Today, Cyprus received its first payment of €177.2 million. Under the Security Action for Europe (SAFE) defence financial instrument, an amount corresponding to 15% of its total allocation of €1.2 billion.
SAFE is a €150 billion financial instrument. It provides loans to Member States. It mainly finances joint procurement of ammunition, missiles, air defence systems and ground combat systems produced within the European Union. It is part of the European Commission's ReArm Europe/Readiness 2030 plan, which aims to mobilise investments of more than €800 billion. in the field of defence across the European Union.
The pre-financing will allow Cyprus to promote key defence investments, strengthen its resilience and upgrade its military capabilities in line with common European objectives. SAFE is designed to enable swift and coordinated action, improve the interoperability of European armed forces and strengthen the European defence industry, including through joint procurement and closer cross-border cooperation.
Andrews Coubilius, Commissioner for Defence and Space, said:
"Today's pre-financing to Cyprus under SAFE demonstrates Europe's commitment to strengthening our common security and defence. This support will help Cyprus invest faster in the capabilities it needs, while contributing to our shared European goals of a stronger, more resilient and more interconnected defence industry. SAFE is about solidarity, preparedness and ensuring that Member States can jointly respond to Europe's security needs."
The payment of this pre-financing follows the completion of all required procedural steps and reflects the EU's commitment to provide timely and substantial support through SAFE. Further payments will follow, as the agreed milestones are achieved and the implementation of the relevant actions progresses.
The SAFE financial instrument is financed through borrowing by the European Union from the financial markets. This allows for the granting of long-term loans to Member States that so request, on competitive terms and an attractive financing structure. The terms of the SAFE loans benefit from the European Union's strong credit rating. All SAFE loans will be repaid by the Member States receiving them.
