The largest defence financing mechanism in European Union history is now operational. On 11 February 2026, EU defence ministers approved the first batch of national defence investment plans under the Security Action for Europe (SAFE) programme, releasing €38 billion in loan commitments to eight member states. A second wave of €74 billion for eight more countries was endorsed by the European Commission in late January and awaits final ministerial sign-off.
When fully deployed, SAFE will channel €150 billion in competitively priced, long-maturity loans to EU member states for defence procurement — making it the single largest EU instrument ever dedicated to military capability. For the European defence industry, this is not just a policy statement. It is a purchase order.
How SAFE Works
SAFE is the first pillar of the broader ReArm Europe / Readiness 2030 plan, which aims to unlock over €800 billion in total EU defence spending by the end of the decade. The programme leverages the EU's AAA credit rating to offer member states loans at rates far below what most could secure independently — particularly beneficial for smaller and Eastern European states with higher sovereign borrowing costs.
The mechanism is structured around National Defence Investment Plans (NDIPs). Each participating member state submits a detailed spending plan, which the Commission evaluates against eligibility criteria before recommending approval to the Council.
Eligible investments fall into two categories:
Category 1 covers immediate-need capabilities: ammunition, missiles, artillery, ground combat systems, small drones (NATO Class 1), cyber capabilities, and military mobility infrastructure.
Category 2 covers more complex systems: air and missile defence, maritime capabilities, larger drones (NATO Classes 2-3), strategic enablers (airlift, C4ISTAR, space assets), artificial intelligence, and electronic warfare. Category 2 has stricter eligibility requirements, including the contractor's capacity for independent equipment modification — a provision designed to favour European manufacturers.
A critical constraint: no more than 35% of component costs may originate from outside the EU, EEA-EFTA countries, or Ukraine. This "Buy European" clause is explicitly designed to channel spending into the continental defence industrial base rather than US or Asian suppliers.
Who Gets What
The approved and pending national plans reveal the geographic distribution of Europe's rearmament:
First Wave (Approved 11 February 2026) — €38 Billion
Belgium, Bulgaria, Croatia, Cyprus, Denmark, Portugal, Romania, and Spain. These eight countries were the first to have their NDIPs endorsed by the Commission in mid-January, and received ministerial approval allowing loan agreements and pre-financing payments (up to 15% of the requested amount) to proceed.
Second Wave (Commission-endorsed, awaiting Council) — €74 Billion
Estonia, Finland, Greece, Italy, Latvia, Lithuania, Poland, and Slovakia. The Commission approved these plans in late January. Ministerial approval was expected by mid-February.
Third Wave (Pending Commission evaluation) — ~€34 Billion
Czechia, France, and Hungary have submitted plans totalling approximately €34 billion but are still under Commission review.
Notable individual allocations:
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Poland: €43.7 billion — the largest single SAFE request, reflecting Warsaw's position as Europe's most aggressively rearming state
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Romania: €16.7 billion — a significant commitment for a country with a GDP of roughly €300 billion
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Italy: €14.9 billion — channelling funds toward naval modernisation and air defence
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Lithuania: €6.4 billion — enormous relative to the country's size, signalling the Baltic states' threat perception
Germany did not apply for SAFE funding, reflecting both its access to capital markets at competitive rates and its €100 billion special defence fund established in 2022.
What the Money Will Buy
SAFE-funded procurement spans the full spectrum of modern military equipment, with a clear emphasis on the capabilities that Europe's current threat environment demands:
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Ammunition and missiles — Europe's most acute shortage. Continental production of 155mm artillery shells is being ramped up, but demand still vastly exceeds supply.
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Air and missile defence — Patriot, SAMP/T, IRIS-T, and newer systems. The gap in European air defence coverage has been exposed by the Ukraine conflict.
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Drones and counter-drone systems — From small tactical UAVs to medium-altitude platforms, plus the electronic warfare and kinetic systems needed to defeat enemy drones.
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Cybersecurity and AI — Both as standalone capabilities and as embedded components in all other systems.
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Electronic warfare — Jamming, spectrum management, signals intelligence.
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Space and critical infrastructure — Satellite communications, earth observation, and protection of undersea cables and energy infrastructure.
The "Buy European" clause means this spending will flow primarily to European defence companies — from large primes to the growing ecosystem of defence tech startups tracked on the European Defence Tech Atlas. Companies in air defence, ammunition, drones, cyber, and electronic warfare stand to benefit most directly.
The Joint Procurement Requirement
SAFE is not just about money. It is an attempt to break Europe's historically fragmented defence procurement. The programme requires common procurement — each purchase must involve at least one SAFE beneficiary and another member state (or Ukraine or an EEA-EFTA country) as co-buyers.
This is a structural push toward interoperability and economies of scale. Instead of 27 countries each buying small batches of different equipment from different manufacturers, SAFE incentivises larger, coordinated orders that drive down unit costs and standardise equipment across European militaries.
A temporary exception allows individual-state procurement for critical, urgent assets — a pragmatic acknowledgment that joint procurement processes are slower than the current threat timeline demands.
The participation rules also extend beyond EU borders. Countries with EU Security and Defence Partnerships — including the UK, Norway, Canada, Japan, and South Korea — can participate in joint procurement efforts. Ukraine is explicitly included as both a procurement partner and an eligible supply chain participant.
What This Means for the Defence Industry
SAFE transforms the European defence market in several ways:
Demand certainty. €150 billion in committed government spending, allocated through published national plans, gives defence companies the visibility to invest in production capacity, R&D, and hiring. This is the demand signal the industry has been waiting for.
European preference. The 35% non-EU component cap means European suppliers have a structural advantage. Companies that can deliver complete systems with European supply chains — or those that can help prime contractors meet the threshold — will see increased orders.
Startup opportunity. SAFE's Category 2 explicitly includes AI, electronic warfare, cybersecurity, and autonomous systems — domains where European defence startups are strongest. Companies building innovative solutions in these areas now have a clear path to government customers with funded procurement budgets.
Eastern European growth. Poland's €43.7 billion allocation alone exceeds what many Western European states are requesting. Combined with Romania's €16.7 billion, Lithuania's €6.4 billion, and the other Baltic and CEE allocations, SAFE will accelerate the shift of defence industrial activity eastward. Browse defence companies in Poland, Romania, and the Baltic states on our Atlas.
What This Means for Job Seekers
The connection between €150 billion in defence procurement and the job market is direct. Government orders create production demand. Production demand drives hiring. And the types of systems SAFE prioritises — drones, AI, cyber, electronic warfare — are precisely the domains where Europe faces its most acute workforce shortages.
Defence industry employment in Europe currently exceeds one million direct jobs and four million including the supply chain. With SAFE and related spending targets, projections suggest direct employment needs to reach 1.46 million by 2030.
The countries receiving the largest SAFE allocations will see the biggest hiring surges. Poland, Romania, Lithuania, and the other CEE recipients are already expanding their defence industrial bases. For job seekers willing to relocate — or work remotely on software and cyber — these markets offer less competition and faster career progression than saturated Western European hubs.
Key roles that SAFE-funded programmes will create demand for:
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Procurement and programme managers — managing large government contracts with strict timelines and compliance requirements
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Manufacturing and production engineers — ammunition, drone assembly, electronic systems production
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Systems integrators — connecting new equipment with existing military infrastructure
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Cybersecurity specialists — both as a standalone procurement category and a requirement embedded in all systems
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AI and software engineers — particularly for drone autonomy, intelligence analysis, and electronic warfare
Browse all open defence tech positions or filter by country to find roles near the SAFE spending hubs.
Key Takeaways
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€150 billion — the total SAFE loan facility, the largest EU defence financing instrument ever
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€38 billion approved for 8 countries in the first wave; €74 billion for 8 more pending Council sign-off
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Poland leads with €43.7B, followed by Romania (€16.7B), Italy (€14.9B), Lithuania (€6.4B)
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35% non-EU component cap — a "Buy European" clause that favours continental manufacturers and startups
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Joint procurement required — pushing standardisation and interoperability across European militaries
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First disbursements expected Q1 2026 — pre-financing of up to 15% of each country's allocation
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Direct hiring impact across manufacturing, cyber, AI, systems engineering, and programme management
Europe is rearming, and the jobs are following. Explore 385 defence companies across 30 countries or browse 642 open positions on DefenceJobs.org.