Partnerblog
On 19 March 2025, the European Commission presented a proposal for a Council Regulation establishing the Security Action for Europe (SAFE) instrument. This temporary emergency mechanism is designed to strengthen the European Defence Technological and Industrial Base (EDTIB) in response to Russia’s war of aggression against Ukraine and to the brutal deterioration of the security context in the spring of 2025.
With a lending capacity of up to EUR 150 billion, underpinned by a Union guarantee, SAFE is the flagship initiative under the ReArm Europe plan, aimed at allowing swift engagement by EU Member States in public spending to the benefit of the EDTIB with the objective to mitigate the existing difficulties in the supply of defense products.
Given the temporary and exceptional nature of the financing scheme of the SAFE instrument, the requests for the last instalment for loans shall be limited to 31 December 2030. Beyond its financial and industrial dimensions, the proposal introduces a series of immediate novel derogations from EU public procurement rules, which as urgent measures should come into force even before the envisaged (broader) reform of Directive 2009/81/EC (the Defense and Security Procurement Directive) planned in 2025-26.
Conditional access to benefits: SAFE’s incentive-based logic
SAFE is structured as an incentive mechanism for coordinated investment in a number of select defence(-related) products, amongst which figure ammunition and missiles, artillery systems, drones and anti-drone systems, critical infrastructure protection, cyber and military mobility products, as well as air and missile defence products, strategic enablers, space assets protection and products related to AI and electronic warfare.
It is not compulsory for Member States to partake in SAFE. However, access to its benefits – including procedural derogations – is conditional upon the submission and approval by the Commission of a (national) European defence industry investment plan, establishing national needs, planned activities and measures to ensure compliance with eligibility requirements (which aim to primarily develop EDTIB).
Presumption of urgency and negotiated procedure without prior publication
One of the most significant innovations introduced by SAFE is a legal presumption of urgency, which simplifies access to the negotiated procedure without prior publication under the Defence and Security Procurement Directive.
This presumption also applies to joint procurements involving non-beneficiary Member States, provided that at least one party benefits from SAFE support.
The provision marks a notable departure from existing case law, which typically requires contracting authorities to prove that the urgency is real, unforeseeable, and incompatible with the usual procurement timelines. Under SAFE, this evidentiary burden is lifted, somewhat like it has under the EU Covid 19-procurement framework.
Contract modifications: a broader framework under SAFE
The Regulation also allows for the substantial modification of existing contracts or framework agreements – beyond what is currently permissible under the Defence and Security Procurement Directive.
The Regulation authorises:
- the inclusion of additional contracting authorities in existing framework agreements, and
- substantial increases in the volume or value of contracts already awarded.
These modifications must be agreed upon by the original contractor.
The goal is to accelerate joint acquisitions by building on existing contractual structures. In practice, this will enable Member States to join forces by extending ongoing contracts without restarting full procurement procedures.
Joint procurement as a key eligibility criterion
SAFE is built around the principle of joint procurement. Only acquisitions carried out by at least two eligible actors are considered eligible for financial support under the Regulation.
To qualify, a project must involve:
- at least two Member States or eligible associated countries (e.g. EFTA States, Ukraine),
- at least one of which must benefit from SAFE financial support, and
- goods or services meeting European origin requirements.
Exceptions are possible where justified, but require a security screening.
This strict approach reflects the strategic objective of reinforcing Europe’s industrial sovereignty and ensuring that EU funds benefit domestic or closely allied defence actors.
Conclusion: procurement as a strategic enabler of European defence
SAFE represents a paradigm shift in the way the European Union approaches defence and also defence procurement. The EU is offering a comprehensive package that combines access to financing with procedural flexibility and legal certainty – provided Member States commit to coordinated investment strategies.
The instrument does not impose harmonisation by force, but incentivises voluntary alignment through conditional benefits. Whether this urgent measure may prove to have a broader impact once the entire Defense and Security Procurement Directive is up for review, is uncertain, but the new approach could – within a domain where EU guidance was tricky – further incentivise swift, though coordinated growth in the EDTIB.
Authors:
Maxime Vanderstraeten and Stef Feyen
