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BackControversy over SAFE measures: The European Commission wants to support the Ukrainian defense industry
Controversy over SAFE measures: The European Commission wants to support the Ukrainian defense industry
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RMF2441 minutes agoPolitics2 min readView original

Controversy over SAFE measures: The European Commission wants to support the Ukrainian defense industry

Ursula von der Leyen's plans to use the remaining SAFE funds raise objections from EU member states.

Quick Look

  • The President of the European Commission, Ursula von der Leyen, announced that the remaining funds from the SAFE program will be allocated to projects with the Ukrainian defense industry.
  • This decision caused irritation in EU capitals, which counted on these funds and were not consulted on the matter.

AI-generated summary

Why It Matters

SAFE is the EU's lending mechanism supporting the defense industry. Member States repay the obligations incurred under it.

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The head of the EC leaves no doubt: Using the remaining funds from SAFE, we will launch a new program of joint projects with Ukrainian companies - she said in her message. Let us recall that in August, the deputy head of the Ministry of National Defense, Paweł Zalewski, announced the second SAFE recruitment process, which Poland wants to join. First of all, there will be extra time in negotiations with the European Commission. We will present our projects that we would like to include in this mechanism, he said.

However, after today's announcement by Ursula von der Leyen, this plan is in doubt. Her words indicate that the Commission wants to allocate the additional money from SAFE to joint projects with the Ukrainian defense industry instead of defense projects in EU countries. Therefore, it is not known whether the money that Warsaw was counting on in the second SAFE recruitment and which it wanted to spend on its own defense projects will actually be available.

There was no such conversation with the EC - says an EU diplomat in Brussels with irritation about Ursula von der Leyen's statement in an interview with an RMF FM journalist. For now, it is us, i.e. the Member States, who are repaying the money from this loan, not the European Commission - he reminds. The point is that the Member States were not consulted on this matter. And SAFE are loans taken out by EU countries that have to be repaid later. Therefore, some capitals believe that states should have the final say on the use of the remaining funds.

The Commission wants to spend the funds remaining after SAFE on joint projects with Ukrainian companies, including Freyja, i.e. an anti-ballistic coalition - admits another of RMF FM's interlocutors in Brussels. Freyja is a planned European-Ukrainian air and missile defense system, which is intended to be a cheaper equivalent of the American Patriot system.

As the RMF FM journalist found out, at working meetings the EC has so far only signaled that it is considering changes to the use of the remaining money. However, the states then replied that such changes must first be agreed with them.

The surprise is even greater because it is not yet known how much money will actually remain in this pot. Member States have until the end of October to provide the Commission with information on the implementation of the projects. Only then will it be possible to calculate how many funds will actually remain unused.

Until recently, unofficial information was said to be around EUR 10 billion. Italy has been granted almost EUR 15 billion, but has not yet signed an agreement for the entire amount reserved for it. Rome is considering the impact of this loan on the budget deficit. Also in the case of Hungary, which has been granted approximately EUR 16 billion, it is not yet certain whether they will be able to sign the agreement on time.

Only after this stage is completed will it be possible to say how much money will actually return to the pot. For now, it's like splitting the skin of a bear - an RMF FM journalist heard.

According to information from an RMF FM journalist, so far the EU countries participating in SAFE have used the money for programs jointly with Ukraine only to a small extent. However, the EC wants to find funds for Kiev, which complains about a budget hole in defense spending.

What to Watch

AI outlook — possibilities, not facts

  • The final settlement of unused SAFE funds will take place after October.

    Very likely · Within months

Open Questions

  • How much money will actually remain in the SAFE pool after October?
  • Will the EC withdraw its unilateral decision under pressure from states?

Related Topics

This article was originally published by RMF24.

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