SAFE stands for Security Action for Europe, the European Union's defence-loan scheme worth up to €150 billion. It lends money — it does not give grants — so EU governments can buy military equipment faster, and the loans are backed by the EU budget. The European Commission opened a second round worth €21.3 billion on 29 October 2026, after some governments asked for less than expected in the first round.

How does SAFE work?

Nineteen of the EU's 27 member states are taking part. Each government submitted a defence investment plan, and the Commission has approved loan agreements for all 19, signing 16 of them so far. Almost €13.5 billion has already been paid out as pre-financing — 15 per cent of each allocation — to 11 member states, with the rest paid as milestones are met. Loans run for decades: Estonia's agreement, for example, runs for 45 years. Poland is the biggest borrower, with €43.7 billion, while Hungary cut its request to €5.4 billion and Italy reduced its ask to about €8 billion, leaving €21.3 billion uncommitted for the second round.

What can SAFE money buy?

The money is for ammunition, air and missile defence, armoured vehicles, drones and counter-drone systems, and defence infrastructure. Projects are normally joint purchases between at least two countries, and at least 65 per cent of the cost of components must come from the EU, Ukraine or EEA/EFTA countries. Single-country purchases had to be contracted by 30 May 2026, but joint purchases can still be signed, and all equipment bought with SAFE loans must be delivered by 2030. The scheme is a key part of the EU's Readiness 2030 defence plan.

SAFE explained: your questions answered

• Is SAFE a grant or a loan? It is a loan. Member states borrow against the EU's credit rating and repay over decades.
• Can Ukraine benefit from SAFE? Yes. The second round encourages joint procurement with Ukraine, and Kyiv's most urgent needs — air and missile defence, drones and counter-drone systems, ammunition and missiles — are the Commission's stated priorities.
• Which EU countries are not taking part? Eight member states, including Germany, did not request loans in the first round. The second round is open to all member states, including those that sat out round one.
• When will the second-round money be allocated? The Commission has not published a submission deadline. It says it will tell governments their tentative allocations within two weeks of the deadline.