The European Commission proposes that EU member states can use up to 21.3 billion euros from the SAFE defense loan program to support Ukraine and cover Kyiv’s 2027 funding needs.

A second round of SAFE funds totaling 21.3 billion euros, previously unallocated, is being encouraged for defence needs and Ukraine cooperation, though participation remains optional for member states.

The Commission opened a second round of low‑interest defence loans and urges use of unspent SAFE funds to pursue joint defence projects with Ukraine to help close Kyiv’s about 70 billion euro budget gap.

Disbursement will occur in validated tranches up to the approved amount according to the agreement.

Among investments is the purchase of three FREMM EVO frigates from Fincantieri, valued at roughly 3.9 billion euros.

SAFE loans are positioned as cost‑effective, with repayments starting after ten years and maturities up to 45 years, offering terms similar to Next Generation EU and SURE loans.

Portugal’s SAFE portfolio is valued at about 5.8 billion euros.

Portugal expects the first tranche of its EU SAFE loan to be delivered by year’s end following signing and validation by the Court of Auditors.

The SAFE loan agreement with the European Commission has been signed by the key parties and is now awaiting validation by the Court of Auditors.

Allocation is subject to strict rule‑of‑law, anti‑corruption, economic resilience, and sustainability conditions for the budgetary support portion.

The government has approved mobilizing 5.84 billion euros under SAFE, with a multi‑year plan to be executed by 2030.

Poland is projected to be the largest recipient in the second round, while Italy has shown reluctance to participate despite potential financial gains.