The scheme allows EU states to fund large ammunition purchases through centralised, low-cost European borrowing
Slovakia has become the first EU member state to activate the Security Action for Europe (SAFE) defence financing facility for live procurement, signing a seven-year ammunition supply agreement with ZVS Holding, the Slovak ammunition producer owned by Czech defence group Czechoslovak Group (CSG) for a €58bn programme.
The agreement allows other EU countries to purchase ammunition through Slovakia while drawing on financing from SAFE, a €150bn EU lending programme created to support defence procurement and industrial expansion. Rather than negotiating individual supplier contracts, participating states will be able to place orders under the Slovak government’s procurement structure.
The arrangement was announced by Slovak defence minister Robert Kaliňák, who said the structure enables participating countries to access EU-backed financing while retaining national control over procurement decisions. He added that negotiations are already under way with several member states interested in joining the scheme.
The supply programme covers 155mm artillery rounds, 120mm tank ammunition and 30–35mm cannon shells manufactured at ZVS’s Dubnica nad Váhom production facility. The headline €58bn figure reflects the maximum potential production value over seven years rather than firm orders already placed.
SAFE operates as a central EU borrowing instrument, allowing the European Commission to raise funds on capital markets and lend to participating countries at lower interest rates than those available through national debt issuance. Slovakia has indicated plans to draw up to €2.3bn from the facility, of which €38.5m is earmarked for its own armed forces.
The Slovak government said additional EU member states can opt into the structure on a government-to-government basis, allowing them to channel ammunition purchases through the Slovak contract while accessing SAFE financing.
ZVS is jointly controlled by the Slovak state and CSG, the Prague-based defence industrial group controlled by Czech entrepreneur Michal Strnad. The company reported revenue of €4.5bn in the first nine months of 2025, up sharply from prior years, with an order backlog of €14bn.
Ammunition production now represents around 2% of Slovakia’s GDP, reflecting the country’s expanding role in Europe’s defence industrial base.