EU Approves Over €1.18 Billion for Cyprus in Defense Investments

The Council of the European Union has approved a package of decisions to provide financial support to eight countries under the SAFE (Security Action for Europe) instrument. Cyprus is among the recipients.

The total approved funding for the Republic amounts to €1,181,503,924, with the first tranche being €177,225,588.60. The funds will be allocated to modernizing the defense industry and procuring advanced equipment. The decision follows a positive assessment of the national plans of the participating countries by the European Commission.

The second package, planned for final approval on February 17, includes Estonia, Greece, Italy, Latvia, Lithuania, Poland, Slovakia, and Finland. Greece, in particular, requested nearly €788 million, of which the first payment will exceed €118 million.

Cyprus Defense Minister Vassilis Palmas stated that the EU Council's decision reflects a shift from declarations to practical steps in European defense. President Nikos Christodoulides welcomed the funding approval, emphasizing that it strengthens the Republic’s security and is the result of the government’s consistent efforts.

In a separate decision, the EU Council approved Canada’s participation in the SAFE program. Ottawa will become the first non-European country whose companies can participate in procurement under the instrument. The agreement will apply temporarily until final approval by the European Parliament.

SAFE is an EU mechanism for financing defense investments, proposed by the European Commission in 2024 and approved in 2025. The program covers 2025–2027 and provides member states with long-term loans to modernize armaments and develop the defense sector.