The European Union has completed the allocation of €150 billion in low-interest loans for defence projects, with 19 member states taking part and Poland receiving the largest single share, the European Commission said.
The package, issued under the Security Action for Europe (SAFE) instrument, is intended to strengthen the bloc’s defence capabilities and address critical equipment gaps.
SAFE is a joint-borrowing scheme backed by the EU budget. According to the Commission, participating governments can use the funding to procure defence products and finance industrial investments designed to improve readiness in the face of potential military threats. The loans carry favourable terms, including a 10-year grace period before repayments begin.
Poland will receive €43.7 billion, the largest national allocation under SAFE. Romania has been assigned €16.7 billion. Hungary and France will receive €16.2 billion each, Italy €14.9 billion, Belgium €8.3 billion, Lithuania €6.4 billion, Portugal €5.8 billion and Latvia €5.7 billion. The Commission said total uptake matches the full €150 billion envelope.
Other participating countries include Bulgaria, Croatia, Cyprus, Czechia, Denmark, Estonia, Finland, Greece, Slovakia and Spain. Eight member states did not apply, the Commission said, noting they could access borrowing on comparable or better terms themselves. A country-by-country breakdown beyond the leading recipients was not immediately available in public documentation on Tuesday.
Announcing the final allocation, EU Defence Commissioner Andrius Kubilius said initial doubts about demand had proved unfounded. “There was a lot of scepticism about possible low interest. Now we see the contrary. The interest from the member states has been a resounding success. Not only Eastern frontier countries are interested,” he told a news conference.
Member states taking part must now draw up investment plans detailing how they intend to use the funds. These plans are due by the end of November 2025. The Commission will assess the submissions, with the first disbursements expected in the first quarter of 2026, subject to compliance with programme conditions.
The loans can support major procurement programmes and industrial capacity, including projects involving non-EU partners where appropriate. The Commission has indicated that arrangements may include cooperation with countries such as Norway, the United Kingdom and Turkey when their equipment meets EU requirements.
SAFE is part of a broader policy shift intended to consolidate Europe’s defence industrial base and increase collective resilience. EU governments approved the instrument in May, enabling the Commission to borrow on capital markets and channel the proceeds as long-maturity loans for defence. The initiative followed proposals in March aimed at accelerating joint procurement and filling capability shortfalls.
Earlier Commission updates indicated strong early demand. By late July, 18 countries had signalled requests amounting to at least €127 billion, prompting Brussels to prepare issuance plans. Tuesday’s confirmation that the entire €150 billion envelope is now subscribed formalises the scale of the take-up ahead of the autumn planning phase.
Poland’s allocation reflects its recent increase in defence outlays and large multi-year procurement pipeline, including air and missile defence, artillery, munitions and unmanned systems. Warsaw has said the funding will help advance those priorities within EU financing structures.
The SAFE loans will run alongside national budgets and NATO commitments. The Commission has presented the instrument as complementary to alliance planning, aimed at speeding deliveries and encouraging cross-border industrial projects within Europe. With the investment plans due by 30 November 2025 and first disbursements targeted for early 2026, governments now move to specify programmes that can be contracted and delivered on the timetable set out by Brussels.
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