Minister of Defence sets up a working group to boost investment via SAFE

Portugal formally revealed its manifestation of interest to join SAFE, the European loan programme at favourable rates to boost defence capabilities. 

To this end, the Minister of National Defence Nuno Melo set up the SAFE working group for the development of the manifestation of interest proposal and the ensuing formal request for financial assistance.

Once this has been submitted, the SAFE working group will move on the following stage of the work it has been tasked, focusing on the technical development of the projects and drafting the formal request for financial assistance by 30 November 2025. 

This request will be submitted with a detailed investment plan for the European defence industry with a special focus on integrating the Portuguese industry in future value chains promoted by the projects funded under SAFE. 

It is under this scope that the SAFE working group has been working on, together with potential Portuguese industrial partners with a view to ensuring concrete benefits for the national Technological and Industrial Defence Base.

The Government’s aim is to use this mechanism to cover the priority necessities as identified in the three branches of the Military, assuming the leadership in two of those joint public procurement projects. 

At the same time, Portugal’s aim is to align all the investments made in this scope with NATO’s objectives, namely the capability targets undertaken by Portugal, amplifying operational capabilities identified in the strategic design of the Portuguese forces’ system and the commitments towards international order.

The projects presented by Portugal cover products eligible in categories 1 and 2 as defined by the Commission: from ammunitions, land systems and cyber capabilities to naval systems and more complex strategic capabilities.

The European Commission should unfold during August the amount of the financial package for Portugal, whereas the formal request for financial assistance will only be made in November. 

The investments to be made under SAFE represent a significant milestone in Portugal’s strategy to boost its defence capabilities, as well as an active contribution, aligned with the European Union efforts for its strategic autonomy and consolidation of a robust, resilient, and competitive industrial defence base.

Following the formal request for assistance under SAFE, which will happen by 30 November 2025, if there are no delays and following assessment by the Commission in December 2025 and formal decision by the Council of the EU in January 2026, the pre-funding amounts will start to become available in the first half of 2026. It is expected that several projects will start officially when the first sums arrive. 

SAFE  is a European Commission initiative set up to support Member States with urgent investments in the European Technological and Industrial Defence Base. 

The financial assistance envisioned will be loans with term up to 45 years, grace periods of up to 10 years, pre-funding possibility of up to 15%, and VAT exemption in the agreements entered into.