Croatia to receive €1.7 billion from new EU defence programme SAFE

(Photo credit Ex13/CC BY-SA 4.0)

Brussels/Strasbourg, 10 September 2025 – The European Commission has announced the provisional allocation of funds under its new defence loan instrument worth €150 billion, known as the Security Action for Europe (SAFE). Croatia is set to receive €1.7 billion.

SAFE is designed to strengthen Europe’s defence capabilities through joint procurement. So far, 19 EU member states have expressed interest in tapping into the favourable loan scheme.

The Commission will raise funds on capital markets and disburse them to participating states based on their approved investment plans for the European defence industry.

Member states now have until the end of November to submit their national plans detailing how they intend to use the allocated funds. The Commission will then assess the proposals, with the first disbursements expected at the beginning of next year.

The largest allocations have been requested and approved for Poland (€43.7 billion), Romania (€16.7 billion), France and Hungary (each €16.2 billion), and Italy (€14.9 billion).

Projects eligible for SAFE financing fall into two categories. The first includes the production of ammunition and missiles, artillery systems, land warfare equipment – such as soldier gear – protection of critical infrastructure, cybersecurity equipment, and improvements in military mobility.

The second category, which is subject to stricter conditions, covers air and missile defence systems, naval capabilities, drones and counter-drone systems, as well as space-related capacities and services, including their protection.

It also encompasses technologies such as artificial intelligence and electronic warfare equipment.

For both categories, the share of non-EU components (excluding Ukraine, Norway, Iceland, and Liechtenstein) will be capped at 35% of the total estimated project cost.

Once loans are approved, member states will be able to receive an advance of up to 15% of the project’s total value. They will also be required to report on progress twice a year when applying for subsequent payments.