Commission approves first wave of defence funding for eight Member States under SAFE

January 16, 2026 by European Union Leave a Comment

Facebook X LinkedIn WhatsApp Objective is to facilitate up to €800 billion in defence investment over four years EU-wide time limit for the issuing of permits for defence projects Easier procedures for intra-EU transfers and procurement Simplified eligibility procedures for the European Defence Fund and specific measures for testing projects and actions in Ukraine On Monday, MEPs from four committees approved new proposals to accelerate defence investment and improve the EU’s responsiveness in the face of security challenges. The set of legislative files, part of the so-called “Omnibus V” package of EU simplification measures, aims to speed up the approval of permits for defence projects and the export of defence equipment between EU countries, simplify security and defence procurement and EU cooperation on defence contracts, ensure that EU chemical regulations accommodate defence needs, and simplify the implementation of the European Defence Fund. These proposals also aim to facilitate up to €800 billion in defence investment over the next four years under the ReArm Europe Plan/Readiness 2030, allowing member states and the industry to react more effectively in response to escalating security challenges. Acceleration of permit-granting for defence readiness projects Agreeing on the need to accelerate permit-granting procedures for defence projects, such as the construction of new industry plants or expansion of existing facilities, MEPs want an EU-wide default time limit for permit decisions to be set at 50 working days. They say, however, that member states must be able to grant extensions of up to 25 working days for large projects and by 50 working days if a project is of exceptional complexity, raises exceptional risks for health, safety or environment, or specific national security clearance is required. Such extensions will be communicated to the project promoter, accompanied by an explanation of their reasoning and an expected decision date. If national authorities do not follow up by the applicable deadlines, the principle of tacit approval should apply, MEPs argue. The report also calls on EU countries to establish single points of contact for defence project promoters, with the digital tracking of applications, annual reporting to the Commission on permit activity and SME support, and EU monitoring of tacit approvals to ensure transparency and consistent implementation. Intra-EU transfers of defence-related products and simplified procurement MEPs back the Commission's approach to simplify intra-EU transfers and procurement of defence-related products. To speed up intra-EU transfers of defence products, EU countries should introduce more exemptions to often complex transfer licensing schemes, in particular transfers concerning the same company, and use simpler licensing arrangements (so-called general transfer licenses) to support innovation and the emergence of disruptive technologies. MEPs also stress the importance of facilitating transfers of defence products needed to implement EU funded projects. Members support a proposal to use the simpler so-called negotiated procedure (direct talks with suppliers, often bypassing open tenders, for urgent needs) for certain common procurements and innovative products and services, e.g. replenishing depleted stocks more quickly. When it comes to this procedure, MEPs want the use of components originating outside EU, EEA EFTA countries, Ukraine and countries that are part of a security and defence partnership with the EU to be limited to 35% of the estimated cost of the final product They also favour changing the rules so that only larger contracts are subject to existing EU procurement rules, allowing countries to focus their resources on the most critical contracts, and of relaxing the rules so that a contracting authority from one EU member state can join the procurement process of another. Facilitating defence investments and conditions for defence industry In the text, MEPs agree with proposals to simplify the management and implementation of the European Defence Fund (EDF). The committees backed reducing reporting and documentation requirements to boost the participation of SMEs and mid-sized businesses in the fund. They also propose simplifying the list of actions which can be eligible for EU funding and clarify that projects and actions funded by the EDF can be tested in Ukraine. MEPs further clarify how EU’s environmental and chemicals legislation, such as REACH, can apply to defence activities, saying that EU countries already enjoy flexibility in the use of existing exemptions to achieve defence readiness objectives. The have also added provisions for projects where production lines are used for both defence and civilian purposes. Quotes Quotes from committee chairs and co-rapporteurs are available here. Votes results The text on the acceleration of permit-granting for defence readiness projects was approved by 62 votes in favour, 6 against with 11 abstentions. The text on intra-EU transfers of defence-related products and simplified procurement was approved by 59 votes in favour, 13 against with 7 abstentions. The text on facilitating defence investments and conditions for defence industry was approved by 137 votes in favour, 30 against with 21 abstentions. Next steps Parliament’s plenary will have to endorse the adopted positions during a forthcoming session before negotiations with the incoming Cypriot Presidency of the Council can start on the final shape of the legislations. Background The EU’s Defence Readiness Omnibus package of proposals was presented by the Commission in June 2025. It is designed to simplify regulations and remove administrative hurdles to boost the European defence industry. It aims to speed up defence investments, enhance cooperation, and strengthen the European defence technological and industrial base (EDTIB) by making rules for procurement, financing, cross-border collaboration and permitting more flexible and efficient. It includes proposals for two regulations and one directive, as well as drafts of delegated regulations. — (Credit: Unsplash)

This article is brought to you in association with the European Commission.

The European Commission has endorsed the national defence plans of eight Member States, marking a milestone in Europe’s push to strengthen its security. The Commission submitted a proposal to the Council to approve financial assistance for Belgium, Bulgaria, Denmark, Spain, Croatia, Cyprus, Portugal and Romania.

President of the European Commission, Ursula von der Leyen, said: “Last year, the EU has made more progress in defence than in decades before. The White Paper and the Readiness Roadmap 2030 enabled Member States to mobilise up to 800 billion euros for defence. This includes the 150 billion euros for joint procurement – SAFE. We have now approved an initial batch of SAFE plans for Belgium, Bulgaria, Denmark, Spain, Croatia, Cyprus, Portugal and Romania. The others will follow shortly after. It is now urgent for the Council to approve these plans to allow fast disbursement.”

This decision follows a rigorous assessment of the countries’ “National Defence Investment Plans” under the Security Action for Europe (SAFE) initiative. The endorsement paves the way for the first wave of low-cost, long-term loans to be released, allowing these nations to urgently scale up their military readiness and acquire needed modern defence equipment. It also integrates Ukraine into the EU security ecosystem and ensures our support is both rapid and sustainable.

The funding levels for each country were provisionally set in September, based on principles of solidarity and transparency. For example, €1.18 billion has been earmarked for Cyprus, while €16.68 billion is tentatively allocated for Romania. This group of 8 Member States are entitled to around €38 billion after the loan agreements will be signed.These funds will provide a vital boost to strategic capabilities where they are needed most.

Next Steps

With the Commission’s assessment complete, the Council now has four weeks to adopt the implementing decisions. Once approved, the Commission will finalize the loan agreements, with the first payments expected to hit the ground in March 2026.

Background

The SAFE Regulation was adopted on 27 May 2025, as part of the Readiness 2030, an ambitious defence package providing financial levers to EU Member States to drive an investment surge in defence capabilities.

SAFE will allow Member States to immediately and massively scale up their defence investments through joint procurement from the European defence industry, focusing on priority capabilities. This will contribute to ensuring interoperability, predictability, and reducing costs for a strong European defence industrial base. Ukraine and EFTA/EEA countries will be able to join common procurement, and it will be possible to buy from their industries.

SAFE will also allow acceding countries, candidate countries, potential candidates and countries having signed Security and Defence Partnerships with the EU to join common procurement and contribute to aggregated demand. They can also negotiate specific, mutually beneficial agreements on the participation of their respective industries in such procurement.

For More Information

White Paper for European Defence and the ReArm Europe Plan- Readiness 2030

SAFE

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