How the EU’s €150 B SAFE Fund Could Reshape Supply Chains for Mid-Sized Defence Contractors

In late May 2025, EU member states formally launched the €150 billion Security Action for Europe (SAFE) fund, a landmark joint borrowing initiative designed to strengthen the bloc’s collective defence capabilities. By pooling resources, the EU aims to speed up bulk purchases of high-demand military equipment, including air defence systems, drones, artillery, and advanced cyber tools. For mid-sized defence contractors and flexible suppliers, SAFE represents both opportunity and challenge. Larger pooled orders mean longer pipelines for firms able to scale production, integrate into consortiums, and meet strict EU sourcing requirements. Smaller firms without adaptable delivery models or regional partners may find it harder to participate.

Through Atlas⁰⁷ | Industries and Atlas⁰⁷ | Build, we stay ready to connect high-quality equipment supply and construction capabilities to larger cross-border programmes, positioning ourselves to support manufacturing, logistics, and on-site solutions that SAFE- backed projects demand. As the EU’s pooled procurement evolves, Atlas⁰⁷ will continue helping clients navigate how collective funds reshape large-scale defence supply chains.