The European Commission has initiated a new €21.3 billion funding round under the Security Action for Europe (SAFE) programme, aimed at enhancing defense capabilities across the European Union and supporting Ukraine. Announced on October 29, this round of funding is part of the larger €150 billion SAFE initiative, introduced in May 2025 as part of the EU’s Readiness 2030 defense strategy. The funds are available to all 27 EU member states and are intended to facilitate defense investments and increase military production capacity.
The Commission encourages EU member states to utilize these funds for joint procurement projects that address pressing defense needs, including those of Ukraine. EU Defence Commissioner Andrius Kubilius highlighted the importance of air and missile defense systems, drones, counter-drone technology, and ammunition as key priorities for assisting Kyiv. Member states have until November 13 to submit their applications, with provisional funding allocations expected to be announced within two weeks of this deadline. Approved projects must be completed by June 30, 2027.
This funding round follows an initial cycle where 19 EU countries applied for approximately €130 billion in loans. Some countries, such as Hungary, Italy, and France, later reduced their borrowing requests, making additional funds available for the current round. Hungary, for instance, decreased its application from €16.4 billion to €5.4 billion following a change in government.
While countries like Germany and the Netherlands opted out of the first round due to lower borrowing costs through their national financing systems, Poland emerged as the largest applicant, seeking €43.7 billion. Poland is anticipated to apply for further support to continue expanding its defense capabilities. Other countries, including Ireland and Greece, are also considering participation in this new funding cycle.
The overarching goal of this funding round is to fortify Europe’s defense industry while simultaneously addressing Ukraine’s urgent military needs through coordinated procurement and strategic investment. The European Commission’s initiative underscores the EU’s commitment to bolstering its defense infrastructure while providing essential support to Ukraine in the face of ongoing challenges.