The European Commission has announced the launch of a €21.3 billion funding round under its Security Action for Europe (SAFE) programme, aimed at bolstering the defence capabilities of the European Union’s 27 member states and providing support for Ukraine. This initiative, revealed on October 29, is part of the broader €150 billion SAFE initiative, which was introduced in May 2025 under the EU’s Readiness 2030 defence programme.
The funding is intended to accelerate defence investment across Europe and enhance military production capacity. EU Defence Commissioner Andrius Kubilius highlighted the significance of this funding, urging member states to prioritize joint procurement projects that address urgent defence needs, including those of Ukraine. The focus areas for Kyiv include air and missile defence systems, drones, counter-drone technology, and ammunition.
Member states have until November 13 to submit their applications for the funding, with provisional allocations expected to be announced within two weeks of the deadline. Projects approved through this funding must be fully implemented by June 30, 2027. This round follows an initial cycle in which 19 EU countries applied for loans totaling approximately €130 billion, although some countries later reduced their requests, leaving additional funds available for the current round.
For instance, Hungary decreased its planned application from €16.4 billion to €5.4 billion following a change in government. Similarly, Italy and France borrowed less than initially anticipated, contributing to the availability of additional funds. In contrast, countries like Germany and the Netherlands opted out of participation in the previous round due to more favorable borrowing costs available through their national financing mechanisms.
Poland emerged as the largest applicant in the first funding cycle, requesting €43.7 billion, and is anticipated to seek further support to expand its defence capabilities. Other nations, such as Ireland and Greece, are also contemplating applications in the latest round.
The overarching goal of this funding cycle is to strengthen Europe’s defence industry and address Ukraine’s urgent military requirements through coordinated procurement and investment. The European Commission’s strategic initiative underscores the EU’s commitment to enhancing collective security and supporting member states in bolstering their defence systems.