In 2025, Brussels launched its first-ever common borrowing programme for defence. One year on, EU policymakers are already planning a second edition of the flagship financing tool — with a push to shift from loans to grants — although several key questions about its future remain unresolved.
The Security Action for Europe (SAFE) allows EU countries to borrow low-interest loans to finance defence spending outside the EU fiscal stability framework via the so-called national escape clause.
