The accession of Cyprus to the SAFE Programme of the European Union with a financial contribution of €1.2 billion was announced by the Cypriot Government Spokesman Konstantinos Letibiotis, underlining that the decision assumes particular importance in the international context. The European Commission proceeded on 9 September to distribute the amounts to the member states.

The SAFE is the new European financial instrument to directly enhance the defence readiness of Member States through soft loans for joint procurement and investment in the European defence industry. It was adopted on 27 May 2025 and entered into force after its publication in the Official Journal of the EU. It is a package of loans of up to €150 billion, with a long maturity and grace period, aimed at closing critical defence capability gaps.

Cyprus’ share and timeline

According to the Commission decision, Cyprus’s share amounts to €1,181,503,924. Member States have to submit their national investment plans by the end of November 2025 in order to start disbursements from 2026. Nicosia notes that the average annual utilisation rate for the five years is estimated at around €220-230 million, adjusted to the needs of the Cyprus National Guard.

The Cypriot Ministry of Defence, in cooperation with the General Staff of the National Guard (GEF) , is finalising the list of programmes to be included in the national plan by 30 November. Priority is given both to meeting operational needs and strengthening the domestic defense industry, with the aim of extroversion and participation in European production chains.

Bilateral dimension with the USA: EDA and FMS

Alongside the European strand, Nicosia is taking advantage of Cyprus’s membership in the US Excess Defense Articles and Foreign Military Sales programs. With the Presidential Memorandum of January 15, 2025, the US made Cyprus fully eligible for direct procurement and access to surplus defense materials. The development was confirmed by the White House and the US Embassy, while Cypriot sources note that technical teams will examine available systems on the ground.

In the same context are interventions to upgrade the “Andreas Papandreou” air base in Paphos and the naval base at “Evangelos Florakis” in Mari, with technical and possibly financial contributions from the US and the EU, the Cyprus Defence Ministry has said.

Turkish involvement and “safeguards”

Asked to comment on Turkey’s possible participation in SAFE, the Cypriot Government Spokesman said that nothing has changed in terms of the provisions for third countries and referred to “safeguards”, making specific reference to Article 16, which allows for the exclusion of participants when the security interests of a member state or the EU are violated.

He also recalled that access by a candidate state requires the conclusion of a specific agreement with the EU. In the regulatory framework, third country participation requires institutional security and defence agreements and is subject to strict eligibility rules and supply chain security checks.