Nicosia — June 3, 2026 — Cyprus has signed a landmark agreement with the European Commission granting access to €1.18 billion in defense financing under the EU’s SAFE program, a central pillar of the bloc’s ReArm Europe / Readiness 2030 strategy.
EU Defense Commissioner Andrius Kubilius confirmed that Cyprus is the sixth member state to join SAFE, which aims to strengthen Europe’s defense capabilities and industrial base. Initial funding of €177.2 million will begin flowing soon to support Cyprus’ armed forces and defense industry.
The financing will be divided into two categories. The first covers ammunition, artillery, land combat systems, soldier gear, cybersecurity, and protection of critical infrastructure. The second focuses on advanced capabilities such as air and missile defense systems, drones and anti-drone technologies, naval assets, AI, electronic warfare, and space-based services. Strict eligibility rules require that at least 65% of components originate from within the EU, EEA, EFTA, or Ukraine.
SAFE is part of the EU’s broader ReArm Europe plan, designed to mobilize more than €800 billion in defense spending. The initiative includes joint procurement projects to reduce duplication, improve interoperability, and achieve economies of scale. While joint projects are the norm, single-country procurement will be temporarily allowed given current geopolitical pressures.
For Cyprus, the agreement represents a major step in modernizing its defense capabilities while boosting its domestic defense industry. It also strengthens cooperation with trusted partners and aligns with NATO coordination efforts.
