On 12 August, Estonia received its first payment of €351.6 million under the Security Action for Europe (SAFE) defence instrument, representing 15% of its total allocation of €2.3 billion.
SAFE is a €150bn financial instrument providing loans to member states. It primarily funds joint procurement of ammunition, missiles, air defence, and ground combat systems produced within the EU. It is part of the European Commission’s ReArm Europe/Readiness 2030 plan, which aims to unlock over €800bn in defence investment across the European Union.
The pre-financing will help Estonia accelerate priority defence investments, strengthen resilience, and modernize its military capabilities in line with shared European goals. SAFE is designed to enable swift, co-ordinated action, improve the ability of European forces to work together, and strengthen Europe’s defence industry, including through joint procurement and closer cross-border co-operation.
Defence and Space Commissioner Andrius Kubilius (pictured) said: “With this first SAFE payment, we are helping Estonia move quickly on key defence investments and strengthen its readiness and resilience. We are moving fast and decisively to help member states on the EU Eastern Flank. SAFE is about enabling Member States to invest faster, procure more effectively together, and reinforce Europe’s defence industrial base.”
This pre-financing payment follows the completion of all required procedural steps and reflects the EU’s commitment to providing timely, practical support through SAFE. Further payments will follow, as agreed milestones and implementation are met.
The SAFE instrument is financed by EU borrowing on the financial markets. This enables competitively priced and attractively structured long-duration loans to requesting Member States. The terms of the SAFE loans benefit from the EU’s strong credit rating. All SAFE loans will be repaid by the beneficiary member states.
