The European Commission has announced a significant €21.3 billion funding round under its Security Action for Europe (SAFE) programme, aimed at strengthening defence capabilities across the European Union and providing crucial support to Ukraine. This funding, part of the broader €150 billion SAFE initiative, underscores the EU’s commitment to bolstering its military readiness and production capacity.
Officially launched on October 29, the initiative is a continuation of the EU’s Readiness 2030 defence programme. It offers long-term loans to the 27 EU member states, encouraging them to undertake joint procurement projects that address urgent defence needs, including those identified in Ukraine. EU Defence Commissioner Andrius Kubilius has highlighted air and missile defence systems, drones, counter-drone technology, and ammunition as key priorities for Kyiv.
Member states have until November 13 to submit their applications for funding. The European Commission has committed to announcing provisional funding allocations within two weeks of this deadline, with the expectation that approved projects will be fully implemented by June 30, 2027.
This round of funding follows an initial cycle where 19 EU countries applied for approximately €130 billion in loans. Some nations, like Hungary, Italy, and France, later reduced their borrowing requests, allowing additional funds to be made available for the current round. Notably, Hungary decreased its planned application from €16.4 billion to €5.4 billion due to changes in its government.
In the first funding round, Poland emerged as the largest applicant with a request for €43.7 billion. The country is expected to seek further support to continue expanding its defence capabilities. Meanwhile, countries such as Ireland and Greece are considering participation in the latest round.
While some nations, including Germany and the Netherlands, opted out of the previous funding cycle due to more favorable national financing options, the new funding aims to enhance Europe’s defence industry and meet Ukraine’s pressing military needs through coordinated investments.