EU Launches €150 billion Strategic Plan to Strengthen European Industrial Power.

According to information published by the European Commission on X on May 27, 2025, the European Affairs ministers of the twenty-seven EU member states approved in Brussels an unprecedented joint arms procurement program worth €150 billion. The decision, backed by 26 member states with Hungary abstaining, marks a significant step in the development of European defense policy, against a backdrop of ongoing tensions with Russia and growing uncertainty over long-term U.S. security support.
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The Eurodrone MALE (Medium Altitude Long Endurance), developed jointly by Germany, Spain, France, and Italy, symbolizes Europe’s push for technological sovereignty under the newly adopted SAFE program, aimed at strengthening the EU’s common defense industry (Picture source: GMV)

The program, named SAFE (Security Action for Europe), will provide €150 billion in loans to collectively fund the acquisition and development of European military capabilities in strategic sectors. These include missile production, ammunition, drones, and air defense systems, areas in which European industrial supply remains insufficient in the face of rising defense demands. SAFE is designed to address three key challenges: the urgent need for rearmament in response to the war in Ukraine, the rationalization of defense spending through joint procurement, and the aim of building genuine European military sovereignty.

SAFE represents the first operational element of a broader plan presented by the European Commission in late March, which aims to mobilize up to €800 billion to rearm the continent. The program has been welcomed by the current rotating presidency of the EU Council, held by Poland, which considers it a major initiative in terms of European-level defense investment. French Secretary of State for European Affairs Benjamin Haddad also emphasized that the initiative reflects progress in the development of European defense, while underlining the need for further action.

Beyond financial considerations, SAFE seeks to offer a strategic response to the fragmentation of national military policies. It aims to improve coordination and interoperability among European armed forces. By centralizing funding and encouraging joint projects, the program seeks to establish European industrial standards that can enhance operational efficiency and reduce reliance on third-country suppliers, particularly the United States. This strategic shift is intended to limit dependence on non-European arms imports and strengthen the role of European defense companies such as Airbus, Thales, MBDA, Leonardo, and Rheinmetall, which are expected to be key beneficiaries of the program.

Member states that have been particularly active in enhancing their military capabilities, such as France, Germany, Poland, Italy, and the Baltic countries, are expected to benefit from the pooling of requirements made possible by SAFE. Shared costs and coordinated procurement planning will enable these countries to acquire equipment more quickly and cost-effectively. Several non-EU countries, including Norway and Ukraine, will also be eligible to participate due to their existing security partnerships with the EU, while the United Kingdom, which recently signed a cooperation agreement with the EU, could join the program following the conclusion of ongoing negotiations.

To safeguard the technological sovereignty of the systems financed through SAFE, a central oversight authority will be established. Its role will be to ensure that no foreign-made component or software integrated into a European system can be exploited for remote access or control. This measure specifically targets sensitive technologies sourced from the United States, which could otherwise pose security risks for end users in Europe.

The industrial structure of projects financed under SAFE will be subject to strict European content requirements. At least 65% of the components must be produced within the European Union, with no more than 35% sourced from countries outside the European Union. This condition is designed to stimulate local defense economies, relocate critical production chains, and support high-skilled employment in advanced technological sectors.

With the adoption of SAFE, the European Union is initiating a new phase in defense cooperation, relying on collective action and shared financing to reinforce continental security. As the war in Ukraine has already led EU member states to increase their defense budgets by over 30% in three years, this new initiative aligns with a strategic ambition for industrial resilience, capacity coherence, and enhanced defense autonomy. The first funding disbursements are expected by the end of the year, marking the beginning of a new era for European military cooperation and defense policy development.