Cyprus has officially submitted its declaration of interest to participate in the European Union’s new defence funding mechanism, the security Action for Europe (SAFE), Defence Minister Vasilis Palmas confirmed on Tuesday.

Speaking to the Cyprus News Agency, Palmas said the Ministry of Defence had submitted its formal expression of interest to the relevant EU committee, marking a key step in Cyprus’ participation in the €150 billion programme.

The SAFE initiative, launched by the European Commission, aims to strengthen the EU’s defence capabilities through joint military procurement and low-interest loans to member states for the purchase of defence equipment. These loans will be facilitated through the European Investment Bank under favourable terms.

“This development creates conditions for the growth of the Europe’s defence industry and allows EU member states to boost their defensive capabilities,” Palmas said. He noted that the war in Ukraine and increasing threats from Russia have made it clear how essential a strong European defence is.

He added that the Cypriot government is working closely with the finance ministry to ensure that any loan acquired under SAFE does not burden the national debt, which remains one of the healthiest in the EU.

Cyprus will submit a detailed implementation plan by November 30, including the amount requested, national defence needs and the programmes it wishes to join. Final approval will be granted by EU authorities following this submission.

Palmas also noted that the regulation is voluntary and not all EU member states are required to participate. However, Cyprus sees it as an opportunity to enhance both national security and local defence industry growth.

SAFE funding will be distributed under specific conditions, with 60 per cent reserved for the EU’s three largest economies – France, Germany and Italy – while the remaining funds are available to other eligible countries, including Cyprus.