The European Union on Tuesday approved the Security for Action for Europe (SAFE) Instrument, a €150 billion defence investment plan aimed at strengthening the bloc's military readiness and industrial base amid heightened geopolitical tensions. Backed by 26 of the EU's 27 member states—with Hungary abstaining—the measure will enable the European Commission to raise funds on capital markets to support member states' investments in key defence areas such as missile systems, drones, and strategic enablers. The move, part of the broader ReArm Europe Plan and Readiness 2030 Strategy, includes a strong "buy European" provision, requiring that at least 65 per cent of the value of any funded project come from companies in the EU, the European Economic Area, or Ukraine. British firms may also benefit following the recent UK-EU Security and Defence Partnership. European Commission President Ursula von der Leyen hailed the agreement as "a critical step forward," stressing the need for Europe to "assume a greater share of responsibility" for its own security. SAFE marks the EU's first large-scale defence financing programme, with funds disbursed based on national investment plans and a focus on joint procurement to enhance interoperability. The legislation was fast-tracked without requiring European Parliament approval. Attribution: Amwal Al Ghad English, Reuters Subediting: M. S. Salama
