Defence Finance Monitor

Defence Finance Monitor

EU Sets 35% Limit on Non-European Components in SAFE Procurement Contracts

Jul 31, 2025
∙ Paid

three european flags flying in front of a building
Photo by Carl Gruner on Unsplash


The question of Europe’s technological sovereignty has moved from abstract debate to concrete regulation. As the global balance of power increasingly hinges on control over strategic technologies and secure supply chains, the European Union is under pressure to reduce its dependency on external suppliers in sensitive industrial sectors. From defense and aerospace to semiconductors and critical raw materials, the Union’s reliance on third-country inputs exposes it to both geopolitical coercion and systemic vulnerabilities. In this context, procurement policies have emerged as a key instrument of industrial policy. The capacity to direct public funding towards projects that reinforce internal value chains is now viewed not merely as economic strategy but as a matter of security and resilience.

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