EU plans €20 billion SAFE-funded joint defense projects with Ukraine

October 1, 2026 at 06:48 PM2 min

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The European Union plans to allocate €20 billion in unused SAFE program funds for a new call for joint EU-Ukraine defense projects, European Commissioner for Defense Andrius Kubilius told the European Parliament on October 1. The call aims to expand defense cooperation with Ukraine, which faces a €23 billion defense budget shortfall this year. The announcement comes as the EU has approved €28.3 billion in weapons schedules for the 2026 Ukraine Support Loan.

Key Facts

The EU plans to use €20 billion in unused SAFE loans to open a second call for joint defense projects with Ukraine.
European Commissioner for Defense Andrius Kubilius announced the plan during a European Parliament hearing on October 1.
Ukraine's defense budget faces a €23 billion shortfall this year due to unfulfilled promises from the NATO summit in Ankara.
The EU has approved all weapons schedules for the 2026 Ukraine Support Loan totaling €28.3 billion, including PAC-3 interceptors from the United States.
The European Commission recently allocated €325 million to support five European Defense Projects of Common Interest, with Ukraine participating in four.

SAFE Funding Allocation

The European Union plans to allocate €20 billion in unused funds under the SAFE program to launch a new call for joint defense projects for the EU and Ukraine. European Commissioner for Defense Andrius Kubilius stated this during a hearing in the European Parliament on October 1. The goal of the second call is to expand cooperation with Ukraine in the defense sector and to implement joint projects both in Ukraine and in EU countries. Kubilius said the call aims to do more together with Ukraine, both in Ukraine and in the EU, for the benefit of both Ukraine and the EU, given Ukraine's leading role in defense innovation.

Ukraine Support Loan

All weapons schedules for the Ukraine Support Loan for 2026 have been approved in the amount of €28.3 billion, including PAC-3 interceptors from the United States. Last week, the EU allocated another €3.3 billion, bringing the total allocated to €11.7 billion. Kubilius expressed confidence that the EU will be able to allocate all €28.3 billion for 2026 by the end of the year. He added that more bilateral support is needed, as Ukraine's defense faces a shortfall of €23 billion this year. The shortfall stems from unfulfilled promises made by individual countries at the NATO summit in Ankara to provide more than €40 billion.

European Defense Projects

The European Commission recently announced the allocation of €325 million to support five European Defense Projects of Common Interest (EDPCI). Ukraine is participating in four of the five projects. Kubilius noted that three-quarters of individual support for Ukraine comes from just five European countries.