The European Commission has approved the disbursement of €1,181,503,924 for Cyprus under the SAFE program, out of a total fund of €150 billion. The decision was taken on Tuesday afternoon during the College of Commissioners’ meeting in Strasbourg.

With this decision, the Commission has authorized the provisional allocation of €150 billion in financial assistance to strengthen defense readiness across the EU. This step, part of the “Security Action for Europe” (SAFE) initiative, is expected to enhance the Union’s defense capacities, help member states address critical gaps, and support the joint purchase of defense equipment.

Since its approval by the European Council in May 2025, SAFE has drawn significant interest. Nineteen member states have already expressed their intention to participate, collectively requesting support that exceeds the program’s available budget. According to the Commission, SAFE will provide long-term, low-cost loans to enable member states to quickly acquire the defense equipment they need.

SAFE will also allow the EU to strengthen support for Ukraine by linking its defense industry to the program from the outset. Key features include a ten-year grace period for loan repayment, competitive interest rates, and options for bilateral agreements with third countries to expand eligibility.

Member states must now prepare their national investment plans, outlining how they intend to use the potential financial assistance. These plans must be submitted by the end of November 2025. The Commission will then evaluate them, aiming for the first disbursements in early 2026.

SAFE was officially adopted on 27 May 2025 as part of the “Preparedness 2030” defense package, designed to provide financial leverage to EU states. However, due to the urgent procedure under which it was passed, the European Parliament was bypassed and has since filed a case against the Commission before the European Court of Justice.

SAFE also allows candidate countries, potential candidates, and states with EU security and defense partnership agreements to participate in joint procurements and contribute to overall demand.