Von der Leyen: 150 billion SAFE Plan has been fully subscribed

Brussels – EU Member States have subscribed to all the funding available under the SAFE plan to support the European defense industry, Ursula von der Leyen, President of the European Commission, announced while visiting Riga.

“I am pleased to announce that we have reached full subscription of the whole EUR 150 billion,” said von der Leyen. 

SAFE is part of the EUR 800 billion defense industrial plan launched by the European Union. She insisted that “it is a joint procurement. It means air and missile defense, cyber-defense – and of course, drones.”

“I am very glad that 19 Member States, including Latvia, have now requested support from SAFE. I am pleased to announce that we have reached full subscription of the whole EUR 150 billion. Many Member States have indicated that they will also use it to support the Ukrainian defense industry. So that is a true European success.”

Von der Leyen then explained that “now we have three tasks to work on. First, in October, we will take stock together at the European Council with our Roadmap for Readiness 2030. So we are going to look into the capability gaps and how to close them.”

Secondly, the President said that “by 2030, our aim is to have significantly strengthened our defense capacities and closed the gaps. And third, we will contribute to making sure that Ukraine has ironclad security guarantees.”

In the new EU budget recently presented by the Commission, “we have a fivefold increase in defense spending and a tenfold increase in funding for military mobility. Because we think it is high time for readiness. And we have tripled the proposal for migration and border strengthening,” von der Leyen concluded.

What is SAFE

SAFE is a new EU financial instrument designed to support Member States wishing to invest in industrial production in the defense sector through joint procurement, with a focus on priority capabilities.

 Through SAFE, the EU will provide up to EUR 150 billion, which will be disbursed to interested Member States upon demand and based on national plans. The disbursements will take the form of competitively priced long-maturity loans, to be repaid by the beneficiary member states.

To ensure economies of scale and interoperability, and to reduce the possible fragmentation of the EDTIB, beneficiary member states will, in principle, be required to carry out common procurements involving at least two participating countries to qualify for the loans.

 In response to the current geopolitical situation and the urgent need for massive investment in defense equipment, SAFE will also allow procurement involving only one member state for a limited period.