The European Commission has initiated a €21.3 billion funding round aimed at bolstering the defence capabilities of its 27 member states while prioritizing support for Ukraine. Announced on October 29, this funding marks the second phase of the Security Action for Europe (SAFE) programme, which is part of the broader €150 billion EU Readiness 2030 defence strategy.
The funds are intended to address urgent defence needs through joint procurement projects, with a focus on providing Ukraine with crucial military resources. EU Defence Commissioner Andrius Kubilius emphasized the importance of air and missile defence systems, drones, counter-drone technology, and ammunition for Ukraine’s defence strategy.
EU member states have until November 13 to submit their applications for the funding, with provisional allocations expected to be announced two weeks later. Approved projects are required to be completed by June 30, 2027. This funding round follows an initial phase where €130 billion in loans was requested by 19 member countries, though some, like Hungary, Italy, and France, later scaled back their requests, freeing up additional funds for this cycle.
Notably, countries such as Germany and the Netherlands previously opted out of the initial funding round, choosing instead to rely on their national financing options due to lower borrowing costs. Poland emerged as the largest applicant in the first phase, with a request of €43.7 billion, and is anticipated to seek further funding to enhance its defence capabilities.
The initiative aims to strengthen the European defence industry while supporting Ukraine’s military needs, reflecting a coordinated effort by the EU to enhance its collective security framework. Other EU countries, including Ireland and Greece, may also consider applying for the latest round of funding to meet their defence requirements.