The European Commission took another step towards a safer European Union with the approval of the second wave of National Defence Investment Plans under the new Security Action for Europe (SAFE) initiative. The European Commission submitted to the European Council the proposal to approve funding for eight Member States – Lithuania, Estonia, Greece, Italy, Latvia, Poland, Slovakia and Finland.
The European Commission’s assessment of the National Defence Investment Plans is opening the door for the first wave of low-cist, long-term loans. The eight EU Member States together are entitled to approx. EUR 74 billion financial assistance for the most needed strategic capabilities.
Lithuania shall receive EUR 6.375 billion of SAFE funding for defence development. The amount exceeds the minimum of EUR 5 billion that he Ministry of National Defence had submitted a request for.
Lithuania’s capability target of the funding is to fully equip the Land Force Division by 2030 with combat, support and logistical systems and ammunition stocks. The financial resources inevitable in the process were conveniently available via SAFE developed by the European Commission on particularly favorable terms.
“The decision of the European Commission to greenlight over EUR 6.3 billion for Lithuania is a critical boost in our efforts of strengthening defensive capabilities. It is not just financial aid but a clear credit of trust to Lithuania and our concept of enhancing deterrence and defence. The money will accelerate the Division formation process, pay for the required ammunition stocks, modernization of weaponry systems and contribute to the Baltic Defence Line,” says Minister of National Defence Robertas Kaunas.
Lithuania needs the SAFE support to accelerate defence capability development with investments in the Land Force Division, Baltic Defence Line enhancement (including countermobility measures and mines), as well as upgrading and maintenance of the other Lithuanian Armed Forces services.
A part of the SAFE funding will be used for different forms of assistance for Ukraine, including joint procurement with Ukraine, military equipment acquisition from Ukraine or acquisitions for Ukraine from EU manufacturers. SAFE also advances a deeper integration of Ukraine in the European security ecosystem through sustained and flexible assistance.
What’s next
The European Council has next four weeks to pass the implementation decisions. Once that is approved, the European Commission will finalise loan contracts and be ready to deliver the first transfers in March 2026. At the same time the European Commission will be processing the plans submitted by the rest of the members.
SAFE is an interim borrowing instrument designed by the European Commission up to EUR 150 billion in full scope which will be available until 2030. The instrument enables Member States to carry out common defence procurement in priority areas – from ammunition and land force to air defence, maritime capabilities, cyber, space technology, and AI.
