In May 2025, the European Union approved the creation of a €150 billion defence fund known as the Security Action for Europe (SAFE). This initiative aims to strengthen Europe’s defence capabilities and support Ukraine amid ongoing Russian aggression and uncertainty over continued U.S. assistance.
The SAFE fund will enable EU member states and partners, including Ukraine, to access loans for joint arms procurement and investments in the defence industry. At least 65% of each project’s value must go to companies based in the EU, the European Economic Area, or Ukraine.
This fund is part of a broader initiative, ReArm Europe, proposed by the European Commission, which envisions mobilizing up to €800 billion to reinforce Europe’s defence infrastructure.
The SAFE fund is expected to be officially approved by EU ministers on May 27, 2025.
