The countries of the European Union reached an agreement on the creation of a new credit fund called Security Action for Europe (SAFE) in the amount of €150 billion, which should strengthen the defense potential of the EU. About this informs Reuters.
SAFE financing involves the joint raising of funds through a collective borrowing mechanism. The created fund will provide loans to both EU member states and individual states, in particular Ukraine, with the aim of strengthening defense capabilities and developing the European defense-industrial complex. The launch of the mechanism is a response to the significant deterioration of the security situation in Europe, which has been observed since the beginning of 2025.
The European Commission emphasized that Russia’s aggressive actions against Ukraine and Russia’s transition to a military economy model pose an “existential threat” to the European Union. Against this background, the US, which has traditionally been a key partner in European security issues, is sending signals about a possible reduction in its participation, which pushes the EU to urgently build up its own defense potential.
The current level of investment in defense is insufficient to overcome the consequences of many years of underfunding and to promptly meet the growing needs in the supply of weapons. However, an increase in defense spending could further complicate the financial situation of member states whose budgets are already under significant pressure.
The introduction of SAFE is designed to help these countries cope with the financial difficulties caused by the sharp increase in defense needs. For Ukraine, this mechanism creates additional opportunities: it enables European states to more actively transfer weapons to Kyiv, in particular from their existing reserves.
We will remind that in March, the president of the European Commission, Ursula von der Leyen, presented the initiative “Rearm Europe”, which provides for the mobilization of about €800 billion for defense needs and the expansion of aid to Ukraine. As von der Leyen emphasized, Europe is ready to significantly increase investments in the security sphere in order to respond to modern challenges, support Ukraine and guarantee the long-term stability of the EU.
