EU Approves €150 Billion Defense Fund in Landmark Move to Boost Military Power

In a major step toward strengthening its defense capabilities, the European Union has approved a €150 billion fund aimed at modernizing the continent’s military infrastructure. The fund—named SAFE (Strategic Arsenal for Europe)—marks the first concrete phase of European Commission President Ursula von der Leyen’s €800 billion “ReArm Europe” initiative.

Approved quietly by EU ministers amid global focus on ongoing conflicts and pivotal elections, SAFE is designed to provide direct loans to EU member states for upgrading their arsenals and reinforcing Europe’s strategic autonomy in defense.

A key provision of the fund requires that at least 65% of each project’s value be sourced from companies based in the EU, the European Economic Area, or Ukraine. This condition ensures that the funding supports Europe’s own defense industry and supply chain, rather than benefiting foreign manufacturers.

The SAFE fund represents one of the most ambitious defense financing moves in EU history, signaling a turning point in the bloc’s approach to collective security and industrial sovereignty.