SAFE is a €150 billion financial instrument that provides loans to EU Member States. It primarily supports joint procurement of ammunition, missiles, air defence and ground combat systems produced within the European Union.
The instrument forms part of the European Commission’s ReArm Europe/Readiness 2030 plan. That plan aims to unlock more than €800 billion in defence investment across the European Union.
The pre-financing is intended to help Lithuania speed up key defence investments and upgrade its military capabilities. It is also meant to enhance resilience in line with common European objectives.
SAFE is designed to support rapid and co-ordinated action among Member States. The Commission said it will also boost interoperability among European forces and reinforce Europe’s defence industry through joint procurement and stronger cross-border co-operation.
Andrius Kubilius, Commissioner for Defence and Space, said: “This initial SAFE payment marks a milestone in our ongoing commitment to Lithuanian, European and Eastern Flank security. By strategically deploying these resources national and regional capabilities will be reinforced.”
The payment follows the completion of all required procedural steps. The Commission said further payments will follow as agreed milestones and implementation requirements are met.
SAFE is financed by EU borrowing on financial markets. This allows the EU to offer competitively priced and attractively structured long-duration loans, which will be repaid by the beneficiary Member States.
