Cyprus is set to deepen defence industrial cooperation with France through programmes reportedly valued at around 800 million euros under the EU’s SAFE security funding mechanism.

The agreements fall within the broader Security Action for Europe framework (SAFE), under which the government can access up to 1.181 billion euros in borrowing for the period 2026 to 2030.

According to Simerini, of this amount, approximately 800 million euros is expected to be directed towards joint programmes with France, representing about two thirds of the total allocation.

The cooperation is linked to the recently signed Status of Force Agreement (SOFA) between Cyprus and France, which establishes a framework for expanded military collaboration, including joint exercises and the hosting of French forces on Cypriot territory.

Officials have indicated that existing infrastructure, including facilities at Mari, may be further developed to support these activities.

Speaking ahead of a visit to Paris for a defence industry exhibition, Defence Minister Vassilis Palmas said bilateral cooperation with France is continuing to expand across political and military levels.

“The timelessly excellent cooperation with France continues at the political and military level,” he said, adding that the SAFE framework provides significant opportunities for industrial collaboration.

He also confirmed that Cyprus is working to ensure local industry participation in joint production schemes.

“What we have emphasised, because we want to give a boost to the Cypriot defence industry, is that the countries with which we collaborate for the production of various armament programmes should find collaborators and partners who come from the Cypriot defence industry,” he said.

The planned co-production areas include ammunition such as artillery shells, unmanned aerial systems including loitering munitions, armoured and other military vehicles, radar systems for air and coastal defence, electronic warfare systems, and mine clearance technologies.

Simerini’s report further referenced participation in next generation drone systems developed in cooperation with Greece.

The SAFE mechanism is designed to support European defence capability through EU-level borrowing on financial markets, with funds issued at comparatively low interest rates due to the Union’s credit rating.

Repayment periods can extend up to 45 years, with initial years focused on interest payments before capital repayment begins.

The programme is intended not only to strengthen military capability but also to support technological development and industrial cooperation within Cyprus and the wider European defence sector.

Cyprus participates in the programme as an EU member, while third country involvement in related supply chains is subject to regulatory controls under EU legislation governing defence procurement and foreign investment screening.