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EU urges member states to tap €21.3 billion SAFE fund to boost defence, support Ukraine - Finance news and analysis from Global Banking & Finance Review
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EU urges member states to tap €21.3 billion SAFE fund to boost defence, support Ukraine

Published by Global Banking & Finance Review

Posted on October 29, 2026

1 min read

· Last updated: October 29, 2026

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EU Commission Urges Use of €21.3 Billion SAFE Fund to Strengthen Defence

European Commission Calls for Action on SAFE Defence Funding

BRUSSELS, Oct 29 (Reuters) - The European Commission urged member states on Thursday to apply for loans from a €21.3 billion ($23.74 billion) pot available through the European Union's SAFE defence funding programme to boost their own forces and support Ukraine.

Joint Procurement Initiatives

• The Commission encouraged member states to launch joint procurement programmes with Ukraine, using funds from SAFE's second round

Priority Areas for Defence Spending

Urgent Needs of Armed Forces

• Member states should prioritise the urgent needs of Ukrainian and their own armed forces in air and missile defence systems, drones and counter-drone systems, ammunition and missiles, the Commission said

About the Security Action for Europe Instrument

Joint Borrowing Scheme

Boosting Defence Capabilities

• The Security Action for Europe instrument is a joint borrowing scheme backed by the EU budget aimed at boosting the bloc's defence capabilities and helping member states meet new, more ambitious NATO spending targets

($1 = 0.8971 euros)

(Reporting by Inti Landauro)

Key Takeaways

  • The €21.3 billion reflects unrequested SAFE funds following revised borrowing plans by Hungary and Italy under the original €150 billion SAFE framework (defence-industry-space.ec.europa.eu).
  • The Commission urges member states to prioritise urgent military needs—air and missile defence, drones, and ammunition—and to include joint procurement projects with Ukraine in investment plans (defence-industry-space.ec.europa.eu).
  • All 27 EU countries are eligible to apply in this second call, including those that did not participate initially, with tentative allocations to be communicated within two weeks of national submissions (2eu.brussels).

References

Frequently Asked Questions

What is the EU's SAFE defence funding programme?
The SAFE programme is a €21.3 billion joint borrowing scheme by the EU to strengthen defence and help meet NATO spending targets.
How can EU member states use the SAFE fund?
Member states can apply for loans and use them for joint procurements with Ukraine, focusing on air defence, drones, and ammunition.
Why is the European Commission urging states to use the SAFE fund now?
The Commission highlights urgent defence needs for both Ukraine and EU states, especially in areas like missile defence and drones.
What defence priorities did the EU Commission highlight?
Priorities include air and missile defence systems, drones, counter-drone systems, ammunition, and missiles.

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