EU agrees to establish SAFE fund of €150 billion to strengthen defense and support Ukraine

The European Union has reached a principled agreement to establish a new rearmament fund called Security Action for Europe (SAFE), amounting to €150 billion. This credit mechanism aims to enhance the defense capabilities of member states and support the strengthening of the European defense industry.

This is reported by AgroReview

Main objectives of the SAFE fund

The SAFE initiative was proposed by the European Commission in March 2025 against the backdrop of a rapidly deteriorating security situation in Europe, driven by the increasing threat from Russia and the potential reduction of the U.S. military presence on the continent. Funding will be provided through joint borrowing by EU countries.

The fund will offer loans not only to EU member states but also to individual other countries, including Ukraine, to enhance their defense capabilities. One of the key tasks of SAFE will be to assist governments facing significant challenges due to rising defense expenditures. Special attention will be given to the development of the European military-industrial complex.

Benefits for Ukraine and European security

“One of the key additional benefits of SAFE for Ukraine is that this tool will enhance the ability of EU countries to transfer more defense capabilities to Ukraine, particularly from their own stocks.”

The establishment of the SAFE fund signals the EU’s readiness to increase support for Ukraine in the face of Russian military aggression. Through this new mechanism, EU countries will have greater opportunities to provide assistance to Ukraine from their own stocks, which is expected to significantly impact the country’s defense capabilities. SAFE will also help strengthen European cooperation in the field of security and ensure the resilience of the European defense system in the medium term.