in-cyprus 29 May 2025 - by Frixos Dalitis
Cyprus plans to develop its domestic defence industry using the European Union’s newly approved SAFE programme, combining enhanced military capabilities with job creation and attracting investments from abroad.
Αccording to sources, the government has assessed existing capabilities within the €150 billion funding framework approved by the EU General Affairs Council. Cypriot companies can manufacture equipment for National Guard requirements and broader security force enhancement against external and internal threats.
Domestic firms possess capabilities to produce offensive and defensive drones, surveillance equipment, personnel transport vehicles, critical defence software programmes, and advanced communication systems, according to government assessments.
Funding enables equipment procurement
The SAFE programme’s long-term financing options will support new weapons system acquisitions based on operational requirements and Cyprus’s access to US military equipment. Cyprus can collaborate with other EU member states for joint procurement of specific weapons systems through the programme.
President Christodoulides referenced the initiative twice during cabinet proceedings and subsequent press statements. He emphasised combining recent US decisions granting access to American military equipment with EU funding opportunities.
“We have moved from extensive discussions over the past 7-8 years to concrete actions. This €150 billion package will be utilised by Cyprus, combining access to US military equipment with strengthening promising domestic defence industry capabilities. Required equipment has already been catalogued,” Christodoulides stated.
Infrastructure development
The presidency announced forthcoming decisions involving Foreign Affairs, Defence, Justice, and Finance Ministers regarding defence equipment and critical infrastructure, particularly Andreas Papandreou Air Base and Evangelos Florakis Naval Base.
Christodoulides highlighted coordination with European Investment Bank financing tools, noting the EIB’s recent decision to include defence infrastructure funding within member state deterrent capability enhancement frameworks.
“We will utilise this tool with the sole objective of strengthening our country’s deterrent capability,” the president said.
Turkish participation
Addressing potential Turkish demands for SAFE programme access during Cyprus settlement talks, Christodoulides noted that third-country participation requires defence agreements with the EU, necessitating unanimous member state approval.
“If Turkey means what it says about strengthening Euro-Turkish relations, we are here to examine everything with a positive approach,” he stated.
The president concluded that priority involves creating conditions not only for settlement talk resumption based on agreed frameworks, but for Cyprus problem resolution respecting EU principles and values.
