The European Commission has softened its position on redirecting unused defence funds to Ukraine after concerns from member states, including Poland, that they would be forced to purchase equipment from Ukrainian manufacturers, according to RMF24.
Deputy defence minister Magdalena Sobkowiak-Czarnecka confirmed after talks in Brussels that there will be no automatic requirement to buy from Ukraine’s arms industry if countries apply for the second round of SAFE programme loans.
“There will be no compulsion when it comes to spending these funds,” Sobkowiak-Czarnecka told reporters. “When it comes to drone equipment, it does not mean at all that we are buying these drones from Ukraine.”
The shift follows a proposal by European Commission president Ursula von der Leyen in September to use leftover money from the €150 billion SAFE programme for joint projects with Ukrainian defence manufacturers. The suggestion sparked surprise in several EU capitals, particularly Warsaw, which had been counting on accessing the second tranche for its own defence projects.
Dispute over where EU defence money should be spent
The underlying tension centres on where European money for Ukraine’s rearmament is actually being spent. Brussels and member states want a substantial share of orders placed with European manufacturers, but Kyiv prefers to spend the funds on domestic production and purchases from the United States.
Poland has a particular interest in the outcome. Sobkowiak-Czarnecka emphasised that Polish companies will benefit from Ukraine’s €90 billion rearmament loan, meaning Ukraine will buy Polish equipment with those funds. Warsaw also has its own drone industry and already exports solutions to other countries, making it keen to preserve access to SAFE money for developing Polish production capacity.
The Commission still wants the remaining pool to strengthen European drone and counter-drone capabilities, but will not mandate purchases from Ukrainian industry.
Tight deadline and uncertain value
Between €10 billion and €20 billion is expected to remain from the first round of SAFE, according to preliminary Commission estimates. Member states have until the end of October to account for the initial distribution, and several countries, including Italy, will not use their full allocations. The leftover funds are due to be redistributed at the start of next year.
Poland has not yet decided whether to apply for the second round. The decision will be taken at government level, but there is a practical problem: any second tranche will still be governed by current rules, meaning projects must be completed by 2030. If additional money is only awarded in 2027, countries will have just three years to spend it—a serious constraint for major defence programmes with long production and delivery schedules.
SAFE is not a grant scheme. It consists of loans taken out by member states, which must eventually be repaid. Poland is due to apply this month for a €6.5 billion payment from the first round of SAFE. So far, Warsaw has received only an advance from the programme.
What this means for Poles in Poland
Poland’s government must now weigh whether to take on further debt under SAFE given the compressed timeline for spending. The decision has practical implications: if Warsaw opts in, it will be borrowing money that must be repaid from future budgets, but the short window may limit which defence projects are feasible. On the other hand, not applying means forgoing support for Poland’s growing domestic arms industry at a time when the country is rapidly expanding defence spending.
For Polish taxpayers, SAFE loans are an addition to existing defence commitments. Poland has already set aside the equivalent of £45 billion for defence in its 2027 budget. Any new SAFE borrowing will add to the national debt burden, though it may also generate orders for Polish manufacturers and jobs in the defence sector. The government has said it will decide shortly whether the opportunity is worth the financial cost and the practical risk of not being able to spend the money in time.
