European Union countries have reached an important agreement to establish a new credit mechanism known as Security Action for Europe (SAFE), amounting to €150 billion, aimed at rearmament. This was reported by Reuters. The initiative was proposed by the European Commission in March 2025.
This is reported by Finway
Funding for the fund will be carried out through joint borrowing, allowing loans to be provided to EU member states as well as other countries, including Ukraine. The primary goal of these loans is to strengthen the defense capabilities of the mentioned countries and support the development of the European defense industry.
Response to Threats from Russia
The establishment of the SAFE mechanism is linked to the sharp deterioration of the security situation in Europe, driven by the increasing threat from Russia, as well as the intentions of the United States to reduce its military presence in the EU. SAFE is expected to become an important resource for EU countries that may face significant challenges due to rising defense costs.
Benefits for Ukraine
A key advantage of the SAFE mechanism for Ukraine is that this tool will allow EU countries to transfer more defense capabilities to Ukraine, including from their own stockpiles. This will contribute to strengthening Ukraine’s defense capacity in the face of ongoing challenges.