The European Commission has initiated the second round of funding under its Security Action for Europe (SAFE) programme, allocating €21.3 billion (around $24 billion) to enhance defence capabilities across the European Union and support Ukraine. Announced on October 29, this funding round is part of the broader €150 billion SAFE initiative, launched in May 2025 under the EU’s Readiness 2030 defence programme.
This initiative seeks to provide long-term loans to EU member states to expedite defence investments and bolster Europe’s military production capacity. The European Commission has urged nations to focus on joint procurement projects that address urgent defence needs, including those of Ukraine. Key priorities for Kyiv highlighted by EU Defence Commissioner Andrius Kubilius include air and missile defence systems, drones, counter-drone technology, and ammunition.
EU member states interested in this funding must submit their applications by November 13, with provisional funding allocations to be announced within two weeks of the deadline. Approved projects are expected to be announced and completed by June 30, 2027. This funding cycle follows an initial round where 19 EU countries applied for approximately €130 billion in loans. Some nations reduced their borrowing requests, leaving additional funds for the current round.
Hungary notably decreased its planned application from €16.4 billion to €5.4 billion due to a change in government, while Italy and France also borrowed less than originally anticipated. This reduction has contributed to the availability of additional funding. In the first round, Poland was the largest applicant, requesting €43.7 billion, and is anticipated to seek further support to expand its defence capabilities in this latest round. Other countries, like Ireland and Greece, may also consider applying.
Not all EU countries chose to participate in the initial funding cycle. Both Germany and the Netherlands opted out, citing lower borrowing costs through their national financing arrangements. The current funding cycle aims to strengthen Europe’s defence industry and support Ukraine’s pressing military needs through coordinated procurement and investment strategies.