EU programmes · European Commission (financed via EU capital market borrowing)
SAFE is a temporary EU financial instrument under the ReArm Europe Plan/Readiness 2030, through which the European Commission raises up to EUR 150 billion on capital markets and on-lends the proceeds to requesting EU Member States as long-maturity loans (up to 45 years, with a 10-year principal grace period). It is designed to fund rapid, large-scale common defence procurement in priority capability areas such as air and missile defence, drones, and strategic enablers. Procurement must generally involve at least two Member States, though single-country procurement is permitted on a limited basis. The regulation entered into force on 29 May 2025.
SAFE gives EU Member States access to competitively priced, long-duration sovereign-level financing specifically earmarked for defence procurement, which cascades down to defence-industry contractors and subcontractors established in the EU, EEA/EFTA states, or Ukraine. For defence-tech companies and SMEs, qualifying as a contractor or subcontractor on SAFE-funded national programmes is one of the largest near-term demand signals in European defence, covering hardware, systems integration, and dual-capable platforms. Poland's active participation (and the ongoing political debate about expanding eligible beneficiaries to border and internal-security services) signals that SAFE-linked procurement pipelines will be substantial and may broaden in scope.
European Commission (DG DEFIS), with EUSPA and the EIF
Space is treated as dual-use across EU funding; CASSINI gives space-defence start-ups an equity pipeline and visibility instruments that stack with EDF and EUDIS applications.
European Investment Fund with the European Commission, under InvestEU
Not a programme you apply to as a company, but it determines which European VCs have fresh defence-mandated capital; track its fund commitments to know who can actually write you a cheque.
European Investment Bank Group
Debt, not grants: the EIB now finances defence companies that banks still avoid, and venture debt from its one-stop shop can extend runway without dilution once you have revenue or strong contracts.