Strasbourg: The European Commission has approved the allocation of £1,181,503,924 from the £150 billion SAFE fund for Cyprus. The decision was made during a meeting of the College of Commissioners in Strasbourg on Tuesday afternoon.
According to Cyprus News Agency, this financial assistance is part of the Security Action for Europe (SAFE) instrument, which aims to bolster defence preparedness across the European Union. The Commission’s decision also includes £787,669,283 for Greece. The SAFE programme, which received approval from the European Council in May 2025, is designed to strengthen the EU’s defence capabilities by providing substantial funds to member states to address critical defence gaps and facilitate joint procurement of defence products.
The initiative has garnered significant interest, with 19 member states expressing their intention to participate, exceeding the available budget. The SAFE programme offers long-term, low-cost loans and includes a ten-year grace period for loan repayment, competitive interest rates, and options for bilateral agreements with third countries. This flexibility is intended to enhance eligibility and participation.
Member states are now tasked with drafting national investment plans to outline the use of the financial assistance. These plans are to be submitted by the end of November 2025, with the European Commission aiming to make the first disbursements in early 2026. The SAFE Regulation was adopted on 27 May 2025, as part of the “Readiness 2030” initiative, which provides financial leverage to EU member states. However, the urgency procedure led to the European Parliament being sidelined, prompting it to take the Commission to the European Court of Justice.
The SAFE programme also extends opportunities for acceding countries, candidate countries, potential candidate countries, and those with security and defence partnerships with the EU to participate in joint procurement, thereby contributing to the overall demand for defence resources.