Up To €20 Billion In Remaining SAFE Funds Could Be Used To Support Ukraine — European Commission

Between €10 billion and €20 billion in leftover funds from the EU's SAFE defense financing program could potentially be allocated to projects aiding Ukraine, according to European Commission spokesperson Thomas Regnier. The exact sum will be determined once EU funding applications from Italy and Hungary are approved, Regnier told reporters in Brussels.

"Given the current situation in Ukraine and the hybrid threats faced by member states, it's a win-win situation to link Ukraine to SAFE from the beginning," he emphasized. Most EU countries have already integrated Ukraine into their SAFE-related initiatives, making joint procurement possible. The remaining funds are anticipated to follow a similar approach.

SAFE, or Security Action for Europe, is an EU financial tool aimed at bolstering European defense capabilities through low-interest loans and collaborative projects. Ukraine was included in the program to foster collaboration between Ukrainian and European defense sectors. In her recent address to the European Parliament, EU Commission President Ursula von der Leyen stated that any unallocated SAFE funds could also be utilized to assist Ukrainian defense companies.

Consequently, the potential €10 billion–€20 billion allocation would serve as an additional funding source for joint European-Ukrainian defense ventures as member states strive to boost their defense production and bolster support for Ukraine. In a separate development, the Council of the EU approved a further €3 billion tranche for Ukraine under the Ukraine Facility.