European Commission Endorses €38 Billion in Defence Investment Plans for Eight EU States

The European Commission has formally endorsed the first wave of national defence investment plans under the SAFE programme, signalling accelerated implementation of the European Union’s defence finance engine. The eight member states whose plans were approved are Belgium, Bulgaria, Denmark, Spain, Croatia, Cyprus, Portugal and Romania. Upon finalisation of loan agreements, these countries are expected to access around €38 billion in EU-backed financing to modernise and expand defence capabilities.

SAFE was established as part of the wider Readiness 2030 strategic package, designed to mobilise up to €150 billion in joint defence investment and foster interoperable capability development across the EU. The Commission’s sign-off of national plans initiates the transition from planning to financing, subject to subsequent procedural steps including ratification by the European Council and contract signatures.

Among the approved allocations, Romania is set to receive the largest share, reflecting its significant investment ambitions, while Belgium’s plan also represents a substantial component of the first tranche of SAFE funding. Smaller allocations include Denmark’s approved request, which remains comparatively modest in scale versus other participants. The funds are earmarked for projects ranging from modern equipment acquisition to enhancing national force readiness.

The upcoming disbursement phase is expected to begin in early 2026 once administrative and legal requirements are completed. This initial approval round provides a blueprint for subsequent SAFE submissions from other EU states awaiting evaluation. The initiative forms a central pillar of the EU’s effort to bolster defence autonomy and coherence in capability development in response to evolving security threats.