EU opens a second call for €21.3 billion in defence loans
The European Commission has invited every EU member state to seek loans from a second SAFE funding round worth €21.3 billion. The money comes from the existing €150 billion programme after some governments requested less than their initial allocations. The Commission encouraged joint purchases with Ukraine, including equipment to meet urgent air-defence, drone and ammunition needs.
Geopolitics··Evening
A second invitation to all members
The European Commission invited all European Union member states to seek loans from a second round of Security Action for Europe, the defence-financing instrument known as SAFE. The October 29 call makes €21.3 billion available. Governments are being asked to state how much they wish to borrow in light of their own national defence requirements.[1], [2]
Once the requested amounts have been submitted, the Commission will notify governments of tentative allocations within two weeks of the submission deadline. The invitation therefore starts a new allocation process within the programme. National investment plans will set out the spending to be financed, including the defence priorities and cooperative purchases proposed by the participating governments.[1], [2]
Unused allocations return to the programme
The €21.3 billion comes from the existing €150 billion loan facility adopted in May 2025. Some governments requested less than their initial allocations when they submitted defence industry investment plans in November 2025. Those lower requests left funding available for another round under the same instrument, rather than a separate loan fund added to the original programme.[1], [2]
SAFE provides long-maturity loans intended to accelerate defence investment and encourage countries to purchase equipment together. It is part of Readiness 2030, the European Union initiative to strengthen military preparedness, resilience and the defence industrial base. The Commission framed the new invitation around national requirements as well as cooperation to meet shared military needs.[1], [2]
Ukraine purchases and existing disbursements
The Commission encouraged member states to include joint procurement with Ukraine in their investment plans. Its list of urgent requirements covers air and missile defence, drones and systems to counter them, ammunition and missiles. The priorities reflect the needs of Ukrainian forces and member-state armed forces, with joint procurement presented as a route for addressing those needs.[1], [2]
For the first round, loan agreements have been approved for all 19 participating countries, and the Commission has signed agreements with 16 of them. Almost €13.5 billion has already been disbursed to 11 member states that requested prefinancing. These payments concern existing participants, while the second call now opens the application process to every member state.[1], [2]
