The European Commission has initiated the second funding round of its Security Action for Europe (SAFE) programme, unveiling €21.3 billion (around $24 billion) to bolster defence capabilities across the European Union. The announcement, made on October 29, is part of the larger €150 billion SAFE initiative introduced under the EU’s Readiness 2030 defence programme. The funding aims to enhance military production and investment within the EU and is particularly focused on supporting Ukraine’s defence needs.
EU Defence Commissioner Andrius Kubilius emphasized the importance of using this funding for joint procurement projects that address urgent defence requirements, including air and missile defence systems, drones, counter-drone technology, and ammunition for Ukraine. Member states are encouraged to apply for these funds by November 13, with the European Commission planning to announce provisional allocations shortly thereafter. Projects approved in this round must be fully executed by June 30, 2027.
This funding cycle follows an initial round where 19 EU countries applied for loans totaling approximately €130 billion. Some countries, including Hungary, Italy, and France, have since reduced their borrowing requests, freeing up additional funds for the current round. Hungary, for example, lowered its application from €16.4 billion to €5.4 billion due to changes in its government.
While Poland was the largest applicant in the first round, seeking €43.7 billion, it is likely to pursue further support to continue expanding its defence capabilities. Other countries like Ireland and Greece may also consider applying for the latest funding. However, nations such as Germany and the Netherlands opted out of the initial round, citing more favorable borrowing conditions through their national financing mechanisms.
The overarching goal of the SAFE programme is to fortify the European defence industry while meeting Ukraine’s pressing military needs through coordinated investment and procurement efforts. This initiative reflects the EU’s strategic focus on enhancing its defence readiness and fostering collaborative efforts among member states. The European Commission’s approach underscores the importance of solidarity and shared responsibility in addressing regional security challenges.