EU approves second wave of major defense funding for eight member states

The European Union has taken a significant step toward bolstering its collective defense, with the European Commission approving a second round of major funding for eight member states on Monday. Estonia, Greece, Italy, Latvia, Lithuania, Poland, Slovakia, and Finland are now slated to receive financial assistance through the bloc's ambitious Security Action for Europe (SAFE) initiative.

Funding Aimed at Rapid Military Readiness and Modernization

Following a detailed assessment of national defense investment plans submitted by the member states, the EU Commission has proposed providing them with access to low-cost, long-term loans. The Commission stated this new wave of funding is designed to enable these nations to "rapidly boost military readiness and procure modern defense equipment." This move is a key part of the EU's broader strategy to strengthen its strategic defense capabilities in response to a changed security environment in Europe. The funding also explicitly aims to support Ukraine's future integration into the EU's common security framework.

Next Steps and the Scope of the SAFE Initiative

The proposal now moves to the EU Council, which has a four-week window to adopt the necessary implementing decisions. Once final approval is granted, the Commission will work to finalize the loan agreements, with the first disbursements of funds anticipated as early as March 2026. The Commission noted that assessments for defense plans submitted by other EU member states are still ongoing. The SAFE program itself was formally adopted on May 27, 2025, as a cornerstone of the EU's Readiness 2030 defense package. It enables participants to scale up investments through joint procurement from the European defense industry, aiming to improve cost efficiency, predictability, and interoperability among allied forces. Notably, the initiative's framework also allows for the participation of Ukraine, EFTA/EEA countries, and potential EU candidate states in its procurement and industrial agreements.

Context and Implications for European Security

This second wave of approvals follows the program's initial launch and underscores the EU's accelerating push for greater defense autonomy and coordination. The financial envelope for this round was provisionally set at approximately €74 billion when announced in September. By channeling funds through a centralized mechanism that mandates joint European procurement, the EU seeks to achieve a dual objective: enhancing the military capacities of its eastern and northern flank nations most exposed to geopolitical risks while simultaneously strengthening the continent's indigenous defense industrial base. This represents a substantive shift toward a more integrated and fiscally supported European defense policy.