Michael Healy-Rae (Kerry, Independent)

I am responding on behalf of the Tánaiste and Minister for Defence, who unfortunately cannot be present. On his behalf, I welcome the opportunity to respond on this matter and thank Senator Conway for his question.

The SAFE instrument, which entered into force on 29 May 2025, is an EU instrument designed to provide financial assistance to member states and support their urgent public investments in defence industrial production, aiming to increase production capacity, improve the availability of defence products and address capability gaps, particularly by engaging in joint acquisitions where appropriate.

SAFE is a component part of the broader ReArm Europe plan, which outlines concrete legal and financial means to support the defence investments of member states. Ireland is signing up to this new EU defence initiative and it is anticipated that such participation will speed up the delivery of defence capabilities. By leveraging common procurement opportunities, the SAFE regulation will enable EU member states to focus on priority defence areas and address capability gaps.

Significant progress has been made in implementing the required transformation for the Defence Forces, as set out by the Commission on the Defence Forces. Furthermore, the programme for Government committed to significant investment in defence capabilities. The new SAFE instrument has the potential to assist us in achieving further progress in this area.

As with other European member states, Ireland has significant capability gaps that need to be filled. The SAFE mechanism may provide us with the ability to fill those gaps through joint procurement where there is alignment with other member states. Procuring equipment and materiel with other member states will minimise potential barriers for accessing supply chains while also achieving economies of scale.

It is important to note that Ireland will continue to make its own decisions regarding what capabilities we require, and we will acquire these based on our national defence policy. Participation in the SAFE mechanism has no impact on Ireland’s neutrality.

The financial assistance from SAFE, which amounts to some €150 billion in demand-driven loans, will support member states that wish to invest in defence industrial production through common procurement, focusing on priority capabilities, ultimately strengthening the EU's overall defence readiness. However, there will be no requirement for member states to engage with the initiative should they not wish to do so.

The SAFE initiative offers a derogation from procurement rules that will allow existing framework agreements or contracts held by member states to be modified to add new contracting authorities, provided that the eligibility conditions for common procurement are met. Ireland may draw value regarding efficient procurement of needs within the Defence Forces’ existing detailed equipment development plan.

The programme for Government has committed to increasing investment in the nation’s defence and security. The provision of funding and the political support necessary to achieve level of ambition 2, LOA 2, enhanced capability, and move as quickly as possible to level of ambition 3, with commensurate investment as appropriate, have been clearly outlined. The SAFE instrument has the potential to support and assist Ireland in achieving this commitment.