Europe Launches $24 Billion Round of SAFE Funding, Focus on Ukraine

The European Union’s Commission (EC) launched the second funding round of the SAFE (Security Action for Europe) program on Thursday, Oct. 29. The funding cycle offers €21.3 billion ($24 billion) and is open to all 27 EU Member States.SAFE, which was launched in May last year as a key part of the EU’s “Readiness 2030” initiative, provides long-term defense loans, repayable over an extended period.JOIN US ON TELEGRAMFollow our coverage of the war on the @Kyivpost_official.This latest facility is part of the original €150 billion ($170 billion) approved by members and is designed to strengthen Europe’s defense by accelerating in the continent’s defense industry. In it the EC calls on countries to use these additional funds to support joint procurement projects for the most urgent needs of Ukraine’s armed forces in addition to their own defense needs. It identified.In a letter to European governments on Thursday, Defense Commissioner Andrius Kubilius identified air and missile defense systems, drones and counter-drone systems, and ammunition as priorities for Kyiv.This second call will be open to all member states. The commission said it will announce the tentative allocation of funds within two weeks after the submission deadline, which is thought to be Nov. 13. Nations will then be required to announce and fully implement their approved projects by June 30, 2027.Bidding for leftoversNineteen member states made bids against the first round of financing last November, all of which were approved for a total of around €130 billion ($145 billion). To date 16 have signed agreements with the EC of which around €13.5 billion ($15 billion) was allocated to 11 nations who requested pre-financing. Other Topics of Interest Ukrainian Drones Hit Russian Military Food Supplier, Oil Refinery in Overnight Attacks The latest strike comes after a pause of nearly two weeks in reported Ukrainian attacks on Russian oil refineries. Several member states, particularly Italy, Hungary and France, borrowed far less than anticipated which threw up additional funds for round two. On taking office Hungarian Prime Minister Péter Magyar reduced Budapest’s application from €16.4 billion ($18.3 billion) to €5.4 billion ($6 billion) confirming the new figure in September.As the EC’s defense spokesperson Thomas Regnier highlighted in his a weekly press briefing: “These leftovers can definitely benefit national defense industries, but also Ukraine in the current context. We can align both interests.”Eight EU countries including Germany and the Netherlands did not apply for SAFE loans last year, arguing they could borrow more cheaply on their own than through common EU debt arrangements. It seems likely that only a few member states, such as Ireland, Greece and Poland will make use of this latest round. Poland is currently the largest user of SAFE having applied for €43.7 billion ($49 billion), almost 30% of the round one total, and is expected to bid again as it continues to expand its defense forces. Kyiv Post is Ukraine’s first and oldest English news organization, reporting since 1995. Its international reach – 90% of readers are outside of Ukraine – make it truly Ukraine’s global voice.