European Commission President Ursula von der Leyen has proposed that around €10 billion in unutilized SAFE program loans be redirected to support Ukrainian defense efforts. The proposal comes as the European Union seeks ways to provide long-term military funding to Ukraine while also reinforcing its own defense readiness.
According to reports highlighted by European media, approximately €21 billion may remain unused within the SAFE program. This is because some member states have reduced their initial loan requirements or now plan to draw less than originally anticipated.
However, no final decision has yet been made to redirect these funds. The exact method for allocating the money, the countries involved, and possible projects still need to be clarified.
What is the SAFE program and how does it work?
The SAFE program—Security Action for Europe—is an EU financial tool aimed at boosting defense investments. It allows the Union to offer its member states loans totaling up to €150 billion.
The funding is intended to help countries procure military equipment more rapidly and collaborate on purchases. Supported areas include ammunition, missile and artillery systems, air defense, and other defense technologies.
A key feature of the SAFE program is joint procurement, enabling participating countries to coordinate their requirements and purchase military equipment more efficiently. Importantly, these loans are not grants—member states are required to repay them.
Ukraine itself cannot obtain SAFE loans as it is not an EU member state. However, it can participate in joint procurements with EU countries under certain conditions. This mechanism may prove crucial for channeling unused funding to bolster Ukraine’s defense capabilities.
Why have some loans gone unused?
In the first round, several member states expressed interest in SAFE program financing. Yet after submitting and reviewing national plans, not all required or intended to take the initially expected amounts.
Hungary and Italy, for example, lowered their requests, thus creating an opportunity to redistribute part of the available funding. The European Commission must now assess how much money remains and which countries are interested in additional loans.
A second application round will allow member states to submit further plans. Countries such as Romania, Greece, Poland, and Ireland may be interested in further financing, depending on the decisions of their respective governments and the program’s conditions.
Therefore, redirecting some resources to Ukraine’s support is not automatic. It will depend on SAFE program rules, financial capacity, and agreement between EU institutions and member states.
Ukraine needs ammunition, drones, and air defense
The Ukrainian armed forces continue to face ongoing Russian attacks and need a steady supply of military equipment. Ammunition, air defense systems, drones, and technologies to counter drones are among the key priorities.
The EU is also looking for ways to better connect its defense capacities with Ukrainian industry. Ukraine has gained extensive experience developing and deploying unmanned systems during the war, while European countries can offer funding and industrial capabilities to expand production.
Joint projects could not only facilitate the delivery of military equipment but also foster longer-term cooperation between European and Ukrainian manufacturers. However, specific projects to be financed by any released loans have yet to be confirmed.
What does this mean for Slovakia?
Slovakia is among the countries that submitted a defense investment plan under the SAFE program. The funding is intended to help member states modernize their armed forces and strengthen the defense industry.
A potential new loan round could give Slovakia further opportunities to finance defense projects, provided it applies for additional funds and meets the required conditions. However, it is important to note that these are loans that would need to be repaid.
For the Slovak government, it will be crucial to assess which investments take priority and whether additional borrowing is worthwhile in light of military needs and the state of public finances.
So far, it is not confirmed whether Slovakia will seek more money in the second round of the program. Likewise, no final amount has been decided for how much of the unutilized loans could be allocated to support Ukraine.
No final decision yet
The proposal to use up to €10 billion for Ukraine’s defense shows the EU is looking for new channels to finance military support for Kyiv. At the same time, it aims to ensure SAFE program funds are used as efficiently as possible.
The next step is to evaluate the remaining loans and further requests from member states. Only then will it become clearer how much will be available and whether a portion will indeed be used for defense cooperation with Ukraine.
For Kyiv, such financing could offer an additional opportunity to strengthen its military capacities. For EU member states, the key will be balancing their own defense needs with support for a country defending itself against Russian invasion.
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This article was translated from the original Slovak version with the assistance of AI.
