EU Allocates €150 Billion in SAFE Defense Loans, 13 States Plan Ukraine Aid

The European Commission has completed the allocation of €150 billion under the Security Actions for Europe (SAFE) program – a joint borrowing initiative designed to strengthen Europe’s defense industry and prepare for future threats from Russia.

The Gaze reports this, referring to Suspilne.

Announcing the decision on September 9, European Commissioner for Defense Andrius Kubilius said 19 member states will share the funds, with 13 explicitly planning to use part of their allocations to support Ukraine. 

“Most member states that applied indicated their intention to direct SAFE loans toward Ukraine. While precise amounts remain to be determined, we expect SAFE to become a cornerstone of assistance in this area,” Kubilius noted.

Interest in the scheme far outstripped the available resources, leading to modest reductions in some allocations. 

Poland secured the largest share at €43.7 billion, followed by Romania (€16.7 billion), Hungary and France (each €16.2 billion), and Italy (€14.9 billion). Smaller portions will go to Belgium, Lithuania, Portugal, Latvia, and others. Eight EU states did not apply, citing their ability to borrow independently on similar terms.

Member states must now submit detailed spending plans by the end of November, with the European Commission expected to approve the first disbursements in early 2026.

Funding will target three priority areas:

– joint defense projects, including missile defense systems and the “Eastern Defense Shield,” where Ukraine is set to contribute expertise in drone warfare and anti-mobility engineering;

– strategic enablers, such as secure communications, satellite reconnaissance, and heavy-lift logistics to reduce Europe’s reliance on U.S. capabilities;

– mass production of critical hardware, including tanks, artillery, and other heavy weapons.

SAFE loans are offered on highly favorable terms, with low interest rates and a 10-year grace period. They also permit contracts with non-EU partners, including the UK, Norway, and Turkey, to expand procurement options.

The program, first proposed by the European Commission in March 2025, represents the EU’s most ambitious step yet to pool defense financing across the bloc. 

As The Gaze previously reported, French President Emmanuel Macron announced that 26 countries are prepared either to deploy contingents to Ukraine or to provide other forms of support as part of a multinational effort to guarantee the country’s security.