Proposal for a COUNCIL REGULATION establishing the Security Action for Europe (SAFE) through the reinforcement of European defence industry Instrument
Date: 2025-03-19
Institutions: Directorate-General for Defence Industry and Space, European Commission
Subjects: EU financial instrument, EU investment, European defence policy, European security, arms industry, common security and defence policy, defence expenditure, public investment

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   EUROPEAN COMMISSION  Brussels, 19.3.2025  COM(2025) 122 final 2025/0122 (NLE)  Proposal for a COUNCIL REGULATION establishing the Security Action for Europe (SAFE) through the reinforcement of European defence industry Instrument (Text with EEA relevance)  
 
EXPLANATORY MEMORANDUM 

1. 

• 

CONTEXT OF THE PROPOSAL 

Reasons for and objectives of the proposal 

Russia’s  military  aggression  against  Ukraine  has  marked  the  dramatic  return  of  territorial 
conflict and high-intensity warfare on European soil. This structural change in the European 
security and defence and European geopolitics, has led Member States to rethink their defence 
plans and capacities.  

EU  Heads  of  State  or  Government,  meeting  in  Versailles  on  10  and  11  March  2022, 
committed to “bolster European defence capabilities” in light of Russia’s military aggression 
against  Ukraine.  These  aims  were  reiterated  in  the  Strategic  Compass  for  Security  and 
Defence.  The  Union  has  adopted  two  emergency  instruments  to  face  the  immediate 
consequences  of  Russia’s  war  of  aggression  against  Ukraine,  namely  the  Regulation 
establishing  an  instrument  for  the  reinforcement  of  the  European  defence  industry  through 
common procurement  (EDIRPA)1  and the Regulation  on supporting  ammunition  production 
(ASAP)2. In view of the continuation of Russia’s war of aggression, on 5th March 2023, the 
Commission and High Representative also presented a European Defence Industrial Strategy 
(EDIS)3  which  highlighted  that  Member  States  were  still  buying  predominantly  alone  and 
from  abroad.  This  observation  has  been  confirmed  by  the  report  on  the  future  of  European 
competitiveness,  authored  by  Professor  Mario  Draghi4.  EDIS  consequently  underlined  the 
need  for  Member  States  to  spend  more,  better,  together  and  European  in  order  to  reverse 
negative trends affecting the European Defence  Technological  and  Industrial  Base (EDTIB) 
and effectively enhance the EU’s defence industrial readiness.  

The  same  date,  the  Commission  also  tabled  the  proposal  for  a  European  Defence  Industry 
Programme  (EDIP)  to  start  implementing  EDIS  and  address  the  structural  consequences  of 
Europe’s new security context.  

However,  this  security  context  has  further  drastically  and  brutally  deteriorated  since  early 
2025.  The  EU  and  its  Member  States  now  face  an  intensifying  Russian  aggression  against 
Ukraine  and  a  growing  security  threat  from  Russia.  It  is  also  now  clear  that  this  threat  will 
persist  in  the  foreseeable  future,  considering  that  Russia  has  shifted  to  a war-time  economy 
enabling  a  rapid  scaleup  of  its  military  capabilities  and  replenishment  of  its  stocks.  The 
European  Council  therefore  underlined,  in  its  conclusions  of  6  March  2025,  that  “Russia’s 
war of aggression against Ukraine and its repercussions for European and global security in 
a changing environment constitute an existential challenge for the European Union”.    

At  the  same  time,  the  United  States,  traditionally  a  strong  ally,  is  clear  that  it  believes  it  is 
over-committed  in  Europe  and  needs  to  rebalance,  reducing  its  historical  role  as  a  primary 
security guarantor. 

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Regulation - EU - 2023/2418 - EN - EUR-Lex 
Regulation - 2023/1525 - EN - EUR-Lex 
Joint  Communication  to  the  European  Parliament,  the  Council,  the  European  Economic  and  Social 
Committee and the Committee of Regions: “A  new  European Defence Industrial Strategy: Achieving 
EU readiness through a responsive and resilient European Defence Industry” 
The future of European competitiveness: Report by Mario Draghi, September 2024 

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Despite recent increased defence investment spending by Member States, current investment 
levels  remain  insufficient  to  compensate  past  underinvestment  and  to  meet  rapidly  the 
massive defence products needs to deter autonomously the increasing threat posed by Russia.  

In view of the unprecedented and rapid worsening of its security environment and the threat it 
poses for EU citizens and EU economy, the Union and its Member States must immediately 
and massively scale up their efforts to invest in their industrial capacity, hence ensuring their 
defence  more  autonomously.  In  this  context,  the  Commission  presented  a  5-pillar  ReArm 
Europe Plan to the European Council on 6 March 2025. It aims at addressing the urgency of 
the situation by unlocking up to EUR 800 billion.  

This  proposal  for  a  Regulation  is  one  of  the  pillars  of  this  plan,  aiming  at  mobilising  the 
Union  budget  to  support  and  accelerate  national  investments  through  a  new  financial  EU 
instrument,  the Regulation  establishing  the Security Action For Europe  (SAFE) through the 
reinforcement of the European defence industry Instrument.  

Second,  the  activation  of  the  national  escape  clause  of  the  Stability  and  Growth  Pact  will 
support Member States’ public investments and expenditures in defence.  

Third,  the  mid-term  review  of  the  Cohesion  Policy  will  provide  additional  possibilities  and 
incentives  for  Member  States  to  increase  funding  to  the  defence  sector  in  cohesion  policy 
programmes.  

The fourth and fifth pillars aims at mobilising private capital by accelerating the Savings and 
Investments Union and through the European Investment Bank.  

This plan has been unanimously welcomed by the European Council. 

Moreover,  the  Commission  and  the  High  Representative  have  presented,  together  with  this 
draft Regulation, a White Paper on the future of European defence. It provides a framework 
for the ReArm Europe plan, laying out the case for a once-in-a-generation surge in European 
defence  investment.  It  sets  out  the  necessary  steps  to  rebuild  European  defence,  to  support 
Ukraine, address critical capability shortfalls and establish a strong and competitive defence 
industrial base. 

The magnitude and the speed of the increase of expenditure in defence industrial capabilities 
required from Member States and supported by the ReArm Europe Plan is likely to have, in 
the  immediate  future,  a  major  impact  on  national  public  finances  at  a  moment  where  the 
budgets of several Member States continue to be strained. 

Therefore, the SAFE  Instrument  proposed by the European Commission  to  the Council is  a 
temporary, emergency instrument to allow for Union financial assistance to Member States in 
the form of loans to enable them to carry out the urgent and major public investments in the 
European  Defence  Technological  and  Industrial  Basis  (EDTIB)  which  are  required  by  the 
exceptional  situation.  This  instrument  aims  to  promote  common  procurement,  allowing 
Member States to progress towards increased market efficiency in the defence sector.  

The  instrument  will  provide  up  to  EUR  150  billion  in  loans  to  Member  States  for  defence 
investment, which will allow procurement of defence capabilities in priority areas identified 
by the European Council.  It  will not  only  provide visibility to the Union’s defence industry 
but also enable a rapid increase of its production capacity, improve the timely availability of 
defence  products,  speed  up  the  development  of  new  defence  products  or  the  upgrading  of 

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existing ones. These priority areas are air and missile defence, artillery systems, missiles and 
ammunition,  drones  and  anti-drone  systems,  strategic  enablers  and  critical  infrastructure 
protection, including in relation to space, cyber, artificial intelligence and electronic warfare, 
and military mobility.  

This common procurement approach will benefit the Member States, as they will be able to 
reduce  their  costs,  increase  their  efficiency  in  defence  spending,  as  well  as  to  significantly 
increase the interoperability of their armed forces.  

One  of  the  key  additional  benefits  of  this  initiative  is  that  it  will  enable  Member  States  to 
provide  immediate  military  equipment  to  Ukraine,  which  should  help  Member  States  to 
massively  increase  their  support  to  the  country's  war  efforts.  The  SAFE  Instrument  will 
enable  Member  States  to  decisively  and  collectively  undertake  the  substantial  investments 
necessary to address the current security environment and will incentivise them to do so in a 
collaborative manner. By leveraging and further developing the EDTIB, the SAFE Instrument 
will ensure its long-term competitiveness 

The  SAFE  instrument  should  be  accessible  to  all  Member  States  that  seek  to  significantly 
increase  their  defence  investments  in  the  EDTIB  and  are  committed  to  doing  so  through 
collaborative  efforts.  The  establishment  of  the  SAFE  Instrument  is  a  further  tangible 
expression  of  Union  solidarity,  whereby  the  Member  States  agree  to  support  each  other 
through the Union by making additional financial resources available through loans. 

• 

Consistency with existing policy provisions in the policy area 

The support under the SAFE instrument will be consistent and complementary with existing 
collaborative EU initiatives in the field of defence industrial policy.  

It will complement the EU’s main programme in this policy area, the European Defence Fund 
(EDF).  The  SAFE  instrument  will  also  build  on  the  experience  acquired  in  the  context  of 
other EU programmes, such as EDIRPA or ASAP. The SAFE instrument is fully consistent 
with  the  objectives  outlined  in  EDIS  to  enhance  the  EU’s  defence  industrial  readiness  and 
should  contribute  to  the  achievement  of  its  above-mentioned  targets.  It  should  also  be 
complemented by the EDIP, once adopted by Co-legislators with the necessary priority.  

EDIP would notably provide for voluntary cooperation frameworks such as the Structure for 
European Armament Programmes (SEAP) and European Defence Project of Common Interest 
(EDPCI), which can offer avenues to facilitate and enable the Member States’ collaborative 
efforts sought under the SAFE instrument. Finally, the SAFE instrument is part of the broader 
REARM Europe Plan, unveiled by the European Commission President on 4 March 2025.  

• 

Consistency with other Union policies 

The SAFE Instrument will build on the experience of SURE and the Recovery and Resilience 
Facility,  offering  a  loan-based  mechanism  to  support  Member  States  in  implementing 
investment  plans  aiming  at  supporting  the  Union’s  defence  industry.  By  conditioning  EU 
loans to common procurement and to the implementation of these plans, the SAFE instrument 
will  incentivise  Member  States  to  invest  in  their  defence  manufacturing  capacities,  while 
promoting a coordinated European approach to defence industrial investments. 

The SAFE Instrument will generate synergies with EU defence policy and the implementation 
of  the  Strategic  Compass  for  Security  and  Defence.  As  the  other  defence  industrial  policy 
initiatives,  it  will  be  implemented  in  full  consistency  with  the  EU  Capability  Development 

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Plan (CDP) identifying the defence capability priorities at  EU level,  as well as with the  EU 
Coordinated  Annual  Review  on  Defence  (CARD),  which  inter  alia  identifies  new 
opportunities for defence cooperation.  

Finally, the SAFE Instrument will also complement EU initiatives to support Ukraine, such as 
the  Ukraine  Assistance  Fund,  the  Ukraine  Facility,  the  Ukraine  Support  Instrument  or  the 
Ukraine  Loan  Cooperation  Mechanism.  By  making  available  EUR  150  billion  to  Member 
States for the common procurement of defence products, the Union will reinforce the ability 
of  its  Member  States  to  transfer  more  defence  capabilities  to  Ukraine,  notably  through  the 
immediate and further provision of material from their national stocks.  

2. 

• 

LEGAL BASIS, SUBSIDIARITY AND PROPORTIONALITY 

Legal basis 

The  legal  basis  for  this  instrument  is  Article  122  of  the  Treaty  on  the  Functioning  of  the 
European Union (TFEU).  

The  brutal  deterioration  of  the  Union’s  security  context  since  the  beginning  of  2025  is  a 
sudden  and  exceptional  event  entailing  a  massive  and  potentially  disruptive  impact  on  the 
supply of defence products essential for the defence and security interests of the Union and its 
Member States, which is likely to have a serious impact on the public finances of the Member 
States, calling for collective responses in a spirit of solidarity. Through the SAFE instrument, 
the Council, in a spirit of solidarity between Member States, would decide to provide to the 
Member  States  that  wish  to  make  use  of  it,  a  financial  assistance  mechanism  tailored  to 
address the unprecedented geopolitical context and the related public security challenges that 
justifies  the  intervention  under  Article  122  TFEU  as  an  emergency  instrument.  This 
mechanism will allow Member States to engage quickly in public spending to the benefit of 
the  European  defence  Technological  and  Industrial  Base  (EDTIB)  with  the  objective  to 
mitigate as soon as possible the severe difficulties in the supply of defence products that arise 
from this situation. 

The  organisation  and  management  of  the  loan  scheme  allows  the  Council  to  provide,  on  a 
temporary and ad hoc basis, Union financial assistance, on a proposal from the Commission, 
to  a  Member  State  in  difficulties  or  seriously  threatened  with  severe  difficulties  caused  by 
natural  disasters  or  exceptional  occurrences  beyond  its  control  subject  to  certain  conditions 
such as the exceptional  and unprecedented security context. This legal  base would underpin 
the lending component of the SAFE Instrument.  

Article 122 TFEU is the appropriate legal basis for financial assistance responding to crisis or 
exceptional event and is not confined to crises of a financial or financial stability nature. The 
Council  has  a  broad  margin  of  discretion  for  assessing  whether  it  is  necessary  to  have 
recourse to that instrument in a context of emergency. In the past, it has used this provision to 
provide financial assistance to Member States experiencing sudden and exceptional increases 
in  public  expenditure,  such  as  during  the  COVID-19  pandemic,  where  it  helped  preserve 
employment (SURE Instrument)5. Similarly, the Council is entitled to invoke this provision in 
the  current  exceptional  security  context  to  provide  financial  assistance,  through  the  SAFE 

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Council Regulation (EU) 2020/672 of 19 May 2020 on the establishment of a European instrument for 
temporary support to mitigate unemployment risks in an emergency (SURE) following the COVID-19 
outbreak. 

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instrument, to Member States that need to make urgent and massive investments in the EU's 
defence manufacturing  capacities, through collaborative procurement, hence enhancing  their 
military capabilities.  

• 

Subsidiarity (for non-exclusive competence)  

The planned measures of the present initiative are fully in line with the subsidiarity principle. 
The Union is faced with an emergency situation, which could potentially affect all its Member 
States  and  requires  a  combination  of  actions  at  Union  level  and  at  Member  State  level  to 
rapidly  scale  up  the  EDTIB  and  ensure  thereby  a  sufficient  and  autonomous  production 
capacity  of  defence  products.  This  instrument  provides  a  contribution  at  Union  level  to  the 
urgent  need  for  Member  States  to  address  the  increased  needs  of  public  spending  in  the 
production  of  defence  equipment  from  Member  States  and  Ukraine  and  complement  the 
efforts that Member States will engage at national level. It takes into account the fact that the 
EDTIB remains to a large extent tailored for peacetime, due to the Member States’ policy and 
budgetary  choices  in  the  past  decades  to  allocate,  in  a  different  geopolitical  context,  the 
dividend  of  peace  to  other  societal  uses,  and  the  need  to  allow  them  to  adapt  to  the  drastic 
deterioration of the geopolitical context.  

Moreover, an action at Union level will have the additional value to ensure a ramp-up of the 
EDTIB which is beneficial for all the Member States. Indeed, in light of the urgent need for 
Member States to face current security threats and given the prevailing trend underlined in the 
European Defence Industrial Strategy, there is a systemic risk for the EU that Member States 
substantially  increase  their  defence  investments  in  an  uncoordinated  way  and  mostly  to  the 
benefit  of  non-EU  defence  manufacturers.  Such  an  uncoordinated  approach  would  likely 
result  in  significant  inefficiencies  in  public  spending,  lead  to  a  price  spiral  for  defence 
equipment,  and  potentially  crowding  out  of  Member  States  having  a  limited  purchasing 
power. Furthermore, such an uncoordinated approach would exacerbate the fragmentation of 
the  EDTIB,  severely  undermining  its  long-term  competitiveness.  Therefore,  there  are 
compelling  economic  and  policy  justifications  for  promoting  cooperation  and  common 
procurement among Member States, in line with the goals outlined in EDIS. In this context, 
EU-level action is crucial to ensure solidarity among Member States of and to guarantee their 
access to a competitive and efficient EDTIB.  

The combined effect of a massive level of investment and such an aggregation of demand is 
expected to result in a very substantial defragmentation of the EDTIB and in a very significant 
increase  of  its  manufacturing  capacities.  Such  a  signal  will  indeed  enable  the  EDTIB  to 
trigger a sufficient and proportionate ramp-up. There is currently or in the foreseeable future 
no other instrument at EU level with sufficient financial firepower to trigger such a demand 
signal to industry. 

In  addition,  an  action  at  Union  level  allows  to  introduce  targeted  derogations  to  Directive 
2009/81/EC  on  the  coordination  of  procedures  for  the  award  of  certain  works  contracts, 
supply  contracts  and  service  contracts  by  contracting  authorities  or  entities  in  the  fields  of 
defence and security in order to create the conditions to facilitate and accelerate the common 
procurement of defence procurement involving the financial assistance under this instrument, 
thus contributing to solve the situation of emergency justifying the use of this Instrument.  

• 

Proportionality 

The proposal respects the proportionality principle. It does not go beyond what is necessary to 
achieve the objectives sought by the instrument. 

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The  derogations  to  the  Financial  Regulation,  to  Directive  2006/112/EEC  and  to  Directive 
2009/81/CE  are  strictly  connected  with  the  use  of  the  financial  assistance  provided  by  this 
instrument and will be limited to the period under which this instrument deploys its effects.  

• 

Choice of the instrument 

This  act  takes  the  form  of  a  Regulation  because  it  creates  a  new  specific  and  temporary 
instrument that could be used by any Member State and has to be binding in its entirety and 
directly applicable in  all Member States. The form  of a Regulation  has been used in  all the 
acts involving Article 122 TFEU.  

3. 

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RESULTS 
CONSULTATIONS AND IMPACT ASSESSMENTS 

EX-POST 

EVALUATIONS, 

OF 

STAKEHOLDER 

Ex-post evaluations/fitness checks of existing legislation 

Due to the urgency to prepare the proposal so that it can be adopted in a timely manner by the 
Council, a stakeholder consultation could not be carried out.  

• 

Stakeholder consultations 

Due to the urgency to prepare the proposal so that it can be adopted in a timely manner by the 
Council, a stakeholder consultation could not be carried out.  

• 

Impact assessment 

Due to the urgent nature of the proposal, no impact assessment was carried out. 

• 

Fundamental rights 

Right  to  life,  liberty  and  security  are  enshrined  in  Article  2  and  6  of  the  Charter  of 
Fundamental rights. Public security is also an overriding reason of public interest.  

Moreover,  enhancing  the  capacity  of  the  Member  States  to  defend  the  integrity  of  their 
territory  and  the  security  of  EU  citizens  contributes  to  safeguarding  their  most  fundamental 
rights. 

The Regulation ensures a right balance between the protection of these fundamental rights and 
of the overriding public objective of public security and other fundamental rights such as the 
freedom to conduct a business and the freedom of contract which are provided for by Article 
16 of the Charter of Fundamental Rights of the European Union. In particular, the Regulation 
provides  for  the  possibility  to  substantially  modify  an  existing  framework  agreement  under 
Directive  2009/81/EC.  However,  such  a  possibility  is  conditioned  to  the  prior  agreement  of 
the undertaking with which the framework agreement concerned has been concluded.  

4. 

BUDGETARY IMPLICATIONS 

The  Commission  should  be  able  to  contract  borrowings  on  the  financial  markets  in 
accordance with the diversified funding strategy. 

The  SAFE  instrument  will  take  the  form  of  a  lending  scheme  of  up  to  EUR  150  billion 
underpinned by a guarantee from the Union under Article 2(3) of the MFF Regulation, while 
ensuring that the contingent liability for the Union arising from the instrument is compatible 
with the Union budget constraints, in line with Article 3(1) of the MFF Regulation and with 
Council Decision 2020/2053. 

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This Regulation provides for safeguards to ensure the financial solidity of the scheme: 

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A rigorous and conservative approach to financial management;  

A  construction  of  the  portfolio  of  loans  that  limits  concentration  risk,  annual 
exposure  and  excessive  exposure  to  individual  Member  States  whilst  ensuring 
sufficient resources could be granted to Member States most in need; and  

Possibilities to roll over debt. 

Given the temporary nature of the financing scheme of the SAFE instrument, the requests for 
the last instalment for loans shall be limited to 31 December 2030. 

5. 

• 

OTHER ELEMENTS 

Detailed explanation of the specific provisions of the proposal 

Article 1 of the proposed Council Regulation  provides for the  establishment of the Security 
Action  For  Europe  (SAFE)  through  the  Reinforcement  of  European  Defence  Industry 
instrument. This instrument would be ad hoc and temporary in view of its legal basis. It would 
provide  financial  assistance  under  Article  223  of  the  Financial  Regulation  in  support  of 
Member States confronted with the need to carry out urgent and major public investments to 
support the European defence industry. 

Article 2 of the proposed Regulation provides for definitions to be applied for the purposes of 
the Regulation, in particular definitions relating to defence products or common procurement. 

Article  3  of  the  proposed  Regulation  stresses  the  complementary  nature  of  the  SAFE 
instrument. It should complement efforts undertaken by Member States at national level and 
should enable Member States to accelerate these investments, in a coordinated manner. 

Article 4 of the proposed Regulation lays down the conditions for activating the instrument. 
Member  States  may  request  financial  assistance  where  they  plan  to  carry  out  activities, 
expenditures  and  measures  through  common  procurement  with  the  aim  of  supporting  the 
adaptation of the EDTIB to the structural changes.  

Article 5 of the proposed Regulation determines that financial assistance under the proposed 
SAFE instrument will take the form of a loan granted to the Member State concerned.  

Article  6  of  the  proposed  Regulation  establishes  the  maximum  amount  of  Union  financial 
assistance that can be provided under the SAFE instrument and specifies a date up to which 
amounts  of  loans  can  be  approved  by  the  Commission  based  on  presentation  of  a  plan.  It 
concerns an amount of up to EUR 150 billion. 

Article 7 of the proposed Regulation sets out the content and the process for the submission of 
the  European  Defence  Industry  Investment  Plan  that  Member  States  wishing  to  receive 
financial assistance under the SAFE instrument will have to submit to the Commission. The 
Commission  will  apply  a three-stage process.  As a first  step, the Commission  will launch a 
call for expressions of interest, requesting interested Member States to provide for a target for 
the  financial  assistance  requested  as  well  as  an  indicative  maximum  and  minimum  loan 
amount.  The  deadline  for  submission  for  expressions  of  interests  should  not  exceed  two 
months as of the entry into force of the Regulation. As a second step, the Commission notifies 
interested  Member  States,  within  two  weeks  following  the  end  of  the  submission  deadline, 
about the tentative allocations of the loan amounts available to each Member State. As a third 

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step, interested Member States submit their European defence industry investment plan within 
six months as of the entry into force of the Regulation.  

The  European  Defence  Industry  Investment  Plan  will  notably  include  a  description  of  the 
activities,  expenditures  and  measures  planned  by  this  Member  State  for  which  it  requires 
financial  assistance  and  notably  a  description  of  the  defence  product  needs  related  to 
investment areas outlined in the conclusions of the European Council of 6 March 2025 as well 
as measures this Member State intends to implement to comply with the conditions included 
in the Regulation and obligations under EU law. 

Article 8 of the proposed Regulation establishes the procedure for granting swiftly financial 
assistance to Member States. Following a request by a Member State accompanied by a duly 
substantiated European Defence Industry Investment Plan, the Commission would assess this 
plan to verify that it fulfils the conditions required under this Regulation. Elements such as the 
amount,  the  amount  of  the  potential  pre-financing,  the  assessment  of  the  European  Defence 
Industry  Investment  Plan should be included in  the Commission  Implementing Decision.  In 
its  Implementing  Decision,  the  Commission  shall  give  a  sufficient  explanation  of  its 
assessment, in particular were it to decide not to grant financial assistance to a Member State. 
This  article  also  sets  out  the  conditions  for  the  Commission  to  launch  a  new  call  of 
expressions of interest before 31 December 2026 in case amounts remain available. 

Articles 9 to 13 of the proposed Regulation contain the procedural rules for the disbursement 
and implementation of the loan support under the SAFE instrument. More specifically, they 
deal  with  rules  on  the  operational  arrangements,  the  borrowing  and  lending  operations,  the 
pre-financing,  the  rules  on  payment  and  suspension  of  loans  and  the  prudential  rules 
applicable to the portfolio of loans under the instrument. 

Articles  14  and  15  of  the  proposed  Regulation  lay  down  rules  on  controls  and  audits  and 
reporting.   

Article 16 of the proposed Regulation sets out the eligibility conditions a Member State which 
benefits  from  the  financial  assistance  under  the  SAFE  Instrument  shall  comply  with  when 
carrying  out  a  common  procurement.  These  notably  concern  participation  conditions  for 
contractors and subcontractors involved in the common procurement supported by the SAFE 
instrument  as  well  as  specific  conditions  related  to  the  products  object  of  the  common 
procurement supported by the SAFE instrument.  

Article  17  of  the  proposed  Regulation  lays  down  the  rules  under  which  contractors  or 
subcontractors of third countries other than EEA EFTA States and Ukraine can participate to 
common  procurements  supported  by  the  SAFE  instrument.  The  Article  provides  for  a 
graduated  approach  ensuring  a  fair  balance  as  regards  potential  third  country  commitments 
towards  the  Union,  including  their  financial  contributions,  and  the  benefits  of  the  third 
country  concerned,  in  particular  benefits  for  its  industry  participating  in  the  common 
procurement as contractors or subcontractor involved in the common procurement.  

Articles  18  and  19  of  the  proposed  Regulation  lay  down  rules  aiming  at  facilitating  and 
accelerating  common  procurement  procedures.  More  specifically,  they  include  a  derogation 
from  Directive  2009/81/EC  in  order  to  allow  for  the  substantial  modification  of  existing 
framework  agreements  for  the  benefit  of  a  Member  State  which  benefits  from  financial 
assistance  under  the  SAFE  instrument  and  a  clarification  that  a  common  procurement 
involving at least one Member State which benefits from financial assistance under the SAFE 

EN 

8 

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instrument could be awarded through a negotiated procedure without a prior publication of a 
contract notice. 

Article  20  of  the  proposed  Regulation  provides  for  a  temporary  VAT  exemption  on 
importation  and  supply  of  defence  products  subject  to  common  procurement  under  this 
instrument. 

Article 21 of the proposed Regulation sets out the rules applicable to classified and sensitive 
information which may be involved in the implementation of the Regulation. 

EN 

9 

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2025/0122 (NLE) 

Proposal for a 

COUNCIL REGULATION 

establishing the Security Action for Europe (SAFE) through the reinforcement of 
European defence industry Instrument 

(Text with EEA relevance) 

THE COUNCIL OF THE EUROPEAN UNION, 

Having  regard  to  the  Treaty  on  the  Functioning  of  the  European  Union,  and  in  particular 
Article 122 thereof, 

Having regard to the proposal from the European Commission, 

Whereas: 

(1) 

(2) 

(3) 

(4) 

6 
7 
8 

9 

Russia’s  war  of  aggression  against  Ukraine  and  its  repercussions  for  European  and 
global security constitute an existential challenge for the European Union. 

In  response  to  that  challenge,  in  its  conclusions  of  6  March  2025,  the  European 
Council,  recalling  the  Versailles  Declaration  of  11  March  20226  and  the  Strategic 
Compass for Security and Defence adopted on 21 March 20227, stressed that Europe 
must  become  more  sovereign,  more  responsible  for  its  own  defence  and  better 
equipped to act and deal autonomously to cope with immediate and future challenges 
and  threats.  In  that  extraordinary  European  Council  meeting,  all  Member  States 
committed to reinforce their overall defence readiness, reduce strategic dependencies, 
address critical capability gaps and strengthen the European defence technological and 
industrial base accordingly across the Union so that it is in a position to better supply 
equipment in the quantities and at the accelerated pace needed. 

On  18  May  2022,  the  Commission  and  the  High  Representative  of  the  Union  for 
Foreign Affairs and Security Policy presented a Joint Communication8 on the Defence 
Investment  Gaps  Analysis  and  Way  Forward,  highlighting  the  existence,  within  the 
Union, of defence financial, industrial and capability gaps. 

On 20 July  2023 the European Parliament  and the Council adopted Regulation  (EU) 
2023/15259 supporting ammunition production (ASAP), aimed at urgently supporting 
the  ramp-up  of  manufacturing  capacities  of  the  European  Union  defence  industry, 

https://www.consilium.europa.eu/media/54773/20220311-versailles-declaration-en.pdf 
https://data.consilium.europa.eu/doc/document/ST-7371-2022-INIT/en/pdf 
Joint  Communication  to  the  European  Parliament,  the  European  Council,  the  Council,  the  European 
Economic and Social Committee and the  Committee of the  Regions on the Defence Investment Gaps 
Analysis and Way Forward, JOIN(2022) 24 final, 18 May 2022. 
Regulation  (EU)  2023/1525  of  the  European  Parliament  and  of  the  Council  of  20  July  2023  on 
7,  ELI: 
supporting 
http://data.europa.eu/eli/reg/2023/1525/oj). 

ammunition 

production 

24.7.2023, 

(OJ  L 

(ASAP) 

185, 

p. 

EN 

10 

  EN 

 
(5) 

(6) 

(7) 

(8) 

(9) 

10 

secure supply chains, facilitate efficient procurement procedures, address shortfalls in 
production capacities and promote investments. 

On  18  October  2023,  the  European  Parliament  and  the  Council  adopted  Regulation 
(EU) 2023/2418 on establishing an instrument for the reinforcement of the European 
defence  industry  through  common  Procurement  (EDIRPA)10,  aimed  at  supporting 
collaboration between Member States in the procurement phase to fill the most urgent 
and  critical  gaps,  especially  those  created  by  the  response  to  Russia’s  war  of 
aggression against Ukraine, in a collaborative way. 

On  14  and  15  December  2023,  the  European  Council,  in  its  conclusions,  having 
considered work carried out to implement the Versailles Declaration and the Strategic 
Compass for Security and Defence, underlined that more needs to be done to fulfil the 
Union’s objectives of increasing defence readiness. In order to achieve such readiness 
and defend the Union, a strong defence industry was considered to be a pre-requisite, 
requiring  the  European  defence  industry  to  become  more  resilient,  innovative  and 
competitive. 

On 5 March 2024, the European Commission adopted a proposal for a Regulation of 
the  European  Parliament  and  of  the  Council  establishing  the  European  Defence 
Industry  Programme  and  a  framework  of  measures  to  ensure  the  timely  availability 
and supply of defence products (‘EDIP’) in order to build on the experience acquired 
in the context of EDIRPA and ASAP and extend their logic in a more long-term and 
structured perspective. 

However,  since  the  beginning  of  2025,  there  has  been  a  stark  deterioration  of  the 
Union’s  security  context,  linked  not  only  to  Russia’s  persistent  threat  and  its 
intensified shift to a war-time economy and to the evolution of the war in Ukraine, but 
also to uncertainties stemming from the advent of a geopolitical situation in which the 
Union  has  to  markedly  step  up  its  efforts  to  ensure  its  defence  autonomously.  That 
recent  deterioration  increases  the  level  of  threat  to  the  European  Union  and  requires 
that Member States launch, as a matter of emergency, massive public expenditures to 
scale  up  the  European  Defence  Technological  and  Industrial  Base  (EDTIB).  As  a 
consequence,  it  also  increases  the  need  to  accelerate,  in  a  spirit  of  solidarity,  the 
making  available  of  Union  support  to  those  Member  States  which  are  likely  to  be 
threatened by serious difficulties due to the massive public investments needed, which 
may have an impact  on  their economic situation.  Due to  the time needed to  develop 
products and ensure the ramp-up of the corresponding industrial production capacity, 
it becomes vital for the Union to start as soon as possible the support to these Member 
States so that they can very rapidly place orders, increase predictability for the defence 
industrial  sector,  incentivising  it  to  invest  in  the  very  short  term  for  the  purpose  of 
strengthening production capacities. 

The  magnitude  and  the  speed  of  the  increase  of  expenditure  in  defence  industrial 
capabilities required from the Member States is likely to have a major impact on their 
public finances at a moment where the budgets of several Member States continue to 
be strained. 

Regulation  (EU)  2023/2418  of  the  European  Parliament  and  of  the  Council  of  18  October  2023  on 
establishing  an  instrument  for  the  reinforcement  of  the  European  defence  industry  through  common 
procurement (EDIRPA), OJ L, 2023/2418, 26.10.2023. 

EN 

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(10)  This exceptional situation, not caused by the Member States and beyond their control, 
justifies  that  the  Union  takes  urgent  measures  to  make  available  to  those  of  the 
Member  States  that  want  to  invest  in  defence  industrial  production  a  temporary 
instrument  that  would  provide  them  financial  assistance  in  the  form  of  the  Security 
Action For Europe Instrument (‘the SAFE instrument’). 

(11)  The  SAFE  instrument  should  enable  urgent  and  major  public  investments  in  the 
European  defence  industry  aiming  at  a  rapid  increase  of  its  production  capacity, 
improvement  of  the  timely  availability  of  defence  products  and  speeding-up  and 
adjustment to structural changes. As this Regulation is an exceptional and temporary 
response to an urgent and existential challenge, the financial assistance provided under 
it should only be made available for the purposes of addressing the adverse economic 
consequences  of  the  deteriorating  security  situation  and  the  immediate  procurement 
needs of Member States contributing  to  increased defence industrial  readiness of the 
EDTIB. This Instrument should be part of an overall effort at national and Union level 
to  devote  more  resources  for  defence  industrial  investments  to  remedy  the  crisis 
situation  arising  from  the  current  security  threats.  Other  means  of  action  should  be 
engaged in parallel at Union and national level to accompany that effort, such as the 
activation of the existing flexibility within the framework of the Stability and Growth 
Pact. 

(12)  The  financial  assistance  under  the  SAFE  instrument  should  be  implemented  by 
Member  States  in  a  manner  that  is  consistent  with  the  defence  capability  priorities 
commonly  agreed  by  Member  States  within  the  framework  of  the  Common  Foreign 
and Security Policy (CFSP), the Member States’ cooperation within the framework of 
the  Permanent  Structured  Cooperation  established  by  Council  Decision  (CFSP) 
2017/231511, the European Defence Agency’s (EDA) initiatives and projects, and the 
Union’s civil and military assistance to Ukraine. When implementing this Regulation, 
the Member States should duly take into account the relevant activities carried out by 
the  North  Atlantic  Treaty  Organisation  (NATO)  and  other  partners  where  such 
activities serve the Union's security and defence interests. 

(13)  Member  States  should  be  able  to  use  the  financial  assistance  under  the  SAFE 
instrument in synergy with other existing and future Union programmes, in particular 
to co-finance specific actions. In parallel,  Union programmes supporting cooperation 
in  the  field  of  defence  procurement  or  aiming  more  generally  at  supporting  the 
competitiveness  of  the  EDTIB  might  specifically  provide  for  an  additional  Union 
support  to  common  procurement  benefitting  from  the  financial  assistance  under  the 
SAFE  instrument  or  to  economic  operators  involved  in  such  a  procurement  to 
stimulate  corresponding  industrial  ramp-up  and  further  reinforce  the  effects  of  the 
instrument on the EDTIB. 

(14) 

In order to reduce the administrative burden for Member States, it should be possible 
for the Commission to consider, in the framework of relevant programmes and notably 
those supporting the cooperation in the field of common procurement, the information 
provided  in  the  framework  of  this  Regulation,  and  notably  for  the  purpose  of  the 
reporting of the implementation of the financial assistance, to simplify the conditions 
of the application for financial support. 

11 

Council  Decision  (CFSP)  2017/2315  of  11  December  2017  establishing  permanent  structured 
cooperation (PESCO) and determining the list of participating Member States (OJ L 331, 14.12.2017, p. 
57, ELI: http://data.europa.eu/eli/dec/2017/2315/oj). 

EN 

12 

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(15)  Lack  of  cooperation  between  Member  States  has  led  to  inefficiencies  and  a 
multiplication of defence systems of the same kind within the Union, undermining the 
objective  of  protection  of  the  Union  territory  pursued  by  the  corresponding  national 
investments  while  also  resulting  in  fragmentation  and  sub-scale  operations  of 
significant  parts of the EDTIB. To address  that situation, beneficiary Member States 
should  use  the  financial  assistance  provided  under  this  Regulation  to  carry  out 
common  procurements.  The  eligible  activities,  expenditures  and  measures  financed 
through  defence  common  procurement  should  relate  to  the  following  priority  areas 
identified by the European Council,  taking into account  the lessons learned from  the 
war  in  Ukraine,  in  accordance  with  the  work  already  done  in  the  framework  of  the 
European Defence Agency (‘EDA’) and in full coherence with NATO: air and missile 
defence,  artillery  systems,  including  deep  precision  strike  capabilities,  missiles  and 
ammunition, drones and anti-drone systems, strategic enablers, including in relation to 
space  and  critical  infrastructure  protection,  military  mobility,  cyber,  artificial 
intelligence  and  electronic  warfare.  Those  common  procurements  should  aim  at 
speeding up the adjustment to structural changes of the production capacity of defence 
products, incentivising cooperation in the procurement phase, supporting the increase 
of  production  capacity,  as  well  as  development  and  acquisition  of  the  related 
infrastructure, equipment and logistic services. 

(16) 

(17) 

In order to urgently reinforce the Union industrial base in an efficient and autonomous 
manner,  in  the  light  of  the  recent  evolution  of  the  geopolitical  situation  and  the 
exceptional  threat  to  the  security  of  the  Union  and  the  Member  States,  and  thus 
increase  the  efficiency  and  added  value  to  the  financial  assistance  granted  under  the 
SAFE instrument, this Regulation should establish eligibility conditions for the use of 
the financial assistance by Member States. Contractors and subcontractors involved in 
the  common  procurement  under  this  instrument  should  therefore  be  established  and 
have  their  executive  management  structures  in  the  Union,  in  EFTA  members  of  the 
EEA  (‘EEA  EFTA  States’)  or  in  Ukraine,  and  use  for  the  purposes  of  the  common 
procurement  infrastructure, facilities, assets or resources located on the territory of  a 
Member State, an EEA EFTA State or Ukraine. In order to ensure that contractors and 
subcontractors  involved  in  the  common  procurement  do  not  contravene  the  security 
and defence interests of the Union and its Member States they should not be controlled 
by  third  countries  or  third  country  entities.  In  that  context,  control  should  be 
understood to be the ability to exercise a decisive influence on a legal entity directly, 
or indirectly through one or more intermediate legal entities. 

In certain circumstances, it should be possible to derogate from the principle that legal 
entities  involved  in  a  common  procurement  use  infrastructure,  facilities,  assets  or 
resources located on the territory of a Member State, an EEA EFTA State or Ukraine, 
and  are  not  subject  to  control  by  third  countries  or  third-country  entities.  In  that 
context, a legal entity established in the Union, EEA EFTA State or in Ukraine using 
infrastructure, facilities, assets or resources located outside the territory of a Member 
State,  EEA  EFTA  State  or  Ukraine,  and/or  controlled  by  a  third  country  or  a  third 
country entity may participate if strict conditions are fulfilled relating to  the security 
and  defence  interests  of  the  Union  and  its  Member  States,  as  established  in  the 
framework of the Common Foreign and Security Policy (CFSP) pursuant to Title V of 
the Treaty on European Union (TEU). 

(18)  Legal entities established in the Union, EEA EFTA States or Ukraine and controlled 
by a third country which is not Ukraine nor an EEA EFTA State (‘other third country’) 
or another third-country entity, where allowed, should be eligible to participate in the 

EN 

13 

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common  procurement  if  they  have  been  subject  to  screening  within  the  meaning  of 
Regulation  (EU)  2019/452  and,  where  necessary,  to  appropriate  mitigation  measures 
or if guarantees  approved in accordance with the national procedures of the Member 
State, EEA EFTA State or Ukraine in which they are established are made available to 
the Commission. Such guarantees should only be issued provided that strict conditions 
relating  to  the security  and defence interests of the Union and its  Member States,  as 
established in the framework of the CFSP pursuant to Title V of the TEU, are fulfilled. 

(19) 

In  order  to  ensure  the  timely  availability  and  supply  of  defence  products  from  the 
EDTIB  and  to  accelerate  its  adjustment  to  structural  change  and  thus  reinforce  the 
efficiency  of  the  financial  assistance  granted,  it  is  important  to  set  minimum 
conditions  related  to  the  value  generated  within  the  Union.  Therefore,  common 
procurement contracts should contain a requirement  that the costs of the components 
originating in the Union, EEA EFTA States or Ukraine are not lower than 65% of the 
estimated costs of the end-product. 

(20)  For certain defence product, whose underlying technologies are not widely available in 
the  Union,  and  which  may  be  difficult  to  substitute  at  a  large  scale,  additional 
conditions should be required to ensure Member States’ armed forces freedom related 
to these products without limitations imposed by third countries. Where such products 
are  subject  to  restrictions,  contractors  should  have  the  legal  ability,  without  any 
restriction from a third country or a third country entity, to replace those components 
causing the restrictions with components of EU origin that are free of those restrictions 
as well as to decide on the definition and evolution of the product concerned. 

(21)  Eligibility  conditions  of the  instrument  pursue  the  objective  of  immediately  ramping 
up the manufacturing capacities of the Union defence industry, while allowing for the 
necessary flexibility taking into consideration the internationalisation of supply chains 
for relevant products and technologies. In addition to Ukraine and EFTA EEA States, 
the  SAFE  instrument  should  also  provide  for  the  possibility  for  acceding  countries, 
candidate countries and potential candidates, as well as third countries with whom the 
Union has entered into a Security and Defence Partnership (Non-Binding Instrument, 
NBI), to participate in common procurements under the SAFE instrument. Bilateral or 
multilateral agreements between the Union and one or more of those countries should 
also enable the possible participation of contractors and subcontractors established in 
the  respective  countries  in  common  procurements  under  the  SAFE  instrument, 
according to terms and conditions to be defined in those agreements. 

(22)  Members  States  wishing  to  obtain  financial  assistance  under  the  SAFE  instrument 
should  submit  a  request  to  the  Commission  accompanied  by  a  European  defence 
industry  investment  plan.  To  facilitate  the  preparation  of  plans,  the  Commission  and 
Member  States  should  engage  in  exchanges  with  a  view  of  identifying  tentative 
allocations of the loan amounts. The Commission should assess all requests submitted 
by  the  Member  States.  When  assessing  national  plans,  the  Commission  should  call 
upon  the  expertise  of  EDA  or  the  EU  Military  Staff,  where  appropriate.  The 
Commission  should  allocate  the  loan  amounts  to  the  Member  States  concerned  by 
applying the principles of equal treatment, solidarity, proportionality and transparency, 
in particular if the sum of requested loan amounts exceeds the total maximum amount 
of financial assistance available under the SAFE instrument. Loans should be allocated 
among  the  Member  States  which  apply  in  accordance  with  the  principles  of  equal 
treatment, solidarity, proportionality and transparency. The European defence industry 
investment  plans  should  describe  measures  to  strengthen  the  resilience  of  the 

EN 

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(23) 

(24) 

European  defence  industrial  sector,  notably  by  facilitating  the  access  to  the  defence 
market for SMEs, mid-caps and new defence players. 

In order to facilitate the implementation of the European defence industry investment 
plan  the  Commission  and  each  Member  State  concerned  should  enter  into  an 
operational  arrangement  with  details  concerning  the  disbursement  of  the  financial 
assistance, including a tentative schedule of disbursement, and sign a loan agreement 
with the detailed terms of the loan support under the SAFE instrument. Pre-financing 
of 15 percent  should be  provided to  allow a  rapid start  of the implementation of the 
activities, expenditure and measures under the SAFE instrument. 

It  is  appropriate  to  organise  the  financial  assistance  under  the  diversified  funding 
strategy  provided  for  in  Article  224  of  the  Financial  Regulation  (Regulation  (EU, 
Euratom)  2024/2509)  and  established  single  funding  method,  which  is  expected  to 
enhance the liquidity of Union bonds and the attractiveness and cost-effectiveness of 
Union  issuances.  For  prudential  reasons  related  to  the  management  of  the  loan 
portfolio,  the  share  of  loans  granted  to  the  three  Member  States  representing  the 
largest  share  of  the  loans  granted  should  not  exceed  60  per  cent  of  the  maximum 
amount of financial assistance under the Instrument. 

(25)  Common  procurements  should  involve  at  least  two  participating  countries  that  are 
Member States, EEA EFTA States or Ukraine, out of which at least one  should be a 
Member  State  benefiting  from  loan  support  under  the  SAFE  instrument.  In  addition, 
acceding countries, other candidate countries and potential candidates, and other third 
countries with whom the Union has entered a Security and Defence Partnership (NBI) 
should be allowed to participate in common procurements made with a Member State 
supported with  the  financial assistance under the  SAFE instrument.  The inclusion of 
EEA EFTA States and Ukraine among the countries that may make up the minimum 
required  number  for  a  common  procurement  is  justified  respectively  by  those 
countries’ close partnership with the Union in industrial defence production and by the 
fact that Ukraine is directly faced with Russia’s ongoing war of aggression. Member 
States  are  also  encouraged  to  further  support  Ukraine  with  the  equipment  procured 
with  the financial assistance of the SAFE instrument The participation  of these third 
countries  to  common  procurements  awarded  to  the  EDTIB  or  the  Defence  and 
Technology  Industrial  Base  of  Ukraine  or  of  EEA  EFTA  States  should  increase  the 
level  of  aggregation  of  demand  necessary  to  obtain  a  scale-up  of  industrial  capacity 
and  provide  support  to  the  interoperability  of  systems  and  products  deployed  by  the 
Union’s  closest  partners  in  this  area  while  potentially  allowing  the  Member  States 
which participate in these those procurements to obtain better prices. 

(26)  Directive  2009/81/EC  of  the  European  Parliament  and  of  the  Council  sets  out  a 
legislative framework on the coordination of procurement procedures for the award of 
contracts  in  the  fields  of  defence  and  security,  taking  into  account  the  security 
requirements  of  Member  States  and  the  obligations  arising  from  the  Treaty.  That 
Directive sets out specific rules applicable in cases of urgency resulting from a crisis, 
such  as  shortening  periods  for  the  receipt  of  tenders  and  the  possibility  to  use  the 
negotiated  procedure  without  prior  publication  of  a  contract  notice.  In  order  to 
reinforce the efficiency of the SAFE instrument to address, in a spirit of solidarity, the 
situation  of  emergency  arising  from  the  evolution  of  the  geopolitical  situation,  it  is 
necessary that massive investments in the EDTIB are launched as soon as possible. 

(27)  For that purpose, the award of the contracts based on common procurements involving 
at  least  one  Member  State  supported  by  the  financial  assistance  under  the  SAFE 

EN 

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instrument  should  be  facilitated.  Therefore,  Member  States  carrying  out  common 
procurements  using  the  assistance  provided  under  the  SAFE  instrument  should  be 
deemed to be in a situation of urgency resulting from a crisis, which justifies the use of 
a  negotiated  procedure  without  publication  of  a  contract  notice  as  provided  for  in 
Directive  2009/81/EC.  Moreover,  in  order  to  safeguard  the  security  interests  of  the 
Member  States  which  participate  in  common  procurements  supported  by  the  SAFE 
instrument,  it  is  also  necessary  to  provide  for  the  possibility  of  opening  an  existing 
framework  agreement  or  contract  to  contracting  authorities  of  Member  States  that 
were not  originally parties  to  that  agreement,  even though  the latter had  not  initially 
provided for such a possibility, on condition that the prior consent of the undertaking 
which concluded the framework agreement is obtained. 

(28)  This instrument aims at contributing to an overriding interest of public security which 
consists in  accompanying the financial  efforts of the Member States to  ensure, via a 
scale-up of the EDTIB, a timely availability and supply of defence products that will 
allow the Member States to be prepared for any kind of aggression. Through the use of 
eligibility  conditions,  it  aims  to  support  the  competitiveness  and  the  industrial 
readiness of the EDTIB which are necessary to improve the capacity of the Member 
States to defend the territory of the Union and of its Member States in an efficient and 
autonomous manner.  It  also  pursues an ancillary objective of increasing,  through the 
use  of  common  procurements,  the  level  of  interoperability  of  defence  products.  To 
accompany  these  efforts,  it  is  appropriate,  in  a  spirit  of  solidarity  and  in  order  to 
ensure the financial sustainability of the effort that is necessary to address the severe 
difficulties in the availability of defence products, to take measures to avoid having to 
finance taxes on these expenditures upfront. Defence products acquired under common 
procurements  involving  the  contribution  of  this  instrument  should  therefore  be 
exempted  from  the  value  added  tax  (VAT),  by  the  introduction  of  a  temporary 
exemption from VAT under Directive 2006/122/CEE. This exemption should limited 
in  time  and  only  apply  for  the  duration  of  the  contracts  resulting  from  common 
procurements under the SAFE instrument. 

(29)  The Union remains fully committed to international solidarity. Any measures deemed 
necessary taken under this Regulation, including those necessary to prevent or relieve 
critical  shortages,  should  be  implemented  in  a  manner  that  is  targeted,  transparent, 
proportionate, temporary and consistent with WTO obligations. 

(30) 

It  should  be  possible  for  the  Commission  and  Member  States  to  engage  in 
communication activities to ensure the visibility of Union funding and, as appropriate, 
to ensure that support under the SAFE instrument is communicated and acknowledged 
through a funding statement. 

(31)  This  Regulation  is  without  prejudice  to  each  Member  State  having  the  sole 
responsibility  for  its  national  security,  as  provided  for  in  Article  4(2)  TEU,  and  the 
right of each Member State to protect its essential security interests in accordance with 
Article 346 TFEU. 

(32) 

In order to allow for the implementation of this Regulation to start as soon as possible, 
with a view to reaching its objectives, it should enter into force as a matter of urgency, 

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HAS ADOPTED THIS REGULATION: 

Article 1  
Subject matter and scope 

the 
This  Regulation  establishes 
Reinforcement of European Defence  Industry Instrument (the ‘SAFE instrument’) providing 
financial  assistance  to  Member  States  allowing  them  to  carry  out  urgent  and  major  public 
investments in support of the European defence industry.  

the  Security  Action  For  Europe  (SAFE) 

through 

This  Regulation  sets  out  the conditions  and procedures  under which  the  financial assistance 
under the SAFE instrument shall be provided to and implemented by the Member States and 
lays  down  the  rules  on  simplified  and  accelerated  common  procurement  procedures  for  the 
acquisition  of  defence  products  and  other  products  for  defence  purpose  belonging  to  the 
following categories:  

• 

• 

Category one: ammunition and missiles; artillery systems; small drones (NATO class 
1)  and  related  anti-drone  systems;  critical  infrastructure  protection;  cyber  and 
military mobility. 

Category two: air and missile defence; drones other than small drones (NATO class 2 
and  3)  and  related  anti-drone  systems;  strategic  enablers;  space  assets  protection; 
artificial intelligence and electronic warfare. 

Article 2 
Definitions 

For the purposes of this Regulation, the following definitions apply: 

(1) 

(2) 

(3) 

‘defence  product’  means  goods,  services  and  works  that  fall  within  the  scope  of 
Directive 2009/81/EC, as set out in Article 2 thereof; 

‘other products for defence purposes’ means any good, service and work other than 
those  falling  within  the  scope  of  Directive  2009/81/EC,  as  set  out  in  Article 2 
thereof,  which are necessary for or aimed at defence purposes; 

‘common  procurement’  means  the  procurement  procedure  of  defence  products  or 
other products for defence purpose and the resulting contracts, carried out by at least 
one  Member  State  receiving  financial  assistance  under  this  instrument  and  one 
additional  Member  State  or  one  Member  of  the  European  Free  Trade  Association 
which  are  members  of  the  European  Economic  Area  (‘EEA  EFTA  States’)  or 
Ukraine.  In  addition,  the  common  procurement  may  include  acceding  countries, 
candidate countries and potential candidates, and other third countries with whom the 
Union  has  entered  a  Security  and  Defence  Partnership  (Non-Binding  Instrument, 
NBI). 

Article 3 
Complementary nature of the SAFE instrument 

The  SAFE  instrument  shall  complement  the  measures  taken  by  the  Union  as  well  as  by 
Member  States  to  carry  out  urgent  and  major  public  investments  to  support  the  European 
defence industry. 

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1. 

2. 

3. 

Article 4 
Conditions for using the SAFE instrument 

A  Member  State  may  request  financial  assistance  under  the  SAFE  instrument 
(‘financial  assistance’)  for  activities,  expenditures  and  measures  related  to  defence 
products  or  other  products  for  defence  purpose  carried  out  through  common 
procurements  respecting  the  eligibility  rules  set  out  in  Article  16  and  aiming  at,  in 
particular:  

(a) 

(b) 

speeding  up  the  adjustment  of  the  defence  industry  to  structural  changes, 
including through the creation and ramp-up of its manufacturing capacities  as 
well as related supporting activities; 

improving  the  timely  availability  of  defence  products,  including  through  the 
reduction  of  their  delivery  lead  time,  reservation  of  manufacturing  slots  or 
stockpiling of defence products, intermediate products or raw materials; 

(c) 

ensuring interoperability and interchangeability across the Union. 

A Member State may use financial assistance under the SAFE instrument in synergy 
with  other  Union  programmes  in  accordance  with  the  rules  of  those  programmes. 
Financial  assistance  under  the  SAFE  instrument  may  also  be  used  to  finance 
activities  which  have  received  a  Union  contribution  under  another  Union 
programme. 

By  derogation  to  paragraph  1,  procurements  carried  by  one  Member  State  may  be 
eligible for support under the SAFE instrument during 12 months after the entry into 
force of the Regulation. Where a Member State includes such a procurement in the 
plan referred to in Article 7(2), it shall actively take all necessary steps to extend the 
benefit of the contract concerned to at least one additional Member State or one EEA 
EFTA  State  or  Ukraine,  in  addition  to  any  interested  acceding  country,  candidate 
country, potential candidate, or other third country with whom the Union has entered 
a Security and Defence Partnership. Eligibility conditions established in Article 16(2) 
to (12) shall apply mutatis mutandis.  

Article 5 
Form of the financial assistance 

The  financial  assistance  shall  take  the  form  of  a  loan  granted  by  the  Union  to  the  Member 
State concerned.  

Article 6 
Maximum amount of financial assistance 

The maximum amount of financial assistance in the form of loans provided under the SAFE 
instrument shall be EUR 150 000 000 000. 

Article 7 
Request for financial assistance and European defence industry investment plan 

1. 

Within  six  months  as  of  the  entry  into  force  of  this  Regulation  a  Member  State 
wishing to receive financial assistance shall send a request to the Commission. The 
request  shall  be  accompanied  by  a  plan  (‘European  defence  industry  investment 
plan’). 

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2. 

The  European  defence  industry  investment  plan  shall  be  duly  reasoned  and 
substantiated. It shall set out the following elements: 

(a) 

description  of  the  defence  product  and  other  products  for  defence  purposes 
needs related to: 

(1)  Category  one:  ammunition  and  missiles;  artillery  systems;  small  drones 
(NATO  class  1)  and  related  anti-drone  systems;  critical  infrastructure 
protection; cyber and military mobility. 

(2)  Category  two:  air  and  missile  defence;  drones  other  than  small  drones 
(NATO class 2 and 3) and related anti-drone systems; strategic enablers; 
space assets protection; artificial intelligence and electronic warfare. 

(b)  description of the planned activities, expenditures and measures in accordance 

with Article 4; 

(c)  where relevant,  the description of the foreseen involvement  of Ukraine in the 
planned  activities,  expenditures  and  measures,  or  of  foreseen  actions  for  the 
benefit of Ukraine; 

(d)  description of the planned measures aimed at ensuring compliance with Article 
16 and procurement rules, including a description of how their respect is to be 
ensured; and 

(e) 

any other relevant information. 

Member  States  shall  indicate,  where  appropriate,  synergies  with  the  European 
defence industry investment plans of other Member States, with activities carried out 
on the level of the Union.  

Where relevant, Member States shall include a description of activities to strengthen 
security  of  supply  and  resilience,  in  particular  by  facilitating  the  access  to  the 
defence market for SMEs, mid-caps and new defence players. 

When  preparing  their  European  defence  industry  investment  plans,  Member  States 
may request the Commission to organise an exchange of good practices in order to 
allow the requesting Member States to benefit from the experience of other Member 
States. 

Member  States  may  submit  to  the  Commission  an  amended  request  for  financial 
assistance accompanied by an amended European defence industry investment  plan 
when duly justified by a change of the planned expenditure or measures and subject 
to the availability of loan amounts. 

Article 8 
Decision on the request for financial assistance 

The Commission shall assess the European defence industry investment plan referred 
to in Article 7(1) and take a decision on that request without undue delay.  

Where the Commission finds that the request fulfils the conditions laid down in this 
Regulation,  in  particular  in  Articles  4,  7(2)  and  16,  the  Commission  shall  make 
available  the  financial  assistance  by  means  of  an  implementing  decision.  The 
Commission implementing decision shall contain: 

(a) 

an assessment of the plan referred to in Article 7(1) including the elements of 
the plan referred to in Article 7(2);  

3. 

4. 

5. 

6. 

1. 

2. 

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19 

  EN 

3. 

4. 

5. 

6. 

1. 

2. 

1. 

2. 

3. 

(b) 

the amount of the loan and the amount of the loan support to be paid in form of 
pre-financing in accordance with Article 11; 

The Commission shall in all cases communicate its assessment of the request to the 
Member State concerned, providing it with reasons for its assessment. 

When adopting an implementing decision pursuant to paragraph 2, the Commission 
shall consider existing and expected financing needs of the requesting Member State, 
as  well  as  requests  for  financial  assistance  pursuant  to  this  Regulation  already 
submitted  or  planned  to  be  submitted  by  other  Member  States,  while  applying  the 
principles of equal treatment, solidarity, proportionality and transparency. 

Where following the adoption of the implementing decision referred to in paragraph 
2, amounts remain available for the financial assistance under the SAFE instrument, 
the Commission may publish a new call for expression of interest by 31 December 
2026. In such a case, the procedure set out in Article 7 and in paragraphs 1 to 4 shall 
apply mutatis mutandis. 

An  implementing  decision  pursuant  to  paragraph  2  may  be  adopted  until  30  June 
2027. 

Article 9 
Borrowing and lending operations 

In  order  to  finance  support  under  the  SAFE  instrument  in  the  form  of  loans,  the 
Commission  shall  be  empowered,  on  behalf  of  the  Union,  to  borrow  the  necessary 
funds on the capital markets or from financial institutions in accordance with Article 
224 of Regulation (EU, Euratom) 2024/2509. 

The  borrowing  and  lending  operations  under  the  SAFE  instrument  shall  be  carried 
out in euros. 

Article 10 
Loan agreement and operational arrangements 

Upon adoption of the Commission implementing decision referred to in Article 8(2), 
the Commission shall enter into a loan agreement and operational arrangements with 
the Member State.  

The loan agreement shall lay down the availability period and the detailed terms of 
the  support  under  the  SAFE  instrument  in  the  form  of  loans.  The  loan  agreement 
shall have a maximum duration of 45 years. In addition to the elements laid down in 
Article  223(4)  of  Regulation  (EU,  Euratom)  2024/2509,  the  loan  agreement  shall 
contain the amount of pre-financing and rules on clearing of pre-financing. 

the 
The  operational  arrangements  shall  set  out 
implementation  of  a  European  defence 
the 
corresponding financial assistance, including a tentative schedule of disbursement of 
the loan instalments, with yearly ceiling as appropriate. In addition, these operational 
arrangements shall set out types of documentary evidence and control rules related to 
the  fulfilment  of  the  specific  eligibility  rules  applied  by  the  Member  States  in 
accordance with Article 16, and the detailed elements referred to in Article 14. 

the  relationship  between 
investment  plan  and 

industry 

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1. 

2. 

3. 

1. 

2. 

3. 

4. 

Article 11 
Pre-financing 

Member  States  may  request,  as  part  of  their  European  defence  industry  investment 
plan, a pre-financing payment of an amount of up to 15 percent of the loan support. 

The disbursement of pre-financing shall be subject to the entry into force of the loan 
agreement referred to in Article 10(2). The loan agreement may provide that payment 
of  pre-financing  is  conditional  upon  conclusion  of  the  operational  arrangements 
referred to in Article 10(3).  

The payments shall be made subject to the availability of funding. The pre-financing 
may be disbursed in one or more tranches. 

Article 12 
Rules on payments of instalments and suspension of loans 

The period of availability of the loan which corresponds to the period during which 
payments to the Member State concerned under this Article may be approved, shall 
be  until  31  December  2030.  Payments  shall  be  made  in  instalments,  subject  to  the 
availability of funding. An instalment may be disbursed in one or more tranches. 

Upon  submission  of  the  progress  report  referred  to  in  Article  14(2),  the  Member 
State concerned may submit to the Commission a duly justified request for payment. 
Such  request  for  payment  may  be  submitted  by  the  Member  States  to  the 
Commission twice a year. 

The Commission shall assess without undue delay the completeness, correctness and 
coherence of the progress report referred to in Article 14(2). Where the Commission 
makes  a  positive  assessment,  it  shall  adopt  without  undue  delay  a  decision 
authorising the disbursement of the loan instalment. 

Where,  as  a  result  of  the  assessment  referred  to  in  paragraph  3,  the  Commission 
concludes that the report referred to in Article 14(2) is unsatisfactory, the payment of 
all or part of the loan shall be suspended. The Member State concerned may present 
its  observations  within  one  month  of  the  communication  of  the  Commission’s 
assessment. 

Article 13 
Prudential rules applicable to the portfolio of loans 

The  share  of  loans  granted  to  the  three  Member  States  representing  the  largest  share  of  the 
loans granted shall not exceed 60 per cent of the maximum amount referred to in Article 6(1). 

Article 14 
Control and audits 

1. 

2. 

The  loan  agreement  shall  contain  the  necessary  provisions  regarding  controls  and 
audits as required by Article 223(4) of Regulation (EU, Euratom) 2024/2509. 

Where  a duly  justified request  for payment is  submitted in  accordance with Article 
12,  the  beneficiary  Member  State  shall  also  submit  to  the  Commission  the  six-
monthly progress report duly justifying incurred and upcoming expenditure and other 
necessary elements.  

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21 

  EN 

1. 

2. 

1. 

2. 

3. 

4. 

5. 

Article 15 
Reporting 

The  Commission  shall  provide  the  European  Parliament  and  the  Council  with  an 
annual report on the use of financial assistance.  

Where appropriate, the report shall be accompanied by a proposal for the extension 
of the period of availability of the SAFE instrument.  

Article 16 
Eligibility rules on common procurement supporting defence industry investments 

Common procurements shall be eligible for support under the SAFE instrument only 
if they comply with the eligibility conditions set out in this Article.   

Common procurement procedures and contracts of defence products shall include the 
participation  requirements  for  contractors  and  subcontractors  involved  in  the 
common  procurement  set  out  in  paragraphs  3  to  11  and  13,  without  prejudice  to 
conditions agreed in agreements referred to in Article 17. 

Contractors  and  subcontractors  involved  in  the  common  procurement  shall  be 
established  and  have  their  executive  management  structures  in  the  Union,  EEA 
EFTA State or Ukraine. They shall not be subject to control by a third country which 
is  not  Ukraine nor an EEA EFTA State or by another third-country entity  which is 
not established in the Union, in Ukraine or in an EEA-EFTA State. 

By way of derogation from paragraph 3, a legal entity established in the Union and 
controlled by another third country or by another third-country entity may participate 
in the common procurement if it has been subject to screening within the meaning of 
Regulation (EU) 2019/452 of the European Parliament and of the Council and, where 
necessary, to appropriate mitigation measures, or if it provides guarantees verified by 
the Member State in which the contractor or subcontractor involved in the common 
procurement  is  established.  The  guarantees  shall  provide  assurances  that  the 
involvement of the contractor or subcontractor in the common procurement does not 
contravene the security and defence interests of the Union, and the Member States as 
established in the framework of the common foreign and security policy pursuant to 
Title V of the TEU. 

The guarantees referred to in paragraph 4 may be based on a standardised template 
provided by the Commission and shall be part of the tender specifications, in order to 
ensure  a  harmonised  approach  throughout  the  Union.  The  guarantees  shall,  in 
particular, substantiate that, for the purposes of the common procurement, measures 
are in place to ensure that: 

(a) 

(b) 

control  over  the  contractor  or  subcontractor  involved  in  the  common 
procurement is not exercised in a manner that restrains or restricts its ability to 
fulfil the order and to deliver results; and 

access by a third country or by a third-country entity to classified information 
relating  to  the common  procurement  is  prevented and the employees or  other 
persons  involved  in  the  common  procurement  have  a  national  security 
clearance  issued  by  a  Member  State  in  accordance  with  national  laws  and 
regulations. 

6. 

The  contracting  authority  conducting  the  common  procurement  shall  provide  the 
Commission  with  a  notification  on  the  mitigation  measures  applied  within  the 

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22 

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7. 

8. 

9. 

10. 

11. 

12. 

13. 

meaning of Regulation (EU) 2019/452 or the guarantees referred to in paragraph 4. 
Further  information  on  the  mitigation  measures  applied  or  the  guarantees  shall  be 
made available to the Commission upon request. 

infrastructure,  facilities,  assets  and  resources  of 

The 
the  contractors  and 
subcontractors involved in the common procurement which are used for the purposes 
of the common procurement shall be located  in the territory of a Member State, an 
EEA  EFTA  State,  or  Ukraine.  Where  contractors  or  subcontractors  involved  in  the 
common  procurement  have  no 
relevant 
infrastructure, facilities, assets and resources on the territory of a Member State, an 
EEA EFTA State, or Ukraine, they may use their infrastructure, facilities, assets and 
resources which are located or held outside those territories, provided that such use 
does not contravene the security and defence interests of the Union and its Member 
States. 

readily  available  alternatives  or 

The  cost  of  components  originating  in  the  Union,  in  EEA  EFTA  States or  Ukraine 
shall not be lower than 65 % of the estimated cost of the end product. No component 
shall be sourced from another third country that contravenes the security and defence 
interests of the Union or its Member States. 

For defence products related to category two as referred to in point (a) (2) of Article 
7(4),  contractors  shall  have  the  ability  to  decide,  without  restrictions  imposed  by 
third  countries  or  by  third-country  entities,  on  the  definition,  adaptation  and 
evolution of the design of the defence product procured, including the legal authority 
to  substitute  or  disassemble  components  that  are  subject  to  restrictions  imposed  by 
third countries or by third-country entities. 

For  the  purposes  of  this  Article,  ‘subcontractors  involved  in  the  common 
procurement’  means  any  legal  entity  which  provides  critical  inputs  that  possess 
unique attributes essential for the functioning of a product and which is allocated at 
least 15 % of the value of the contract. 

Member States shall ensure that the procurement procedures and contracts for other 
products  for  defence  purpose  resulting  from  the  common  procurement  receiving 
support under this Instrument contain appropriate eligibility conditions to protect the 
security and defence interests of the Union and the Member States. 

Member States shall detail, in the plan referred to in Article 7, eligibility conditions 
in  line  with  paragraphs  3  to  11  and  13,  without  prejudice  to  conditions  agreed  in 
agreements  referred  to  in  Article  17.  Financial  assistance  shall  be  conditional  upon 
presentation  with  the  progress  report  of  information  indicated  in  the  operational 
arrangements referred to in Article 10. 

Member States may use the financial assistance provided under the SAFE instrument 
to  finance  their  participation  in  procurement  procedures  carried  out  in  accordance 
with Article 168(2) or (3) of Regulation (EU, Euratom) 2024/2509. In this case, by 
way  of  derogation  from  Article  168(2)  and  (3)  of  Regulation  (EU,  Euratom) 
2024/2509,  third  countries  participating  in  the  common  procurement  may  also 
participate in and benefit from any procurement mechanisms set out in Article 168(2) 
and (3) of Regulation (EU, Euratom) 2024/2509.  

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23 

  EN 

1. 

2. 

Article 17 
Conditions for the participation of other third countries entities and products  

The  Union  may  conclude  bilateral  or  multilateral  agreements  with  like-minded 
countries,  namely  acceding  countries,  candidate  countries  other  than  Ukraine  and 
potential candidates,  and other third countries  with  whom the Union has entered a 
Security  and  Defence  Partnership  (NBI)  in  order  to  open  the  eligibility  conditions 
referred to in Article 16 to the possibility to fulfil the criterion of location, origin or 
place  of  establishment  to  those  countries  and  their  territories,  in  accordance  with 
paragraphs 2 and 3, whenever these countries participate in a common procurement 
under the SAFE instrument. 

The bilateral or multilateral agreement referred to in paragraph 1  shall specify which 
of  the  eligibility  conditions  referred  to  in  Article  16  are  opened  to  being  fulfilled 
through  location,  origin  or  place  of  establishment  in  the  third  country  or  third 
countries  that  are  parties  to  the  Agreement,  and  their  territories,  and  under  which 
conditions. It shall lay down, in particular and where appropriate:  

(a) 

(b) 

(c) 

(d) 

the conditions and modalities of participation of contractors and subcontractors 
established  in  the  third  country  in  the  common  procurement  under  the  SAFE 
instrument; 

the  rules  related  to  the  location  of  the  infrastructure,  facilities,  assets  and 
resources  of  the  contractors  or  subcontractors  involved  in  the  common 
procurement  which  are  used  for  production  of  defence  products  or  other 
products  for  defence  purposes  supplied  under  the  contracts  resulting  from 
common procurements under the SAFE instrument; 

the rules related to the costs of components originating in the third country; 

the rules related to restrictions imposed by third countries or by third country 
entities, on the definition, adaptation and evolution of the design of the defence 
product procured with the support of the SAFE instrument.  

3. 

The bilateral or multilateral agreement shall: 

(a) 

(b) 

(c) 

(d) 

ensure  a  fair  balance  as  regards  the  contributions  and  benefits  of  the  third 
country; 

lay  down  the  conditions  of  any  financial  contribution  to  be  provided  by  the 
third country to the Union; 

lay  down  any  other  appropriate  measures  governing  the  security  of  supply  of 
the procured product. 

contribute to an increase in the standardisation of defence systems and a greater 
interoperability  between  Member  States’  and  these  other  third  countries’ 
capabilities. 

4. 

The  contributions  referred  to  in  point  (b)  of  paragraph  3  shall  constitute  external 
assigned revenues in accordance with Article 21(5) of the Financial Regulation and 
shall be used for programmes supporting the Union defence industry, the Ukrainian 
defence industry and Ukraine in accordance with the rules of those programmes. 

EN 

24 

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1. 

2. 

3. 

4. 

5. 

6. 

Article 18 
Modification of framework agreements or contracts  

Where  a  common  procurement  is  supported  by  the  SAFE  instrument,  the  rules 
provided for in paragraphs 2 to 4 shall apply to an existing framework agreement or 
contract that has as its object the purchase of defence products, is financed at least by 
one of the participating Member States in full or in part with the loan awarded under 
the  SAFE  instrument,  and  do  not  include  rules  governing  the  possibility  to 
substantially amend it. When applying paragraphs 2 and 3, the contracting authority 
that concluded the framework agreement or contract shall obtain the prior agreement 
of the undertaking with which it has concluded the framework agreement or contract. 

A  contracting  authority  of  a  Member  State  may  modify  an  existing  framework 
agreement  or  contract  for  defence  products,  where  that  framework  agreement  has 
been concluded with an undertaking complying with criteria equivalent to those laid 
down  in  Article  16(3)  to  (11),  in  order  to  add  new  contracting  authorities  from 
countries  participating  in  the  common  procurement  as  parties  to  that  framework 
agreement  or  contract.  Article  29(2),  first  subparagraph,  of  Directive  2009/81/EC, 
shall  not  apply  to  the  contracting  authorities  not  originally  party  to  the  framework 
agreement.  

By  way  of  derogation  from  Article  29(2),  third  subparagraph,  of  Directive 
2009/81/EC,  a  contracting  authority  of  a  Member  State  may  make  substantial 
amendments to the quantities set out in a framework agreement or contract, with an 
estimated value above the thresholds laid down in Article 8 of Directive 2009/81/EC, 
where  that  the  framework  agreement  or  contract  has  been  concluded  with  an 
undertaking complying with criteria equivalent to those laid down in Article 16(3) to 
(11) of this  Regulation,  and insofar as  the modification is  strictly  necessary for the 
application of paragraph 2.  

For the purpose of the calculation of the value referred to in paragraph 3, the updated 
value shall be the reference point when the contract includes an indexation clause. 

A  contracting  authority  which  has  modified  a  framework  agreement  or  contract  in 
the  cases  referred  to  in  paragraph  2  or  3  shall  publish  a  notice  to  that  effect  in  the 
Official  Journal  of  the  European  Union  in  accordance  with  Article  32  of  Directive 
2009/81/EC.  

In  the  cases  referred  to  in  paragraphs  2  and  3,  the  principle  of  equal  rights  and 
obligations  shall  apply  between  the  contracting  authorities  which  are  party  to  the 
framework  agreement  or  contract,  in  particular  regarding  the  cost  of  additional 
quantities procured. 

Article 19 
Cases justifying use of the negotiated procedure without publication of a contract notice 
in the context of a common procurement supported by the SAFE instrument 

Common  procurements  involving  at  least  one  Member  State  receiving  financial  assistance 
under the SAFE instrument shall be deemed to satisfy the condition of urgency resulting from 
a crisis for the purposes of Article 28(1), point (c) of Directive 2009/81/CE. 

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25 

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Article 20 
Temporary VAT exemption on importation and supply of defence products 

For  the  purpose  of  this  Regulation,  the  supplies,  including  importation  and  intra-Union 
supplies, of defence products or other products for defence purpose which are supplied under 
contracts  resulting  from  common  procurements  under  the  SAFE  Instrument  shall  be 
temporarily exempted from the value added tax by derogation to Article 2(1) of the Directive 
2006/112/EC. 

1. 

2. 

1. 

2. 

3. 

Article 21 
Application of the rules on classified information and sensitive information 

The  Commission  shall  use  a  secured  exchange  system  in  order  to  facilitate  the 
the 
information  and  sensitive 
exchange  of  classified 
Commission and the Member States and, where appropriate, with the contractors or 
other final recipients.  

information  between 

The Commission shall have access to information, including classified information, 
strictly  necessary  for  the  purpose  of  verifying  conditions  for  disbursement  of 
payments and carrying out the checks, reviews, audits, investigations, as well as the 
controls, audits and reports, as referred to in Article 14. 

Article 22 
Information, communication and publicity 

The Commission and the Member States may engage in communication activities to 
ensure  the  visibility  of  the  Union  for  the  financial  assistance  envisaged  in  the 
relevant European defence investment plans, including through joint communication 
activities  with  the  national  authorities  concerned,  while  duly  taking  into  account 
security  requirements.  The  Commission  may,  as  appropriate,  ensure  that  support 
under  this  Instrument  is  communicated  and  acknowledged  through  a  funding 
statement. 

The  Member  States  benefitting  from  the  financial  assistance  under  the  SAFE 
instrument  shall  ensure  the  visibility  of  the  Union  financial  assistance,  while  duly 
taking into account security requirements, including, where applicable, by displaying 
the emblem of the Union and an appropriate funding statement that reads ‘supported 
by  the  European  Union  –  SAFE’,  in  particular  when  promoting  the  common 
procurements  and  their  results,  by  providing  coherent,  effective  and  proportionate 
targeted information to multiple audiences, including the media and the public. 

The Commission shall implement information and communication actions relating to 
the  Instrument,  to  actions  taken  pursuant  to  the  Instrument  and  to  the  results 
obtained.  The  Commission  shall,  where  appropriate,  inform  the  representation 
offices of the European Parliament of its actions and involve them in those actions. 

Article 23 
Entry into force 

This  Regulation  shall  enter  into  force  on  the  day  following  that  of  its  publication  in  the 
Official Journal of the European Union. 

EN 

26 

  EN 

This Regulation shall be binding in its entirety and directly applicable in all Member States. 

Done at Brussels, 

For the Council 
The President 

EN 

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  EN 

 
 
LEGISLATIVE FINANCIAL AND DIGITAL STATEMENT 

1. 

1.1. 

1.2. 

1.3. 

FRAMEWORK OF THE PROPOSAL/INITIATIVE ................................................. 3 

Title of the proposal/initiative ...................................................................................... 3 

Policy area(s) concerned .............................................................................................. 3 

Objective(s) .................................................................................................................. 3 

1.3.1.  General objective(s) ..................................................................................................... 3 

1.3.2.  Specific objective(s) ..................................................................................................... 3 

1.3.3.  Expected result(s) and impact ...................................................................................... 3 

1.3.4. 

Indicators of performance ............................................................................................ 3 

1.4. 

1.5. 

The proposal/initiative relates to: ................................................................................. 4 

Grounds for the proposal/initiative .............................................................................. 4 

1.5.1.  Requirement(s) to be met in the short or long term including a detailed timeline for 

roll-out of the implementation of the initiative ............................................................ 4 

1.5.2.  Added value of EU involvement (it may result from different factors, e.g. 

coordination gains, legal certainty, greater effectiveness or complementarities). For 
the purposes of this section 'added value of EU involvement' is the value resulting 
from EU action, that is additional to the value that would have been otherwise 
created by Member States alone. ................................................................................. 4 

1.5.3.  Lessons learned from similar experiences in the past .................................................. 4 

1.5.4.  Compatibility with the multiannual financial framework and possible synergies with 
other appropriate instruments ....................................................................................... 5 

1.5.5.  Assessment of the different available financing options, including scope for 

redeployment ................................................................................................................ 5 

1.6. 

1.7. 

2. 

2.1. 

2.2. 

2.2.1. 

2.2.2. 

Duration of the proposal/initiative and of its financial impact .................................... 6 

Method(s) of budget implementation planned ............................................................. 6 

MANAGEMENT MEASURES................................................................................... 8 

Monitoring and reporting rules .................................................................................... 8 

Management and control system(s) ............................................................................. 8 

Justification of the budget implementation method(s), the funding implementation 
mechanism(s), the payment modalities and the control strategy proposed .................. 8 

Information concerning the risks identified and the internal control system(s) set up 
to mitigate them............................................................................................................ 8 

2.2.3.  Estimation and justification of the cost-effectiveness of the controls (ratio between 

the control costs  and the value of the related funds managed), and assessment of the 
expected levels of risk of error (at payment & at closure) ........................................... 8 

2.3. 

3. 

3.1. 

Measures to prevent fraud and irregularities ................................................................ 9 

ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE ............ 10 

Heading(s) of the multiannual financial framework and expenditure budget line(s) 
affected ....................................................................................................................... 10 

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3.2. 

Estimated financial impact of the proposal on appropriations ................................... 12 

3.2.1.  Summary of estimated impact on operational appropriations.................................... 12 

3.2.1.1.  Appropriations from voted budget ............................................................................. 12 

3.2.1.2.  Appropriations from external assigned revenues ....................................................... 17 

3.2.2.  Estimated output funded from operational appropriations......................................... 22 

3.2.3.  Summary of estimated impact on administrative appropriations ............................... 24 

3.2.3.1. Appropriations from voted budget .............................................................................. 24 

3.2.3.2.  Appropriations from external assigned revenues ....................................................... 24 

3.2.3.3.  Total appropriations ................................................................................................... 24 

3.2.4.  Estimated requirements of human resources.............................................................. 25 

3.2.4.1.  Financed from voted budget....................................................................................... 25 

3.2.4.2.  Financed from external assigned revenues ................................................................ 26 

3.2.4.3.  Total requirements of human resources ..................................................................... 26 

3.2.5.  Overview of estimated impact on digital technology-related investments ................ 28 

3.2.6.  Compatibility with the current multiannual financial framework.............................. 28 

3.2.7.  Third-party contributions ........................................................................................... 28 

3.3. 

4. 

4.1. 

4.2. 

4.3. 

4.4. 

4.5. 

Estimated impact on revenue ..................................................................................... 29 

DIGITAL DIMENSIONS .......................................................................................... 29 

Requirements of digital relevance .............................................................................. 30 

Data ............................................................................................................................ 30 

Digital solutions ......................................................................................................... 31 

Interoperability assessment ........................................................................................ 31 

Measures to support digital implementation .............................................................. 32 

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1. 

FRAMEWORK OF THE PROPOSAL/INITIATIVE  

1.1. 

Title of the proposal/initiative 

Proposal  for  a  COUNCIL  REGULATION  establishing  the  Security  Action  For 
Europe (SAFE) through the Reinforcement of European Defence Industry Instrument  

1.2. 

Policy area(s) concerned  

Defence industry 

1.3. 

Objective(s) 

1.3.1.  General objective(s) 

Not applicable.  

The proposed Regulation is an emergency measure put forward by the  Commission 
to the Council with a view to provide Union financial assistance to Member States in 
a  spirit  of  solidarity  in  order  to  help  them  to  carry  out  urgent  and  major  public 
investments to support the European defence industry. 

1.3.2. 

Specific objective(s) 

Specific objective No 

Not applicable  

1.3.3.  Expected result(s) and impact 

Specify the effects which the proposal/initiative should have on the beneficiaries/groups targeted. 

The  aim  of  the  proposed  SAFE  instrument  is  to  lay  down  the  rules  enabling  the 
Union to provide financial assistance to a Member State, which is experiencing, or is 
seriously  threatened  with,  a  severe  economic  disturbance  caused  by  Russia’s 
unprovoked and unjustified war of aggression against Ukraine. 

Specifically,  the  SAFE  instrument  provides  financial  assistance  for  activities, 
expenditures and measures  related to defence products carried out through common 
procurement aiming at:  

speeding up, in a collaborative manner, the adjustment of defence industry to 
(a) 
structural changes, including through the creation and ramp-up of its manufacturing 
capacities as well as related supporting activities;   

improving  the  timely  availability  of  defence  products,  including  through  the 
(b) 
reduction  of  their  delivery  lead  time,  reservation  of  manufacturing  slots  or 
stockpiling of defence products, intermediate products or raw materials; 

(c) 

ensuring interoperability and interchangeability across Europe; and 

It  sets  out  the  conditions  and  procedures  for  providing  and  implementation  the 
the  Member  States,  and  for 
financial  assistance  under 
simplification and acceleration of the procedures of common procurement. 

the  Instrument  by 

1.3.4. 

Indicators of performance 

Specify the indicators for monitoring progress and achievements. 

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3 

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1.4. 

The proposal/initiative relates to:  

 a new action  
 a new action following a pilot project / preparatory action12  

 the extension of an existing action  

 a merger or redirection of one or more actions towards another/a new action 

1.5. 

Grounds for the proposal/initiative  

1.5.1.  Requirement(s) to be met in the short or long term including a detailed timeline for 

roll-out of the implementation of the initiative 

The proposed SAFE instrument is based on Article 122 (1) and (2) TFEU.  

This legal basis prescribes that: 

- appropriate measures can be taken by the Union to respond in a spirit of solidarity 
between Member States to a specific economic situation.  

-  Union  financial  assistance  can  be  granted  when  a  Member  State  is  faced  with 
difficulties or threatened by difficulties caused by an exceptional occurrence beyond 
its control but subject to conditions.  

Currently,  Member  States  are  facing  a  severe  economic  disturbance  caused  by 
Russia’s  unprovoked  and  unjustified  war  of  aggression  against  Ukraine  which  has 
strong negative socio-economic impacts in Member States .  

1.5.2.  Added  value  of  EU  involvement  (it  may  result  from  different  factors,  e.g. 
coordination gains, legal certainty, greater effectiveness or complementarities). For 
the  purposes  of  this  section  'added  value  of  EU  involvement'  is  the  value  resulting 
from  EU  action,  that  is  additional  to  the  value  that  would  have  been  otherwise 
created by Member States alone. 

The proposal aims to offer financial support  in a spirit of European solidarity with 
those Member States that are heavily affected. Such financial assistance supports on 
a  temporary  basis  Member  States’  increased  public  expenditure  as  is  by  means  of 
loans  in  order  to  help  them  to  carry  out  urgent  and  major  public  investments  to 
support the European defence industry. 

The Instrument should allow to carry out urgent and major public investments to the 
European  defence  industry  aiming  at  rapid  increase  of  its  production  capacity, 
improvement  of  the  timely  availability  of  defence  products,  speeding  up  and 
adjustment  to  structural  changes  as  well  as  the  industrial  development  of  new 
defence  products  or  the  upgrading  of  existing  ones,  to  accompany  their  effort  to 
rapidly  increase  the  production  capacity  of  the  European  defence  industry,  thus 
improving the supply of defence products.. 

1.5.3.  Lessons learned from similar experiences in the past 

When the Union was confronted with a grave financial crisis a decade ago, the legal 
basis of Article 122 of the Treaty on the Functioning of the European Union (TFEU) 
has proven it is added value to mobilise at short notice financial assistance from the 
Union  to  Member  States  faced  with  difficulties  caused  by  an  exceptional  event 

12 

As referred to in Article 58(2), point (a) or (b) of the Financial Regulation. 

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beyond  their  control.  The  Union  adopted  on  this  legal  basis  Regulation  (EU)  No 
407/2010  of  the  Council  of  11  May  2010  establishing  a  European  Financial 
Stabilisation  Mechanism  (EFSM).  This  instrument  provided  Union  financial 
assistance to Portugal, Ireland and a bridge financing to Greece by means of back-to-
back-loans.  This  legal  basis  has  also  been  used  to  provide  financial  assistance  to 
Member States that were facing severe economic disturbance caused by the COVID-
19  crisis  for  the  financing  of  short-time  work  or  similar  measures  aimed  to  protect 
employees  and  self-employed  and  thus  reduce  the  incidence  of  unemployment 
(SURE). 

The  legal  basis  and  the  technique  are  however  not  confined  to  financial  crisis  or 
health crisis  events  only  but  to  any exceptional  occurrence beyond Member States’ 
control and could therefore also be used in this particular crisis event of the current 
security situation and the impact it has on the European economy.  

1.5.4.  Compatibility with the multiannual financial framework and possible synergies with 

other appropriate instruments 

The  proposed  SAFE  instrument  complements  the  Union  support  to  Ukraine 
initiatives,  in  particular  the  Ukraine  Facility,  and  the  emergency  instruments  in 
support  of  European  defence  industry  adopted  in  response  of  Russia’s  war  of 
aggression against Ukraine, in particular the ASAP Regulation, EDIRPA Regulation 
and the upcoming EDIP Regulation. 

1.5.5.  Assessment  of  the  different  available  financing  options,  including  scope  for 

redeployment 

Not applicable 

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1.6. 

Duration of the proposal/initiative and of its financial impact 

 limited duration  

–    in effect from [DD/MM]2025 to [31/12]2030  

–    financial  impact  from  YYYY  to  YYYY  for  commitment  appropriations  and 

from YYYY to YYYY for payment appropriations.  

 unlimited duration 

–  Implementation with a start-up period from YYYY to YYYY, 

–  followed by full-scale operation. 

1.7.  Method(s) of budget implementation planned13  

 Direct management by the Commission 

–   by its departments, including by its staff in the Union delegations;  

–    by the executive agencies  

 Shared management with the Member States  

 Indirect management by entrusting budget implementation tasks to: 

–   third countries or the bodies they have designated 

–   international organisations and their agencies (to be specified) 

–   the European Investment Bank and the European Investment Fund 

–   bodies referred to in Articles 70 and 71 of the Financial Regulation 

–   public law bodies 

–   bodies governed by private law with a public service mission to the extent that 

they are provided with adequate financial guarantees 

–   bodies governed by the private law of a Member State that are entrusted with 
the  implementation  of  a  public-private  partnership  and  that  are  provided  with 
adequate financial guarantees 

–   bodies or persons entrusted with the implementation of specific actions in the 
common  foreign  and  security  policy  pursuant  to  Title  V  of  the  Treaty  on 
European Union, and identified in the relevant basic act 

–  bodies  established  in  a  Member  State,  governed  by  the  private  law  of  a 
Member  State  or  Union  law  and  eligible  to  be  entrusted,  in  accordance  with 
sector-specific  rules,  with  the  implementation  of  Union  funds  or  budgetary 
guarantees,  to  the extent that such bodies are controlled by public law bodies or 
by bodies governed by private law with a public service mission, and are provided 
with adequate financial guarantees in the form of joint and several liability by the 
controlling bodies or equivalent financial guarantees and which may be, for each 
action, limited to the maximum amount of the Union support. 

Comments  

13 

Details of budget implementation methods and references to the Financial Regulation may be found on 
the BUDGpedia site: https://myintracomm.ec.europa.eu/corp/budget/financial-rules/budget-
implementation/Pages/implementation-methods.aspx. 

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The proposed Regulation is based on Article 122 TFEU. Hence, it can only be of a temporary 
nature.  Giving  the  need  to  swiftly  place  orders  with  the  European  defence  industry  and  to 
ensure industrial capacity building, this Regulation should be limited to 5 years.  

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2. 

MANAGEMENT MEASURES  

2.1.  Monitoring and reporting rules  

The  proposed  Regulation  provides  for  a  reporting  clause  (Article  15).  The 
Commission should forward to the European Parliament and the Council, within one 
year  following  the  entry  into  force  of  this  Regulation  and  where  appropriate  every 
year  thereafter,  a  report  on  the  use  of  financial  assistance  and  continuation  of  the 
exceptional occurrences that justify the adoption and application of this Regulation. 

2.2.  Management and control system(s)  

2.2.1. 

Justification  of  the  budget  implementation  method(s),  the  funding  implementation 
mechanism(s), the payment modalities and the control strategy proposed 

The  proposed  Regulation  lays  down  prudential  rules  to  manage  the  risks  related  to 
the loan portfolio (Articles 12, 13 and 14 

2.2.2. 

Information concerning the risks identified and the internal control system(s) set up 
to mitigate them 

2.2.3.  Estimation  and  justification  of  the  cost-effectiveness  of  the  controls  (ratio  between 
the control costs  and the value of the related funds managed), and assessment of the 
expected levels of risk of error (at payment & at closure)  

2.3.  Measures to prevent fraud and irregularities  

The  proposed  Regulation  lays  down  control  and  audit  rules  (Article  14).  The 
Commission shall ensure that the necessary provisions regarding controls and audits 
are provided for in the agreement concluded with the beneficiary Member State for 
the purposes of implementing Union financial assistance under the SAFE instrument. 
The rules of Article 220 of the Financial Regulation apply. 

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3. 

ESTIMATED FINANCIAL IMPACT OF THE PROPOSAL/INITIATIVE  

3.1. 

Heading(s) of the multiannual financial framework and expenditure budget line(s) affected  

•  Existing budget lines  

In order of multiannual financial framework headings and budget lines. 

Budget line 

Type of 
expenditure 

Contribution  

Heading of 
multiannual 
financial 
framework 

Number  

[XX.YY.YY.YY] 

[XX.YY.YY.YY] 

[XX.YY.YY.YY] 

Diff./Non-
diff.14 

from 
EFTA 
countries
15 

from 
candidate 
countries 
and 
potential 
candidates
16 

From 
other 
third 
countries 

other assigned 
revenue 

Diff./Non
-diff. 

Diff./Non
-diff. 

Diff./Non
-diff. 

YES/NO  YES/NO  YES/NO 

YES/NO 

YES/NO  YES/NO  YES/NO 

YES/NO 

YES/NO  YES/NO  YES/NO 

YES/NO 

3.2. 

Estimated financial impact of the proposal on appropriations  

3.2.1. 

Summary of estimated impact on operational appropriations  

–    The proposal/initiative does not require the use of operational appropriations  

14 
15 
16 

Diff. = Differentiated appropriations / Non-diff. = Non-differentiated appropriations. 
EFTA: European Free Trade Association.  
Candidate countries and, where applicable, potential candidates from the Western Balkans. 

EN 

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–    The proposal/initiative requires the use of operational appropriations, as explained below 

3.2.1.1.  Appropriations from voted budget 

Heading of multiannual financial framework  

5 

Security and Defence 

EUR million (to three decimal places) 

DG DEFIS  

TOTAL 

operational 

appropriations  

Commitments 

Payments 

TOTAL  appropriations  of  an  administrative  nature  financed 
from the envelope for specific programmes  

TOTAL appropriations under 
HEADING 5 

Commitments 

of the multiannual financial framework 

Payments 

(4) 

(5) 

(6) 

=4+6 

=5+6 

•  TOTAL  operational  appropriations 
operational headings) 

(all 

Commitments 

Payments 

•  TOTAL  appropriations  of  an  administrative  nature  financed 
from  the  envelope  for  specific  programmes  (all  operational 
headings) 

TOTAL appropriations Under          

Heading 1 to 6 

Commitments 

of the multiannual financial framework 
(Reference amount) 

Payments 

(4) 

(5) 

(6) 

=4+6 

=5+6 

Year 

2024 

Year 

2025 

Year 

2026 

Year 

2027 

TOTAL MFF 
2021-2027 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

Year 

2024 

Year 

2025 

0.000 

Year 

2026 

0.000 

Year 

2027 

0.000 

0.000 

TOTAL MFF 
2021-2027 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

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Heading of multiannual financial  framework  

7 

‘Administrative expenditure’17 

DG DEFIS 

 Human resources  
 Other administrative expenditure  

TOTAL DG DEFIS 

Appropriations  

DG BUDG 

 Human resources  
 Other administrative expenditure  

TOTAL DG BUDG 

Appropriations  

TOTAL appropriations under HEADING 7 of the multiannual financial 
framework  

(Total 
commitments 
= Total 
payments) 

Year 

2024 

Year 

2025 

Year 

2026 

Year 

2027 

0.000 

0.000 

0.000 

4.512 

0.046 

4.558 

6.768 

0.100 

6.868 

6.768 

0.100 

6.868 

TOTAL 
MFF 2021-
2027 

18.048 

0.246 

18.294 

Year 

2024 

Year 

2025 

Year 

2026 

Year 

2027 

0.000 

0.000 

0.000 

0.376 

0.000 

0.376 

0.376 

0.000 

0.376 

0.376 

0.000 

0.376 

TOTAL 
MFF 2021-
2027 

1.128 

0.000 

1.128 

0.000 

4.934 

7.244 

7.244 

19.422 

TOTAL appropriations under HEADINGS 1 to 7 

Commitments 

0.000 

4.934 

7.244 

7.244 

19.422 

EUR million (to three decimal places) 

Year 

2024 

Year 

2025 

Year 

2026 

Year 

2027 

TOTAL MFF 
2021-2027 

17 

The necessary appropriations should be determined using the annual average cost figures available on the appropriate BUDGpedia webpage. 

EN 

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of the multiannual financial framework  

Payments 

0.000 

4.934 

7.244 

7.244 

19.422 

3.2.2.  Estimated output funded from operational appropriations (not to be completed for decentralised agencies) 

Year  
2024 

Year  
2025 

Year  
2026 

Year  
2027 

OUTPUTS 

Commitment appropriations in EUR million (to three decimal places) 

Enter as many years as necessary to show the 
duration of the impact (see Section1.6) 

TOTAL 

o
N

Cost 

o
N

Cost 

o
N

Cost 

o
N

Cost 

o
N

Cost  N

o

Cost 

o
N

Cost 

Total 
No 

Total 
cost 

Indicate 
objectives and 
outputs  

 

Type18 

Avera
ge 
cost 

SPECIFIC OBJECTIVE No 119… 

- Output 

- Output 

- Output 

Subtotal for specific objective No 1 

SPECIFIC OBJECTIVE No 2 ... 

- Output 

Subtotal for specific objective No 2 

TOTALS 

18 
19 

Outputs are products and services to be supplied (e.g. number of student exchanges financed, number of km of roads built, etc.). 
As described in Section 1.3.2. ‘Specific objective(s)’  

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3.2.3. 

Summary of estimated impact on administrative appropriations  

–    The  proposal/initiative  does  not  require  the  use  of  appropriations  of  an 

administrative nature  

–    The proposal/initiative requires the use of appropriations of an administrative 

nature, as explained below 

3.2.3.1. Appropriations from voted budget 

VOTED APPROPRIATIONS 

Year 

2024 

Year 

2025 

Year 

2026 

Year 

2027 

TOTAL 
2021 - 2027 

HEADING 7 

Human resources  

Other administrative expenditure  

Subtotal HEADING 7 

Outside HEADING 7 

Human resources  

Other expenditure of an administrative nature 

Subtotal outside HEADING 7 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

4.888 

0.046 

4.934 

0.000 

0.000 

0.000 

7.144 

0.100 

7.244 

0.000 

0.000 

0.000 

7.144 

0.100 

7.244 

0.000 

0.000 

0.000 

19.176 

0.246 

19.422 

0.000 

0.000 

0.000 

TOTAL 

0.000 

4.934 

7.244 

7.244 

19.422 

3.2.3.2.  Appropriations from external assigned revenues 

EXTERNAL ASSIGNED REVENUES 

Year 

2024 

Year 

2025 

Year 

2026 

Year 

2027 

TOTAL 
2021 - 2027 

HEADING 7 

Human resources  

Other administrative expenditure  

Subtotal HEADING 7 

Outside HEADING 7 

Human resources  

Other expenditure of an administrative nature 

Subtotal outside HEADING 7 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

TOTAL 

0.000 

0.000 

0.000 

0.000 

0.000 

3.2.3.3.  Total appropriations 

TOTAL 

EXTERNAL ASSIGNED REVENUES 

HEADING 7 

Human resources  

Other administrative expenditure  

Subtotal HEADING 7 

Outside HEADING 7 

VOTED APPROPRIATIONS                            

+                                                               

Year 

2024 

Year 

Year 

Year 

2025 

2026 

2027 

TOTAL 
2021 - 
2027 

0.000 

4.888 

7.144 

7.144 

19.176 

0.000 

0.000 

0.046 

4.934 

0.100 

7.244 

0.100 

7.244 

0.246 

19.422 

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Human resources  

Other expenditure of an administrative nature 

Subtotal outside HEADING 7 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

TOTAL 

0.000 

4.934 

7.244 

7.244 

19.422 

The  appropriations  required  for  human  resources  and  other  expenditure  of  an  administrative  nature 
will  be  met  by  appropriations  from  the  DG  that  are  already  assigned  to  management  of  the  action 
and/or  have  been  redeployed  within  the  DG,  together,  if  necessary,  with  any  additional  allocation 
which may be granted to the managing DG under the annual allocation procedure and in the light of 
budgetary constraints. 

3.2.4.  Estimated requirements of human resources  

–    The proposal/initiative does not require the use of human resources  

–    The  proposal/initiative  requires  the  use  of  human  resources,  as  explained 

below 

3.2.4.1.  Financed from voted budget 

Estimate to be expressed in full-time equivalent units (FTEs)20 

VOTED APPROPRIATIONS 

 Establishment plan posts (officials and temporary staff) 

20 01 02 01 (Headquarters and Commission’s Representation Offices) 

20 01 02 03 (EU Delegations) 

01 01 01 01 (Indirect research) 

01 01 01 11 (Direct research) 

Other budget lines (specify) 

• External staff (inFTEs) 

20 02 01 (AC, END from the ‘global envelope’) 

20 02 03 (AC, AL, END and JPD in the EU Delegations) 

Admin. Support 
line 
[XX.01.YY.YY] 

- at Headquarters 

- in EU Delegations  

01 01 01 02 (AC, END - Indirect research) 

 01 01 01 12 (AC, END - Direct research) 

Other budget lines (specify) - Heading 7 

Other budget lines (specify) - Outside Heading 7 

TOTAL 

Year 

Year 

Year 

Year 

2024 

2025 

2026 

2027 

Years 
2028-
2030 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

26 

38 

38 

38 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

26 

38 

38 

38 

20 

Please specify below the table how many FTEs within the number indicated are already assigned to the 
management of the action and/or can be redeployed within your DG and what are your net needs. 

EN 

14 

  EN 

 
  
 
 
 
 
The number of FTEs here above is the needs of additional resources in order to manage the 
activities in DG DEFIS and DG BUDG.  

3.2.4.2.  Financed from external assigned revenues 

EXTERNAL ASSIGNED REVENUES 

Year 

Year 

Year 

Year 

2024 

2025 

2026 

2027 

Years 
2028-
2030 

 Establishment plan posts (officials and temporary staff) 

20 01 02 01 (Headquarters and Commission’s Representation Offices) 

20 01 02 03 (EU Delegations) 

01 01 01 01 (Indirect research) 

01 01 01 11 (Direct research) 

Other budget lines (specify) 

• External staff (in full time equivalent units) 

20 02 01 (AC, END from the ‘global envelope’) 

20 02 03 (AC, AL, END and JPD in the EU Delegations) 

Admin. Support 
line  
[XX.01.YY.YY] 

- at Headquarters 

- in EU Delegations  

01 01 01 02 (AC, END - Indirect research) 

 01 01 01 12 (AC, END - Direct research) 

Other budget lines (specify) - Heading 7 

Other budget lines (specify) - Outside Heading 7 

TOTAL 

3.2.4.3.  Total requirements of human resources 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

TOTAL VOTED APPROPRIATIONS                                                   

Year 

Year 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

Year 

Year 

Years 

EXTERNAL ASSIGNED REVENUES 

2024 

2025 

2026 

2027 

+                                                                                               

2028-
2030 

 Establishment plan posts (officials and temporary staff) 
20 01 02 01 (Headquarters and Commission’s Representation 

Offices) 

20 01 02 03 (EU Delegations) 

01 01 01 01 (Indirect research) 

01 01 01 11 (Direct research) 

Other budget lines (specify) 

• External staff (in full time equivalent units) 

20 02 01 (AC, END from the ‘global envelope’) 

20 02 03 (AC, AL, END and JPD in the EU Delegations) 

Admin. Support 
line  
[XX.01.YY.YY] 

- at Headquarters 

- in EU Delegations  

01 01 01 02 (AC, END - Indirect research) 

 01 01 01 12 (AC, END - Direct research) 

Other budget lines (specify) - Heading 7 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

26 

38 

38 

38 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

0 

EN 

15 

  EN 

 
 
 
 
 
 
 
 
Other budget lines (specify) - Outside Heading 7 

TOTAL 

0 

0 

0 

26 

0 

38 

0 

38 

0 

38 

The staff required to implement the proposal (in FTEs):  

To be covered by 
current staff 
available in the 
Commission 
services  

Exceptional additional staff* 

To be financed 
under Heading 7 
or Research 

To be financed 
from BA line 

To be financed 
from fees 

N/A 

Establishment 
plan posts 

38 

External 
staff 
(CA, SNEs, INT) 

Description of tasks to be carried out by: 

Officials and temporary staff 

To manage the envelope of loans of € 150 billion, additional staff is needed. The staff 
dedicated  to  the  management  of  the  European    Defence  Fund  (EDF)  ,  ASAP  and 
EDIRPA is already insufficient to manage the EDF/ASAP/EDIRPA programmes.  

Here below : a summary of the task 

In  2025,  General  admisitrative,  financial  and  technical  support,  Coordination  and 
Implementation, Legal framework design, Phase 1 – Call for “proposals” preparation, 
assessment  of  “proposals”,  and  preparation  of  the  Council  IA  decisions  (Includes 
assesment + “dialogue” with the concerned MS on the proposed measures proposed), 
Phase 2 - Loan Agreements Preparation. 

In  2026  and  2027,  General  support,  Coordination  and  Implementation,  Legal 
framework  design,  Phase  1  -  Call  for  “proposals”  preparation,  ,ssessment  of 
“proposals”  and  preparation  of  the  Council  IA  decision  (Includes  assesment  + 
“dialogue”  with  the  concerned  MS  on  the  proposed  measures  proposed),  Phase  2  - 
Loan Agreement Preparation, Phase 3- Monitoring, control, payments and reporting. 

External staff 

3.2.5.  Overview of estimated impact on digital technology-related investments 

Compulsory: the best estimate of the digital technology-related investments entailed 
by the proposal/initiative should be included in the table below.  

Exceptionally,  when  required  for  the  implementation  of  the  proposal/initiative,  the 
appropriations under Heading 7 should be presented in the designated line.  

The appropriations under Headings 1-6 should be reflected as “Policy IT expenditure 
on operational programmes”. This expenditure refers to the operational budget to be 
used to re-use/ buy/ develop IT platforms/ tools directly linked to the implementation 
of the initiative and their associated investments (e.g. licences, studies, data storage 
etc).  The  information  provided  in  this  table  should  be  consistent  with  details 
presented under Section 4 “Digital dimensions”. 

EN 

16 

  EN 

 
 
 
 
 
 
 
 
 
 
 
TOTAL Digital and IT appropriations 

Year 

Year 

Year 

Year 

2024 

2025 

2026 

2027 

TOTAL 
MFF 
2021 - 
2027 

HEADING 7 

IT expenditure (corporate)  

Subtotal HEADING 7 

Outside HEADING 7 

Policy IT expenditure on operational 
programmes 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

0.000 

Subtotal outside HEADING 7 

0.000 

0.000 

0.000 

0.000 

0.000 

TOTAL 

0.000 

0.000 

0.000 

0.000 

0.000 

3.2.6.  Compatibility with the current multiannual financial framework  

The proposal/initiative: 

–    can be fully financed through redeployment within the relevant heading of the 

multiannual financial framework (MFF) 

The operational budget is not impacted by the regulation.  

–    requires use of the unallocated margin under the relevant heading of the MFF 

and/or use of the special instruments as defined in the MFF Regulation 

–    requires a revision of the MFF 

3.2.7.  Third-party contributions  

The proposal/initiative: 

–    does not provide for co-financing by third parties 

–    provides for the co-financing by third parties estimated below: 

Appropriations in EUR million (to three decimal places) 

Year  
2024 

Year  
2025 

Year  
2026 

Year  
2027 

Total 

Specify the co-financing body  

TOTAL appropriations co-
financed  

3.3. 

Estimated impact on revenue  

–    The proposal/initiative has no financial impact on revenue. 

–    The proposal/initiative has the following financial impact: 

– 

– 

– 

 

 

on own resources  

on other revenue 

  please indicate, if the revenue is assigned to expenditure lines 

EN 

17 

  EN 

 
  
 
 
 
 
 
 
 
 
 
 
 
 
      
4. 

DIGITAL DIMENSIONS 

4.1. 

Requirements of digital relevance 

Not applicable  

4.2. 

Data 

Not applicable  

4.3. 

Digital solutions 

Not applicable 

4.4. 

Interoperability assessment 

Not applicable 

4.5.  Measures to support digital implementation 

Not applicable. 

EN 

18 

  EN