During her address to the European Parliament on September 15, Ursula von der Leyen revealed plans for collaborative defense projects between the EU and Ukraine. She stated that the European Commission would initiate a new program using leftover SAFE funds, with an estimated budget of €10 to €20 billion from a larger €150 billion credit program.
Among the initiatives under consideration is the European-Ukrainian air and missile defense system Freyja, touted as a more cost-effective alternative to the American Patriot missile defense system.
This announcement reportedly took Poland by surprise. Warsaw had previously indicated its intention to participate in the second round of SAFE funding, planning to utilize unspent funds from other EU nations for its own defense initiatives. However, there are now concerns that this strategy may be at risk due to von der Leyen’s remarks, suggesting that unused allocated funds may not be available for individual EU states’ new defense projects.
The European Commission’s stance has also caused discontent in Brussels. An anonymous European diplomat expressed frustration to RMF24, noting that such decisions had not been discussed with member states. Countries within the EU are responsible for repaying SAFE loans and believe they should have a decisive say in how any remaining funds are utilized.
It remains uncertain how much funding will ultimately be left over. EU nations are expected to submit information to the European Commission regarding their use of these funds by the end of October, after which the available amount will become clearer.
Context
- The work on an anti-ballistic system in collaboration with European countries was first mentioned by Ukrainian President Volodymyr Zelensky in April.
- In May, co-owner and chief designer of Fire Point, Denys Shtilerman, reported that the company is joining the anti-ballistic coalition and presented the pan-European project Freyja, which aims for a unified air and missile defense system focused on intercepting ballistic missiles. The system is expected to integrate with other NATO-standard air defense elements through Link-16.
- In July, Zelensky expressed hope that Ukrainians would see the Freyja system operational within the following 12 months.
- The first phase of trials is anticipated to start by the end of December 2026, with full-scale production and deployment planned for 2027.
