The European Union has approved a €787.7 million loan to Greece under its SAFE (Security Action for Europe) program, a new initiative aimed at boosting defense readiness across member states. The decision marks a major step in the bloc’s effort to strengthen collective security while also supporting the European defense industry.
The loan will provide Athens with long-term, low-interest financing — with repayment periods of up to 45 years and grace periods of up to 10 years — giving Greece more financial flexibility as it seeks to modernize its armed forces.
According to the program’s guidelines, the funds will be directed toward the acquisition of armored vehicles, advanced air defense systems, drones, and surveillance technology. Importantly, at least 65% of the value of all equipment must be sourced from within the EU, EEA/EFTA, or Ukraine, ensuring that the investment strengthens not only Greece’s military capabilities but also the wider European defense sector.
Greece had initially requested up to €1.2 billion, but the approved package is still being hailed as a significant victory for Athens. Officials argue that the loan will accelerate key defense projects and enhance the country’s role within NATO and the EU’s evolving security framework.
The SAFE program itself reflects the EU’s growing concerns over regional security threats, including tensions in the Eastern Mediterranean and the ongoing war in Ukraine. By providing large-scale, long-term financing, Brussels hopes to ensure member states can rapidly acquire modern equipment without overburdening national budgets.
For Greece, the funding comes at a crucial time. The country has been investing heavily in defense in recent years, purchasing new fighter jets, warships, and missile systems. The EU loan will further bolster these efforts, while also fostering industrial cooperation with European and U.S. defense contractors.
Analysts note that this move underscores both Greece’s strategic importance on the EU’s southeastern flank and Brussels’ determination to reduce reliance on non-European suppliers. As the SAFE program unfolds, Greece is expected to remain one of its primary beneficiaries.