Europe Launches $24 Billion Round of SAFE Funding, Focus on Ukraine

SAFE stands for Security Action for Europe. Launched in May last year, it provides EU-backed defense loans that countries repay over an extended period. It is a central part of the EU’s “Readiness 2030” initiative and aims to strengthen Europe’s defense capacity.

The new funding round offers €21.3 billion to all 27 EU Member States. The European Commission wants governments to use it for joint procurement, especially projects addressing Ukraine’s urgent needs as well as their own defense requirements. Air and missile defense, drones, counter-drone systems, and ammunition are named priorities.

This round comes from the original €150 billion SAFE program approved by EU members. It became available partly because several countries borrowed less than expected. Governments that receive funding must announce and fully implement their approved projects by June 30, 2027.

The European Commission’s second SAFE funding round offers €21.3 billion, or about $24 billion according to the article. It is open to every EU Member State, giving all 27 governments the opportunity to seek a share of the available funds.

The round is part of the original €150 billion SAFE program approved by EU members. In percentage terms, €21.3 billion is about 14% of that overall amount. The new money is not a separate program; it is an additional funding cycle within SAFE, created after some first-round borrowing plans were reduced.

The comparison also shows the scale of the first cycle. Nineteen countries submitted bids last November, totaling around €130 billion, and all were approved. However, only 16 had signed agreements with the Commission, while about €13.5 billion had gone to 11 countries requesting pre-financing.

The second SAFE call is open to all 27 EU Member States. This broad eligibility includes countries that did not apply for SAFE loans during the previous round, as well as countries that already received or sought first-round support.

After applications are submitted, the Commission plans to announce tentative allocations within two weeks of the deadline. The article identifies November 13 as the expected submission deadline. Countries whose projects are approved must then announce them and complete their implementation by June 30, 2027.

The timing gives governments a limited period to turn loans into actual defense projects. The article expects only a few countries to use this round, naming Ireland, Greece, and Poland as likely applicants. Poland is already SAFE’s largest user and may bid again while expanding its defense forces.

Defense Commissioner Andrius Kubilius identified four urgent capability areas for Ukraine: air and missile defense systems, drones, counter-drone systems, and ammunition. The European Commission wants these needs considered in joint procurement projects funded through SAFE.

The priorities cover different battlefield functions. Air and missile defenses protect forces and infrastructure from attacks. Drones provide military capabilities, while counter-drone systems help respond to hostile unmanned aircraft. Ammunition supports sustained military operations. The article does not provide specific quantities or models.

These priorities are part of a wider request that countries use SAFE money for Ukraine’s needs alongside their own defense requirements. By linking both objectives in shared projects, the EU hopes the funding can support Ukraine while accelerating Europe’s defense industry. Projects still have to be announced and implemented by June 30, 2027.

SAFE can strengthen Ukraine’s armed forces by financing joint purchases of the systems Kyiv urgently needs. The Commission specifically highlights air and missile defenses, drones, counter-drone systems, and ammunition. These purchases would supplement countries’ own defense requirements rather than replace them.

The same orders can support Europe’s defense industry. When several governments purchase together, companies receive larger and more coordinated demand instead of many small national orders. That can help accelerate production and direct additional money toward European defense manufacturing. The article quotes spokesperson Thomas Regnier saying the leftover funds can benefit national defense industries and Ukraine at the same time.

The immediate opportunity comes from unused borrowing capacity after some countries reduced their applications. The longer-term result depends on which projects governments propose and whether they deliver them by June 30, 2027. The article expects Poland and a few other states to make further use of SAFE.

Several countries borrowed less than anticipated, leaving money available for the second round. The article specifically points to Italy, Hungary, and France. Hungary’s government reduced its application from €16.4 billion to €5.4 billion, confirming the lower figure in September.

Other governments avoided SAFE altogether because they believed they could borrow more cheaply on their own. Eight EU countries, including Germany and the Netherlands, did not apply in the first round. Their concern was that common EU debt arrangements would cost more than national borrowing for them.

This produced an uneven first round. Nineteen Member States submitted bids totaling around €130 billion, and all were approved, but only 16 had signed agreements with the Commission. About €13.5 billion was allocated to 11 countries that requested pre-financing. The unused capacity now creates room for another call, although the article expects only a few applicants.

Joint defense procurement means countries coordinate purchases instead of ordering separately. They can define shared requirements, combine demand, and buy equipment through common projects. Common EU borrowing means financing is raised through EU-level debt arrangements, which can then support loans to Member States. These mechanisms connect national defense plans.

In general, combining orders can improve bargaining power, reduce duplication, and give manufacturers clearer demand. Shared borrowing can spread financing across participating countries and support projects that might be harder to fund alone. SAFE uses long-term loans, so countries repay the money over an extended period. The article does not specify SAFE’s interest rates or detailed procurement rules.

The benefits are not identical for every government. Germany and the Netherlands, among six other countries, skipped the first round because they believed national borrowing would be cheaper. SAFE is therefore most useful where joint demand, shared financing, or support for Ukraine outweighs the advantages of acting alone.