SAFE Credit Agreement worth 15 billion euros between the EU and France (June 2026)

A credit agreement worth approximately €15.09 billion has been signed between the European Union and France under the Security Action for Europe (SAFE) mechanism. The agreement was concluded during Eurosatory 2026, one of Europe’s largest defense industry events, held in Paris, the capital of France.

The credit is intended to support the use of resources allocated to France under SAFE, one of the European Union’s largest defense funding programs in recent years. The agreement is viewed as part of broader efforts to enhance Europe’s defense capacity, strengthen its defense industry, and develop common procurement mechanisms.

The SAFE program was developed as a response to the European Union’s efforts to adapt to the changed security environment following the Russia-Ukraine War. The program took shape amid discussions on the security threat posed by Russia, the ongoing war in Ukraine, and the need for Europe to assume greater responsibility in defense matters.

Adopted by the European Union under its “Defense 2030 Targets,” the SAFE mechanism entered into force on 29 May 2025. Its primary objective is to coordinate defense spending among European countries, support joint procurement projects, and increase the production capacity of the European defense industry.

According to a statement by the European Commission, France has been approved to access up to €15.09 billion in credit under SAFE. Approximately €2.26 billion of this amount will be provided as pre-financing.

The total size of the SAFE program has been set at €150 billion, making France one of the largest beneficiaries of the initiative. European Commission President Ursula von der Leyen announced the agreement during the G7 Summit, describing it as a significant step toward accelerating Europe’s defense investments.

At the signing of the agreement, Andrius Kubilius, European Commission Vice-President for Defense, described the SAFE program as one of the most significant initiatives to strengthen the European defense industry.

Funding under the SAFE program can be used for:

• Ammunition production,
• Missile systems,
• Air defense technologies,
• Cybersecurity infrastructure,
• Military mobility projects,
• Increasing the production capacity of the defense industry.

One of SAFE’s core objectives is to encourage European countries to meet their defense needs primarily through producers within Europe.

The SAFE mechanism is regarded as one of the tools supporting the European Union’s long-standing policy of “strategic autonomy.”

This approach aims to reduce Europe’s dependence on external actors in defense and security matters and to build its own defense capabilities. In particular, demands from the United States for greater burden-sharing in European security and ongoing debates within NATO have accelerated the European Union’s efforts to strengthen its own defense instruments.

Within this context, the SAFE program is not merely a financial mechanism but is also seen as a major step toward European defense integration.

Under SAFE, EU member states as well as Ukraine and countries of the European Economic Area—Norway, Iceland, and Liechtenstein—are eligible to participate in joint defense procurement projects.

These countries can use credits provided by the program to jointly purchase weapons systems and defense equipment. This is intended to reduce costs, accelerate production processes, and establish common European defense standards.

The SAFE mechanism is not limited to EU member states. Candidate countries such as Türkiye, as well as countries like Canada that have defense cooperation agreements with the European Union, may participate in joint procurement projects under specific conditions.

However, a key requirement is that at least 65 percent of the total value of any defense product produced under the program must originate from EU countries, Ukraine, Norway, Iceland, or Liechtenstein. This provision is designed to support the economic development of the European defense industry and ensure that critical technologies are developed within Europe.

Prior to France, similar credit decisions have been made for Belgium, Bulgaria, Denmark, Spain, Croatia, Portugal, Romania, Estonia, Greece, Italy, Latvia, Lithuania, Poland, Slovakia, Finland, the Czech Republic, and the Republic of Cyprus.

This demonstrates that SAFE has evolved into a comprehensive financing mechanism supporting defense investments across Europe.

The €15.09 billion credit agreement signed between the European Union and France is regarded as a key component of Europe’s long-term strategy to enhance its defense capacity. The agreement stands as a concrete example of Europe’s efforts to act more coherently in defense, develop joint production and procurement systems, and adapt to the evolving global security environment. European Union officials have stated that the SAFE program will play a central role in transforming the European defense industry in the coming years.