European Commision approves further advancement of Latvia's SAFE application for defence funding

The European Commission has approved funding requests for the second group of national defense plans under the Security Action Fund for Europe (SAFE), marking another significant step in strengthening the security of the European Union. The Commission has submitted a proposal to the Council of the European Union to approve financial loans totaling approximately 74 billion euros for eight countries: Latvia, Estonia, Lithuania, Poland, Finland, Greece, Italy, and Slovakia.

"Together with the European Commission, we are building an even stronger and safer Europe - this decision is a clear signal of solidarity. Latvia will use the available funds to strengthen the combat capabilities of the National Armed Forces, develop the defense industry, and enhance regional security," emphasizes Minister of Defence Andris Sprūds.

Latvia is proposed to receive €3.49 billion by 2030, when SAFE programme concludes. As early as 2026, Latvia will be allocated up to €524 million to launch procurement and strengthen defence industry capacity. These funds will be used to reinforce national defence and security, covering the needs of the National Armed Forces and the State Border Guard. The preparation of the Industrial Investment Plans took into account the priorities set out in the National Armed Forces Development Plan for 2025–2036 and the NATO capability targets approved in 2025. SAFE funding will enable Latvia to make urgent and large-scale investments in the acquisition of military-technical equipment, develop local industry, and finance capability development. The SAFE funding requested by Latvia also includes resources to support Ukraine between 2026 and 2028.

Following the completion of the Commission's assessment, the Council has four weeks to adopt the implementing decisions. Meanwhile, the Ministry of Defence, the Ministry of the Interior, and the Ministry of Finance will work in coordination to develop the loan agreement and the agenda for implementing the program within its designated timeframe. Once compliance with the SAFE program is confirmed, the Commission will finalize the loan agreements, with the first payments expected in March 2026.

SAFE is a financial instrument established by the European Union that allows member states to borrow additional financial resources from the European Commission to mitigate critical defense capability gaps. It also promotes increased defense investment and the strengthening of the European defense industry. SAFE is a loan instrument, not a grant, and the funding provided should be viewed as a support mechanism for meeting defense requirements rather than a direct budget increase.

Information prepared by:
MoD Military Public Affairs Department
Media Relations Section
Phone: 67335129
E-mail: prese@mod.gov.lv