The European Union has taken another major step in strengthening its military capabilities, approving fresh national investment plans under its €150 billion defence loan scheme as part of the wider Readiness 2030 strategy. The programme is designed to sharply increase defence spending before the end of the decade, amid warnings from intelligence agencies that Russia could pose a direct threat to another European country in the coming years.
On Monday, the European Commission approved defence investment plans from Estonia, Greece, Italy, Latvia, Lithuania, Poland, Slovakia and Finland. Together, these eight countries requested €74 billion in funding, nearly half of the total amount the EU plans to raise for its Security Action for Europe (SAFE) programme. Poland alone accounted for €43.7 billion of that figure.
Building Military Strength Across Europe
This latest approval follows an earlier round in January, when eight other member states — Belgium, Bulgaria, Denmark, Spain, Croatia, Cyprus, Portugal and Romania — secured approval for plans worth a combined €38 billion. In total, 19 EU countries have now applied to use SAFE funding, though investment plans from Czechia, France and Hungary are still under review.
Defence Commissioner Andrius Kubilius said the latest decisions show Europe is moving beyond planning and into action. He described the funding as a clear message that the EU is serious about strengthening its military capabilities and supporting its defence industry with real financial backing.
What the SAFE Programme Funds
SAFE is a central pillar of the Commission’s Readiness 2030 plan, which aims to unlock up to €800 billion in defence investment by the end of the decade. The programme focuses on joint procurement of priority military equipment, including ammunition, missiles, artillery systems, drones, air and missile defence, cybersecurity tools, artificial intelligence, electronic warfare systems and the protection of critical infrastructure and space assets.
A key requirement is that most of the equipment must be produced in Europe. No more than 35% of component costs can come from outside the EU, the EEA-EFTA area or Ukraine. Canada, which has a bilateral agreement with the EU, is also allowed to participate under the same conditions.
What Comes Next
The scheme is particularly attractive for countries with lower credit ratings, as they can borrow at more favourable rates through the European Commission. Larger economies such as Germany, which can already secure low borrowing costs, have chosen not to apply.
EU ministers now have four weeks to formally approve the latest investment plans, with the first payments expected to be made in March 2026. European Commission President Ursula von der Leyen has previously suggested the programme could be expanded further, noting that demand has already exceeded expectations, with member states initially requesting more than the €150 billion available.
