Proposal for a COUNCIL IMPLEMENTING DECISION on making the financial assistance under Regulation (EU) 2025/1106 available to Cyprus
Date: 2026-01-15
Institutions: Directorate-General for Defence Industry and Space, European Commission
Subjects: Cyprus, EU financial instrument, EU investment, European defence policy, European security, common defence procurement, defence expenditure, defence industry, military equipment, strategic autonomy

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   EUROPEAN COMMISSION  Brussels, 15.1.2026  COM(2026) 31 final 2026/0023 (NLE)  Proposal for a COUNCIL IMPLEMENTING DECISION on making the financial assistance under Regulation (EU) 2025/1106 available to Cyprus  
 
2026/0023 (NLE) 

Proposal for a 

COUNCIL IMPLEMENTING DECISION 

on making the financial assistance under Regulation (EU) 2025/1106 available to Cyprus 

THE COUNCIL OF THE EUROPEAN UNION 

Having regard to the Treaty on the Functioning of the European Union, 

Having  regard  to  Council  Regulation  (EU)  2025/1106  of  27 May  2025  establishing  the 
Security  Action  for  Europe  (SAFE)  through  the  Reinforcement  of  the  European  Defence 
Industry Instrument1, and in particular Article 8(6) thereof, 

Having regard to the proposal from the European Commission, 

Whereas: 

(1) 

(2) 

(3) 

(4) 

(5) 

(6) 

(7) 

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The  Commission  launched  a  call  for  expression  of  interest  to  receive  financial 
assistance  under  the  Security  Action  for  Europe  through  the  Reinforcement  of  the 
European Defence Industry Instrument (the ‘SAFE instrument’), requesting Member 
States  to  provide  for  an  indicative  maximum  and  minimum  loan  amount.  By 
29 August  2025,  19  Member  States  had  expressed  interest  in  obtaining  financial 
assistance under Regulation (EU) 2025/1106. 

On 9 September 2025, the Commission notified the requesting Member States of the 
tentative allocation of the loan amounts per Member State. 

On 28 November 2025, Cyprus submitted a request in accordance with Article 7(1) 
of  Regulation  (EU)  2025/1106  for  financial  assistance  (the  ‘request’)  accompanied 
by a European defence industry investment plan (the ‘plan’). 

The Commission assessed the request against the conditions laid down in Regulation 
(EU) 2025/1106. 

In  accordance  with  Article  7  of  Regulation  (EU)  2025/1106,  the  plan  was  duly 
reasoned and substantiated and set out  a description of the defence products and of 
the other products for defence purposes. 

The Commission found that the request fulfils the conditions laid down in Article 4 
of  Regulation  (EU)  2025/1106  for  using  the  SAFE  instrument.  In  particular,  it 
ensures  that  activities,  expenditures  and  measures  related  to  defence  products  or 
other  products  for  defence  purposes  are  carried  through  common  procurements  or 
single procurements. They also have the objective to speed up the adjustment of the 
defence  industry  to  structural  changes  and/or  improve  the  timely  availability  of 
defence  products,  and/or  ensure  interoperability  and  interchangeability  across  the 
Union.  

The  Commission  also  found  that  the  request  contains  a  description  of  the  planned 
measures  aimed  at  ensuring  compliance  with  Article 16  and  procurement  rules  of 

Council  Regulation  (EU)  2025/1106  of  27 May  2025  establishing  the  Security  Action  for  Europe 
(SAFE)  through  the  Reinforcement  of  the  European  Defence  industry  Instrument  (OJ  L,  2025/1106, 
28.5.2025, ELI: http://data.europa.eu/eli/reg/2025/1106/oj). 

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(8) 

(9) 

(10) 

(11) 

Regulation (EU) 2025/1106, including a description of how that compliance is to be 
ensured. 

As  a  result,  in  accordance  with  Article  8(3)  of  Regulation  (EU)  2025/1106,  the 
Commission is in a position to confirm that the request complies with the conditions 
laid down in that Regulation. 

In accordance with Article 8(5) of Regulation (EU) 2025/1106, the Commission has 
considered  existing  and  expected  financial  needs  of  Cyprus  as  well  as  requests  for 
financial  assistance  pursuant  to  that  Regulation  already  submitted  or  planned  to  be 
submitted by other Member States, while applying the principle of equal treatment, 
solidarity, proportionality and transparency. 

This  Decision should be without prejudice to the obligation of and outcome of any 
procedures under Regulation (EU) 2024/1263 of the European Parliament and of the 
Council2 and Council Regulation (EC) No 1467/973. 

This  Decision is  without prejudice to  the relevant  rules  adopted pursuant  to  Article 
322  TFEU,  in  particular  the  Financial  Regulation  and  Regulation  (EU,  Euratom) 
2020/2092 of the European Parliament and of the Council4. In line with Article 10(2) 
of the SAFE Regulation, the loan agreement should set out all appropriate measures 
necessary for the protection of the Union´s financial interests, 

HAS ADOPTED THIS DECISION:  

Article 1 

The request for financial assistance under the Security Action for Europe (SAFE) through the 
Reinforcement  of  the  European  Defence  Industry  Instrument  submitted  by  Cyprus  on 
28 November  2025  fulfils  the  conditions  laid  down  in  Regulation (EU)  2025/1106,  in 
particular those in Article 4, Article 7(2) and Article 16. 

Article 2 

1.  The  Union  shall  make  available  to  Cyprus  a  loan  amounting  to  a  maximum  of  EUR 
1,181,503,924.00. 

2.  The  Union  shall  make  the  loan  support  available  to  Cyprus.  It  shall  make  an  amount  of 
EUR 177,225,588.60 available as a pre-financing payment. 

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the 

(EC) 

Regulation 

No 1466/97 

Regulation  (EU)  2024/1263  of  the  European  Parliament  and  of  the  Council  of  29 April  2024  on  the 
effective  coordination  of  economic  policies  and  on  multilateral  budgetary  surveillance  and  repealing 
Council 
30.4.2024, 
ELI: http://data.europa.eu/eli/reg/2024/1263/oj). 
Council Regulation (EC) No 1467/97 of 7 July 1997 on speeding up and clarifying the implementation 
of 
ELI: 
http://data.europa.eu/eli/reg/1997/1467/oj). 
Regulation (EU, Euratom) 2024/2509 of the European Parliament and of the Council of 23 September 
2024 on the financial rules applicable to the general budget of the Union (OJ L, 2024/2509, 26.9.2024 
and  Regulation  (EU,  Euratom)  2020/2092  of  the  European  Parliament  and  of  the  Council  of  16 
December 2020 on a general regime of conditionality for the protection of the Union budget (OJ L 433 
I, 22.12.2020, p. 1.). 

(OJ L 2024/1263, 

procedure 

excessive 

2.8.1997, 

deficit 

p. 6, 

209, 

(OJ 

L 

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This Decision is addressed to the Republic of Cyprus. 

Done at Brussels, 

Article 3 

For the Council 
The President 

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