EU opens €21.3 billion defense loan round, urges joint procurement with Ukraine
The European Commission has opened a second round of defense financing worth €21.3 billion under its SAFE program, encouraging EU member states to include joint procurement projects with Ukraine in their investment plans.
European Commission spokesperson Thomas Regnier announced the move at a briefing in Brussels on October 29, according to Radio Free Europe/Radio Liberty.
The Commission urged member states to prioritize the most urgent needs of Ukrainian and European armed forces, particularly air and missile defense systems, drones and counter-drone technology, ammunition and missiles.
However, participation in joint projects with Ukraine is not mandatory, and the €21.3 billion is not earmarked exclusively for Ukrainian military assistance.
"We unequivocally encourage our member states to do everything possible to implement joint projects so that these remaining funds can benefit not only national defense industries but also Ukraine under the current circumstances," Regnier said.
He emphasized that SAFE loans are taken out by individual EU member states, which retain control over how the funding is used within the program's rules.
The €21.3 billion represents unallocated funds from SAFE's existing €150 billion lending program, approved in May 2025 to accelerate defense procurement and strengthen Europe's military capabilities.
The money became available for a second round after some participating countries requested smaller loans than initially anticipated.
Nineteen EU countries have joined SAFE. Loan agreements have been approved for all 19, with 16 already signed.
The Commission hopes member states will apply for the full remaining amount. It plans to announce preliminary allocations within two weeks of the application deadline, after which countries can submit additional defense investment plans for assessment.
Ukraine has been eligible to participate in joint procurement projects under SAFE since the program was established, including through purchases from Ukrainian defense manufacturers.