By Kevin Akor
BRUSSELS (chatnewstv.com) — The Council of the European Union on Wednesday cleared the way for billions of euros in defence loans to eight member states under the bloc’s new Security Action for Europe (SAFE) instrument and authorized the signing of an agreement allowing Canada to participate in joint procurement projects.
The Council adopted implementing decisions making financial assistance available to Belgium, Bulgaria, Cyprus, Denmark, Spain, Croatia, Portugal and Romania. A second package covering Estonia, Greece, Italy, Latvia, Lithuania, Poland, Slovakia and Finland is expected to be formally adopted on Feb. 17 after receiving backing from EU ambassadors.
“Today’s decisions show that the EU is not only talking about defence – we are delivering,” said Vasilis Palmas, Cyprus’ minister of defence. “Through SAFE, we are strengthening our security where it matters the most.”
The decisions follow a positive assessment by the European Commission of the participating countries’ National Defence Investment Plans. The move paves the way for the Commission to release the first wave of long-term, low-cost loans to help countries acquire modern defence equipment and improve readiness.
Under the first wave, Romania is eligible for the largest maximum loan amount at about 16.68 billion euros ($18 billion), with pre-financing of roughly 2.5 billion euros. Belgium could receive up to 8.34 billion euros, Portugal up to 5.84 billion euros, and Bulgaria up to 3.26 billion euros. Other allocations include 1.7 billion euros for Croatia, 1.18 billion euros for Cyprus, 1 billion euros for Spain and nearly 47 million euros for Denmark. Several countries will receive pre-financing payments ranging from about 7 million euros to more than 1.25 billion euros.
In the second wave, Poland is set to receive the largest potential allocation, with a maximum loan amount of about 43.73 billion euros and pre-financing of more than 6.56 billion euros. Italy could access up to 14.9 billion euros, while Lithuania, Latvia, Estonia, Slovakia, Greece and Finland are also slated for multi-billion-euro support.
SAFE, adopted in May 2025 as part of the EU’s “Readiness 2030” defence package, is designed to boost investment in the European defence technological and industrial base through common procurement focused on priority capabilities. The instrument aims to expand production capacity, address capability gaps and ensure the timely availability of defence equipment.
In a separate decision, the Council authorized the EU to sign a bilateral agreement with Canada allowing Canadian companies and products to participate in procurement under SAFE. Canada will become the first non-European country to join the instrument.
The agreement was endorsed in principle by member states’ representatives in December 2025. After signature, it may be provisionally applied, but it will require the consent of the European Parliament before formal conclusion.
Under the SAFE framework, Ukraine and EFTA/EEA countries may participate in joint procurement, and other partner countries — including acceding and candidate states and those with Security and Defence Partnerships with the EU — may also take part and contribute to aggregated demand.
Following Wednesday’s decisions, the Commission will conclude loan agreements with the member states concerned and proceed with pre-financing disbursements.
