EU’s SAFE Program Reshapes Defense Procurement Landscape, Challenging Korean Arms Exports

Summary – The EU’s Strategic Autonomy and Foreign Engagement (SAFE) program prioritizes European defense companies in procurement, impacting South Korean arms sales in Poland and other markets.,

Article –

The European Union (EU) has introduced the Strategic Autonomy and Foreign Engagement (SAFE) program, which prioritizes European defense companies in procurement processes, significantly impacting international suppliers such as South Korea. This program aligns with the EU’s strategic goals to strengthen its domestic defense industry and reduce reliance on non-European defense manufacturers.

Key Involved Parties

The following entities play critical roles in the SAFE program:

• European Commission – the executive body implementing the program.
• European Defence Agency (EDA) – coordinates defense cooperation among member states.
• National defense ministries of EU member states like Poland – responsible for procurement decisions.
• South Korea – an affected major global defense exporter with previously expanding contracts in Europe.

Program Objectives and Timeline

The SAFE program, developed during 2023 and launched in early 2024, aims to:

1. Prioritize procurement from European defense firms.
2. Support domestic arms manufacturers through preferential policies.
3. Invest in expanding European defense industrial capabilities.

This shift is evident in Poland’s recent defense contracts favoring European companies over South Korean suppliers.

Official Views and Data

Thierry Breton, EU Commissioner for Internal Market, stated that SAFE “reinforces the EU’s commitment to enhancing our defense autonomy by ensuring procurement supports European industry, innovation, and strategic interests.” The EDA further highlighted stricter evaluations favoring EU-aligned companies, which increases challenges for non-EU suppliers.

Consequences of the SAFE Program

• Economic: South Korea and other non-European firms face hurdles in securing EU defense contracts, reducing their market share.
• Political: The initiative supports EU strategic autonomy amid global geopolitical tensions, including the Ukraine conflict and rivalry with China and the US.
• Social: Expected job preservation and creation within the European defense sector via bolstered domestic production.

Reactions and Future Outlook

France, Germany, and Poland have expressed support for the SAFE program, aligning procurement to EU defense objectives. South Korean officials, while disappointed, are engaging with EU representatives to explore cooperation opportunities such as technology partnerships and joint ventures.

Looking ahead, the European Commission and EDA will monitor the program’s effectiveness throughout 2024, adjusting procurement rules and encouraging collaboration with international partners who adapt to the framework. Additional EU funding may support innovation and multilateral development projects that accommodate cooperation within the new priorities.

About The Author