Poland reportedly surprised by Brussels plan to use remaining SAFE funds for Ukraine

What Happened

Poland and several other EU countries were caught off guard by European Commission President Ursula von der Leyen's remarks that the EU plans to use remaining funds from the Security Action for Europe (SAFE) programme to create a separate scheme for joint projects with Ukrainian companies, European Pravda reported citing RMF FM. An unnamed EU diplomat in Brussels told RMF FM: 'There was no such discussion with the European Commission.' Another RMF FM Brussels source said the Commission wanted to direct unused SAFE funds towards joint projects with Ukrainian companies, including Freyja, the anti-ballistic coalition. Poland previously said it wanted to take part in a second SAFE application round and use funds left unclaimed by other countries for its own defence projects; after von der Leyen's remarks it is unclear whether those funds will remain available. Member states have until the end of October to report project implementation, after which the actual unused amount will be known; unofficial estimates put it around €10 billion. Italy was allocated almost €15 billion but has still not signed an agreement for the full amount, considering the loan's impact on its budget deficit. Hungary has around €16 billion allocated, but it remains uncertain whether it will sign in time. SAFE loans are taken out by EU countries and must be repaid, and some capitals argue member states themselves should decide how remaining funds are used.

Key Actors

Why It Matters

The dispute touches both Ukraine's military funding and EU internal governance. Kyiv has warned of a defence budget shortfall, and the European Commission is seeking additional funding; reallocating unused SAFE loans could support joint defence production with Ukraine, including the Freyja anti-ballistic coalition. But SAFE loans are repaid by member states, and several capitals argue they must approve any reallocation. Poland's own defence projects may lose expected funding, and the episode exposes friction between the Commission's initiative and member-state control over EU borrowing.

Watch For

The end-of-October deadline for member states to report project implementation, after which the actual unused SAFE amount can be calculated. Whether Italy signs its agreement for the nearly €15 billion allocation and whether Hungary signs for its around €16 billion. Any formal European Commission proposal on redirecting remaining SAFE funds, and member-state responses, including Poland's position on the second round of SAFE applications.