EU urges member states to tap €21.3 billion SAFE fund to boost defence, support Ukraine
The Commission wants member states to pair the loans with joint projects that include Ukraine, especially for air defense, drones and ammunition.
- On Thursday, the European Commission reopened €21.3 billion in unused Security Action for Europe defense loans, urging member states to prioritize joint procurement projects with Ukraine for missiles, drones, and ammunition.
- Eight European Union countries, including Germany and the Netherlands, opted out of the initial SAFE program because they can secure cheaper financing independently, leaving a substantial surplus of unused funds.
- Although the Commission encourages integrating Ukrainian firms into defense supply chains, it lacks legal authority to force member states to include them, since the loans are sovereign debt taken out for national defense.
- European Defence Commissioner Andrius Kubilius rejected an appeal from Baltic states for €500 million in direct drone support, suggesting they instead borrow through the newly reopened SAFE loan instrument.
- With the application window closing November 13, the Commission remains cautiously optimistic about steering funds toward Kyiv, though these loans offer only a partial solution to Ukraine's projected €70 billion financing gap for 2027.
11 Articles
11 Articles
Brussels hopes its defence loans may help plug Ukraine’s budget hole
The European Commission has reopened €21.3bn in unspent SAFE defence loans, urging EU governments to use them for joint projects with Ukraine, which faces a €70bn budget gap. Brussels cannot force them, but hopes the joint procurement rules will steer some of the money to Kyiv.
New funding forms part of bloc's broader plan to boost its military readiness
The budget of the European Union did not contain any funds, as the current budget period was coming to an end.
The European Commission (EC) called on EU States to urgently take underutilized military credit resources under the EU SAFE remilitarization programme, as announced by the EC official Tom Rainier today, 29 October.
Brussels rejects Baltic states’ €500 million anti-drone request, suggests borrowing
The European Commission has responded to a request by Lithuania, Latvia and Estonia for 500 million euros to develop anti-drone defences, but has offered no new funding on the scale sought by the three Baltic states.
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