EU to Replace SAFE With New Defense Lending Program

TLDR

The European Union is developing a new defense financing mechanism to replace the SAFE lending initiative, which is expected to be exhausted by spring 2026. The new model aims to ensure uninterrupted weapons procurement and strengthen the bloc’s defense autonomy, with a focus on standardizing weapons and reducing delivery lead times. The final proposals are expected by the end of spring 2026, with the threat from Russia driving the rapid approval of the budget.

The current €150 billion program is expected to be exhausted as early as this spring due to exceptionally high demand from EU member states.

The new financial model is intended to ensure uninterrupted weapons procurement and strengthen the bloc’s defense autonomy.