Cyprus today received its first payment of 177.2 million euros under the EU’s Security Action for Europe (SAFE) defence financing instrument, an amount equivalent to 15% of its total allocation of 1.2 billion euros.
SAFE is a 150 billion euro financing instrument that provides loans to member states. It mainly funds joint procurement of ammunition, missiles, air defence systems and land combat systems produced within the European Union. It forms part of the European Commission’s ReArm Europe/Readiness 2030 plan, which aims to mobilise more than 800 billion euros in defence investment across the EU.
The pre-financing will allow Cyprus to advance key defence investments, strengthen its resilience and upgrade its military capabilities in line with shared European goals. SAFE is designed to enable rapid, coordinated action, improve the interoperability of European armed forces, and strengthen the European defence industry, including through joint procurement and closer cross-border cooperation.
Andrius Kubilius, the EU Commissioner for Defence and Space, said today’s pre-financing for Cyprus under SAFE demonstrates Europe’s commitment to strengthening shared security and defence.
He said the support would help Cyprus invest more quickly in the capabilities it needs, while contributing to shared European goals for a stronger, more resilient and more interconnected defence industry. SAFE, he said, is about solidarity, readiness and ensuring member states can respond together to Europe’s security needs.
The payment follows the completion of all required procedural steps and reflects the EU’s commitment to provide timely and substantive support through SAFE. Further payments will follow as agreed milestones are met and implementation of the relevant actions progresses.
SAFE is financed through EU borrowing on financial markets. This allows long-term loans to be granted to member states that submit a request, on competitive terms with an attractive financing structure. The terms of SAFE loans benefit from the EU’s strong credit rating. All SAFE loans will be repaid by the member states that receive them.