EU Opens Second SAFE Round: €21.3 Billion in Defence Loans Up for Grabs
On 29 October 2026 the European Commission opened the second round of SAFE (Security Action for Europe), its defence loan facility. About €21.3 billion is on offer, money that member states did not request in the first round. Every EU country can apply, whether or not it took part earlier. A Commission spokesperson told Rapporteur that capitals have until 30 November to send their requests.
Last updated: 29 October 2026
What SAFE is
SAFE is an EU instrument that gives member states long-maturity loans for defence investment. The total envelope is €150 billion. These are loans, not grants: the borrowing country repays from its own budget. According to the Commission’s SAFE page, at least 65% of component costs in a SAFE-funded procurement must originate in the EU, Ukraine or eligible EEA/EFTA countries. Procurements are generally joint, involving at least two countries, one of them a SAFE-borrowing member state; the page adds that SAFE also temporarily backs purchases by single countries. Ukraine and EEA/EFTA states can take part under set conditions.
The first round
Nineteen member states requested more than €130 billion in total. The Commission has approved all national plans, signed 16 loan agreements, and paid almost €13.5 billion in pre-financing to 11 countries (Eunews, Euperspectives). The Commission’s preliminary split of September 2025, as reported by Anadolu Agency, was led by Poland:
| Country | Preliminary allocation (€ bn) |
|---|---|
| Poland | 43.7 |
| Romania | 16.68 |
| France | 16.21 |
| Hungary | 16.21 |
| Italy | 14.9 |
| Belgium | 8.34 |
| Lithuania | 6.37 |
| Portugal | 5.84 |
| Latvia | 5.68 |
Smaller shares went to Bulgaria (3.26), Estonia (2.66), Slovakia (2.31), Czechia (2.06), Croatia (1.7), Cyprus (1.18), Spain (1), Finland (1), Greece (0.787) and Denmark (0.0467). These are the September 2025 figures; approved final amounts have since shifted for some countries.
Where the leftover came from
Some governments chose to borrow less than planned. Euperspectives reports that Hungary cut its intended €16.2 billion to €5.4 billion, and that Italy’s request fell from €14.9 billion to just over €8 billion. Eunews gives €8.9 billion for Italy and quotes Foreign Minister Antonio Tajani on shifting resources to healthcare and social policy. The sources do not agree on the exact Italian figure.
How round two works
Member states first tell the Commission how much extra money they want. The Commission then indicates a provisional amount for each, countries submit additional investment plans, and those are assessed again. Provisional allocations are due within two weeks of the deadline. The rules of the original scheme do not change. Commission spokesperson Thomas Regnier urged governments to take Ukraine’s needs into account; the encouraged priorities are air and missile defence, drones and counter-drone systems, ammunition and missiles. Joint procurement with Ukraine is encouraged but not mandatory, and final decisions rest with national governments.
Where Turkey stands
The Commission’s SAFE page does not mention Turkey, the UK or Canada; it speaks only of Ukraine and EEA/EFTA countries. The 65% rule leaves up to 35% of component costs open to suppliers from elsewhere, so Turkish firms could in theory appear as subcontractors or component makers inside that margin. That is a reading of the rule text, not a right granted to Turkish industry.
Formal Turkish participation would need a separate agreement, which Greek reporting says requires unanimity among member states. Greece and Cyprus are blocking it: Greek City Times (July 2026) quotes Greek diplomatic sources saying Athens will keep its veto until Ankara withdraws the 1995 casus belli declaration. ProtoThema reported in 2025 that a Commission spokesperson said a third country could be excluded if it poses a direct threat to a member state or the EU. Academy of Athens researcher George Kalpadakis argues the veto can stop a formal agreement but not, by itself, Turkish companies from entering individual projects; that is an analyst’s view. I found no Council or Commission decision on Turkey’s inclusion, and the second-round announcement contains no new step on it.
FAQ
How much money is in the second SAFE round?
About €21.3 billion, the part of the €150 billion envelope that was not requested in the first round.
What is the SAFE application deadline?
30 November 2026, according to a Commission spokesperson quoted by Rapporteur. Provisional allocations follow within two weeks.
What is the 65% rule in SAFE?
At least 65% of a procurement’s component costs must come from the EU, Ukraine or eligible EEA/EFTA countries; up to 35% can come from elsewhere.
Can Turkey take part in SAFE?
Not at present. Loans go only to EU member states, and a Turkish participation agreement is blocked by Greece and Cyprus.
Related reading: Ukraine’s 2027 defence budget plan, Poland’s PAC-3 maintenance centre and Switzerland’s Barak MX and SAMP/T NG shortlist.
Sources
- European Commission, SAFE page: defence-industry-space.ec.europa.eu
- Eunews: The second round of SAFE gets underway
- Euperspectives: Commission urges countries to claim €21.3bn leftover
- Rapporteur: Commission opens applications for remaining SAFE defence loans
- Anadolu Agency: EU allocates 150B defense fund among member states
- Greek City Times: Greek veto on Turkey’s SAFE participation
- ProtoThema English: Message from the Commission to Turkey
