Finland plans to use €1 billion in loan financing from the EU’s Security Action for Europe (SAFE) instrument over 2026–2030 to support defence procurement and strengthen key military capabilities.
- The EU’s SAFE instrument provides up to €150 billion in loans to member states, primarily supporting joint procurement from European and Ukrainian defence industries.
- On September 24, 2026, the Finnish government approved the SAFE loan agreement and authorised Finance Minister Riikka Purra to sign it.
- Finland intends to use the financing for multinational procurement projects that strengthen its ground combat capabilities, alongside the development of drone and counter-drone capabilities.
- Finland also intends to seek SAFE financing for the Finnish Defence Forces’ existing procurement of synthetic aperture radar (SAR) satellites manufactured by ICEYE. The satellites are designed to strengthen Finland’s independent space-based intelligence and surveillance capabilities.
- Drone and counter-drone development will involve cooperation with Ukraine and allied countries, with the Finnish Ministry of Defence highlighting Ukraine’s operational experience and expertise in the field.
- For Finnish defence companies, the government said SAFE could help secure more orders from partner countries and strengthen the recognition of Finnish projects within EU defence industrial policy.
