The European Commission on October 29 invited all 27 EU countries to join the second round of the SAFE defense loan program, within which 21.3 billion euros are available. Brussels calls on states to use these funds, in particular, for joint arms purchases with Ukraine.
This is stated in the European Commission's message, as reported by Italian agency Agenzia Nova.
The second round is open both to countries that have already received SAFE funding and to states that did not participate in the first stage. Participants must determine the necessary loan amounts and present their defense priorities. After the application deadline, the European Commission plans to announce the preliminary distribution of funds within two weeks.
Special emphasis is placed on defense cooperation with Ukraine. The European Commission proposes that countries include joint arms purchases with Ukrainian partners in national investment plans.
Among the priority areas identified are air and missile defense systems, drones, anti-drone means, ammunition, and missiles. Brussels calls for taking into account the urgent needs of both the Armed Forces of Ukraine and the armies of EU states.
At the same time, 21.3 billion euros is not a new military aid package for Ukraine. This refers to the unused balance of the SAFE credit mechanism totaling 150 billion euros. Borrowers are EU member states, which independently form defense investment plans and are responsible for repaying the funds received.
According to European publication Rapporteur, the remaining funding was formed, in particular, after reduction of credit requests from Hungary and Italy. At the same time, budget constraints and political situation in individual countries may complicate the distribution of the remaining funds.
Rapporteur also reports interest in additional funding from Greece, Poland, Ireland, and Romania. However, the final loan amounts will depend on applications from states and subsequent approval of their plans.
The European Commission reported that within the first stage of SAFE, loan funding was approved for 19 EU countries. With 16 countries, relevant agreements have already been signed, and 11 countries received almost 13.5 billion euros in preliminary funding.
The SAFE program was approved in May 2025 as part of the European strategy to strengthen defense capabilities by 2030. It provides long-term loans on favorable terms for expanding defense production and joint procurement. Ukrainian enterprises can participate in such projects under established rules.
