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

Poland and several other EU countries have been caught off guard by European Commission President Ursula von der Leyen's remarks about the EU's plans to use remaining funds from the Security Action for Europe (SAFE) programme to create a separate scheme for joint projects with Ukrainian companies.

Source: European Pravda citing RMF FM, a Polish radio station

Details: Poland previously said it wants to take part in a second round of applications under the SAFE programme and use funds left unclaimed by other countries for its own defence projects.

However, following von der Leyen's words, it is unclear whether the funds Warsaw were counting on in the second SAFE round and intended to use for its own defence projects will in fact be available.

"There was no such discussion with the European Commission," an EU diplomat in Brussels told an RMF FM journalist, expressing irritation over von der Leyen's remarks.

Quote: "For now, it is we – the member states – who are repaying this loan, not the European Commission."

More details: The diplomat said EU member states were not consulted on the issue. SAFE provides loans taken out by EU countries which must later be repaid. Some capitals therefore believe that member states themselves should have the decisive say over how any remaining funds are used.

Another RMF FM source in Brussels said the Commission wanted to direct unused SAFE funds towards joint projects with Ukrainian companies, including Freyja, the anti-ballistic coalition.

RMF FM reported that, at working-level meetings, the European Commission has so far only hinted that it was considering changes to the way the remaining funds could be used. Member states responded that any such changes would first have to be agreed with them.

The surprise is all the greater because it is not yet known how much money will actually remain in the fund. Member states have until the end of October to provide the commission with information on the implementation of their projects. Only then will it be possible to calculate how much money will in fact remain unused.

Until recently, unofficial estimates put the amount at around €10 billion. Italy was allocated almost €15 billion but has still not signed an agreement for the full amount reserved for it. Rome is considering the impact the loan could have on its budget deficit. In Hungary's case, around €16 billion has been allocated, but it also remains uncertain whether the country will manage to sign its agreement in time.

Only after this stage is completed will it be possible to determine how much money will actually return to the common fund.

RMF FM reported that EU countries participating in SAFE have so far used only a small share of the funds for joint programmes with Ukraine. The European Commission, meanwhile, is seeking additional funding for Kyiv, which has warned of a shortfall in its defence budget.

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