The approval of SAFE was finalized during a recent meeting of European ministers in Brussels, where 26 countries supported the initiative, with Hungary being the only nation to abstain.

The regulation was passed using an urgent legislative procedure, which bypassed the European Parliament, leading to potential legal challenges from Parliament President Roberta Metsola.

To qualify for loans, member states must generally conduct joint procurements involving at least two countries, promoting economies of scale and interoperability in defense efforts.

Countries have six months to prepare joint procurement proposals and request loans from the Commission, with final requests due by November 2025, allowing for urgent needs to be addressed swiftly.

The programme mandates that at least 65% of components for financed projects be produced within the EU, which aims to stimulate local defense economies and create high-skilled jobs.

Procurement contracts will limit components from outside the EU, EEA-EFTA, and Ukraine to a maximum of 35% of the total cost, with stricter rules for certain advanced weapon systems.

The European Union has officially approved the Security Action for Europe (SAFE) programme, which allocates €150 billion in concessional loans aimed at enhancing joint defense investments among member states.

This initiative is designed to bolster European military capabilities in critical areas such as missile production, ammunition, drones, and air defense systems, addressing supply shortages amid escalating defense demands.

Non-EU countries with existing security partnerships, including Norway and Ukraine, may also participate in the programme, while the UK is in discussions to join following ongoing negotiations.

Ursula von der Leyen, President of the European Commission, emphasized the necessity for Europe to be able to defend itself independently by 2030, particularly in light of shifting US foreign policy.

The SAFE programme is part of a broader strategy to enhance European defense capabilities in response to geopolitical tensions, including the ongoing conflict in Ukraine and recent Russian military actions.