Nicosia: Today, Bulgaria and Latvia have received their initial payments under the Security Action for Europe (SAFE) defence instrument, with Bulgaria receiving £489.3 million and Latvia £524.7 million. These payments account for 15% of the total allocations of £3.3 billion for Bulgaria and £3.5 billion for Latvia.
According to Cyprus News Agency, SAFE is a £150 billion financial instrument designed to provide loans to Member States, primarily funding joint procurement of ammunition, missiles, air defence, and ground combat systems manufactured within the EU. This initiative is part of the European Commission's ReArm Europe/Readiness 2030 plan, aiming to unlock over £800 billion in defence investment across the EU.
The pre-financing will assist Bulgaria in expediting priority defence investments, enhancing resilience, and modernising its military capabilities in line with common European objectives. SAFE is structured to facilitate swift and coordinated action, improve European forces' interoperability, and bolster Europe's defence industry through joint procurement and cross-border cooperation.
Andrius Kubilius, Commissioner for Defence and Space, remarked: "With these first SAFE payments, we are helping Bulgaria and Latvia accelerate key defence investments while strengthening their readiness and resilience. We are acting swiftly and decisively to support Member States on the EU's Eastern Flank. SAFE enables Member States to invest more quickly, procure more effectively through joint action, and strengthen Europe's defence industrial base."
This payment follows the completion of all necessary procedural steps and reflects the EU's commitment to providing timely and practical support through SAFE. Further payments will be made as agreed milestones and implementation are met.
The SAFE instrument is funded by EU borrowing from financial markets, enabling competitively priced and attractively structured long-duration loans to requesting Member States. The terms of the SAFE loans benefit from the EU's strong credit rating.