Newsroom
Cyprus has received an initial €177.2 million payment from the European Union through the Security Action for Europe (SAFE) defence funding programme, marking the first tranche of financial support allocated to the country under the scheme.
The amount represents 15 per cent of Cyprus' total SAFE allocation of €1.2 billion and is intended to accelerate defence-related projects, strengthen national preparedness and support the modernisation of military capabilities.
The European Commission said the advance funding will help Cyprus pursue investments that align with shared EU defence priorities. SAFE was created to support coordinated procurement efforts among member states, improve compatibility between European armed forces and strengthen defence manufacturing across the bloc through joint purchasing initiatives and increased cooperation between countries.
SAFE has a total budget of €150 billion and offers loans to EU member states for defence procurement. Funding is primarily directed toward the acquisition of ammunition, missile systems, air-defence equipment and land combat platforms produced within the European Union.
The programme forms part of the European Commission’s ReArm Europe/Readiness 2030 strategy, an initiative designed to encourage more than €800 billion in defence spending across the EU over the coming years.
European Commissioner for Defence and Space Andrius Kubilius said the payment reflects the EU’s commitment to strengthening collective security and defence capabilities. He stated that the funding will allow Cyprus to acquire essential capabilities more quickly while contributing to efforts to build a stronger and more resilient European defence sector.
The Commission said the disbursement was made after all required administrative procedures had been completed. Additional payments are expected once agreed targets are met and approved projects continue to progress.
SAFE is financed through borrowing by the European Union on international financial markets. The mechanism enables member states to access long-term loans on favourable terms, supported by the EU’s strong credit standing. Countries receiving SAFE funding will be responsible for repaying the loans.
