EU opens second SAFE defence funding round worth €21.3 billion
The European Commission has announced a second SAFE funding round with a budget of €21.3 billion and urged EU member states to consider joint defence procurement with Ukraine. The funds are credit instruments for EU countries rather than a separate aid package for Ukraine, and Ukraine’s participation is not mandatory.
Key points
- The second SAFE round has a budget of €21.3 billion.
- The round was announced on 29 October 2026.
- All EU member states may apply for the second competition.
- The Commission urges states to include joint procurement with Ukraine in their investment plans.
- Priority areas include air and missile defence, drones, counter-drone systems, ammunition and missiles.
- Preliminary allocations will be communicated within two weeks after the application deadline.
- SAFE is part of the EU’s €150 billion long-term loan programme adopted in May 2025.
Why it matters
The second round could direct substantial defence resources toward the needs of both Ukrainian and EU armed forces through joint procurement. It also advances the SAFE programme and the EU’s Readiness 2030 strategy for stronger defence capabilities, readiness, resilience and a more capable European defence industry.
What happened
On 29 October, the European Commission announced a second SAFE defence funding round with a €21.3 billion budget. EU member states can apply for the funding and are encouraged to include joint defence procurement with Ukraine in their national investment plans. The Commission identified air and missile defence, drones, counter-drone systems, ammunition and missiles as priority categories for meeting the needs of Ukrainian and EU armed forces. It will provide member states with a preliminary allocation within two weeks after the application deadline.
How Ukrainian sources describe it
Ukrainian coverage highlights the recommendation to direct SAFE funding toward joint procurement with Ukraine and the potential benefit for the Armed Forces of Ukraine. It also stresses that the financing is not a separate Ukrainian aid package and that Ukraine’s participation is not a condition for EU states receiving SAFE funding.
Background
SAFE was adopted in May 2025 as a long-term EU lending programme worth €150 billion. EU member states submitted defence-industry development plans in October 2025, with some requesting less than initially agreed. The EU approved credit agreements with 19 member states that joined SAFE, signed agreements with 16, and provided nearly €13.5 billion in advance financing to 11 countries.