas regarding the first package approved under the Cypriot Presidency.
Loans to enhance defense capabilities
Following positive assessments of National Defense Investment Plans by the European Commission, the decisions pave the way for the issuance of the first wave of affordable long-term loans. These funds allow participating countries to acquire modern defence equipment and improve military readiness.
EU-Canada SAFE agreement
The Council also approved authorisation for the EU to sign a bilateral agreement with Canada, allowing Canadian companies and products to participate in public contracts under SAFE. Canada becomes the first non-European country to participate in the fund.
After negotiations, the agreement received preliminary approval on 19 December 2025. The agreement can be applied provisionally and will become official once the European Parliament grants consent.
Next steps
After approval of the executive decisions, the European Commission will conclude loan agreements with participating member states and begin disbursing pre-financing payments.
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