The European Commissioner for Defense, Andrius Kubilius, reported a significantly higher than expected demand for loans under the SAFE defense program. According to him, although there were initial concerns about a possible lack of interest, especially from countries not bordering Russia, the applications ultimately submitted far exceeded the available budget.
This is reported by Kyiv24
“My internal fear was that demand would be low, and only bordering countries would apply – and how would we explain that later? But it turned out to be absolutely the opposite – demand was greater than we expected. We asked member states to provide two figures – a minimum and a maximum. And the maximum overall exceeded 180 billion euros,” Kubilius said, commenting on the allocation of 150 billion euros in concessional loans for defense projects.
Country Applications Exceeded Available Resources
During the loan allocation process, it became clear that the maximum amounts requested by member states reached over 180 billion euros, while the program’s budget was set at 150 billion euros. As a result, each country received less than the desired maximum, but none were left without funding. For example, Latvia received 5.6 billion euros instead of the requested 8 billion, and Lithuania received 6 billion euros instead of 8 billion.
All 150 billion euros were distributed among 19 European countries. A third of them, including 13 states, have already announced their intention to use these loans to support Ukraine. Currently, countries are working on preparing investment plans, which must be submitted to the European Commission by the end of November. The first disbursements under the program are expected to occur in the first quarter of 2026.
SAFE Program Priorities and Lending Conditions
The SAFE program (Security Actions for Europe) includes three main funding directions:
- Implementation of large joint projects, such as missile defense systems, air defense systems, multi-layered “drone walls,” and initiatives taking into account the Ukrainian experience.
- Support for strategic capabilities, including secure satellite communications, space intelligence, logistics, heavy transport aircraft, and aerial refueling.
- Increase in the production of armored vehicles and artillery systems.
SAFE offers participating countries concessional loans with a ten-year repayment term and low interest rates. Additionally, the program allows for contracts with non-EU partners, such as Norway, the United Kingdom, or Turkey.
The implementation of this joint financial mechanism was a response from the European Union to the growing threats from the Russian Federation, and it aims to strengthen the defense capabilities of European countries in the coming years.