Contents1. SAFE: major response to strategic challenges2. Ukraine-SAFE: from aid to partnership3. 18 countries, €127 billion: demand defining new reality4. Opportunities and risks for Ukraine in SAFE5. Strategic window for new partnershipSince the start of Russia’s full-scale invasion of Ukraine, Europe has fully realized that the old security model, based on political statements, peacekeeping initiatives, and slow institutional mechanisms, no longer works. A new era has begun: an era of existential defense mobilization, where security is no longer a byproduct of economic growth but rather defense capability increasingly determines the stability of states and alliances.The unpreparedness for war in 2022 forced European capitals to rethink not only defense funding approaches but also the very concept of the defense industry. France, Germany, Poland, and the Baltic states all faced limited production lines, ammunition shortages, and slow weapons modernization. Meanwhile, Ukraine, fighting an empire spending tens of billions of dollars annually on war, demonstrated the ability not only to hold defense but also to modernize its army in near real time. That is why integrating Ukraine into the European defense-industrial architecture ceased to be a political slogan and became a security necessity.Europe needs not only “investments in Ukraine” but also an industrial alliance with it. Ukraine is shaping a new approach to warfare: drones (UAVs, ground, and sea), autonomous platforms, flexible logistics, modular production. Now, for the first time in history, this logic is being integrated into the EU’s collective defense structure through the launch of a strategic initiative called SAFE.SAFE: major response to strategic challengesOfficially presented by the European Commission at the end of May this year, the Security Action for Europe (SAFE) program is the EU’s first-ever financial and institutional instrument for defense integration. It combines joint planning, industrial cooperation, large-scale financing, and strategic long-term vision. SAFE enables EU member states to access up to €150 billion in concessional loans by the end of 2030 to develop defense production.The program’s regulation (EU Regulation 2025/1106) defines the list of priority areas eligible for funding. These include ammunition, artillery, missile systems, ground combat systems, drones of all classes (from tactical FPVs to operational-strategic), counter-UAV measures, air defense systems, military mobility, strategic infrastructure, artificial intelligence, electronic warfare, C4ISTAR, and naval components.The SAFE program is a logical continuation of two previous models — EDIRPA (a joint procurement initiative) and ASAP (a tool for scaling ammunition production) — but surpasses them in scale, scope, and political significance. It is no longer a temporary response to the war but the formation of a unified European defense-industrial ecosystem supported by Brussels. It is also an effort to strengthen Europe’s strategic autonomy amid shifts in U.S. policy.SAFE establishes the principle of “European orders for European manufacturers,” not as protectionism but as a matter of capability. It enables member states to quickly finance, scale, and coordinate the deployment of production for key weapons systems, considering the needs of both national armies and Ukraine’s Defense Forces.Ukraine-SAFE: from aid to partnershipThe uniqueness of SAFE also lies in the fact that, for the first time, Ukraine is not merely “considered” in a European program — it is recognized as a full institutional participant. Although Ukraine, as a non-EU member, cannot independently receive loans, Ukrainian manufacturers are officially included among the eligible contractors funded by EU countries. This means Ukrainian companies can act as contractors, subcontractors, suppliers, or partners if they comply with SAFE standards (ownership, localization, no interference from third countries, etc.).This is a revolutionary change in approach. Whereas Ukraine was previously a recipient of humanitarian aid or excess weaponry, it is now a cooperative partner on equal terms. At this level, access opens to long-term orders, joint R&D, industrial alliances, and the deployment of production capacities according to NATO and EU standards.Already in June–July 2025, Ukraine’s Ministry of Defense, together with Ukrainian defense industry associations, conducted a survey among manufacturers focused on three areas: drones, ammunition, and missile technology. The collected data will be used in negotiations with EU member states applying within SAFE to include Ukrainian companies in their national investment plans. This marks the real start of Ukraine’s integration into Europe’s new defense ecosystem.18 countries, €127 billion: demand defining new realityThe numbers show how seriously Europe has taken the SAFE program. As of early August 2025, 18 EU countries have submitted funding applications totaling over €127 billion — more than 80% of the available credit limit.Poland is the largest applicant, officially requesting €45 billion, a third of the total. It is followed by Italy, Spain, Romania, Latvia, France, Estonia, the Czech Republic, Slovakia, Hungary, Portugal, Lithuania, Bulgaria, Greece, Belgium, Cyprus, Croatia, and Finland, essentially the entire eastern and southern flank of NATO and the EU.Most applications focus on scaling up the production of ammunition, air defense systems, drones, artillery, and military mobility. Some governments have explicitly stated that their investment plans may involve Ukrainian companies as contractors or suppliers. And right now, during the finalization of contracts, a new reality is being shaped. Will Ukraine be able to seize this window of opportunity? SAFE is not just a financial instrument. It is a platform for institutional cooperation: defining needs, forming partnerships, and establishing joint production. If Ukrainian companies can integrate into these supply chains, they won’t just receive orders — they will become strategic components of Europe’s defense architecture.Opportunities and risks for Ukraine in SAFEAt the same time, the opportunities offered by SAFE are not automatic. The program also poses certain risks for Ukraine. First and foremost is the lack of a unified procurement mechanism, which gives member states excessive flexibility and allows them to favor national producers without competitive procedures. There's also the risk of Ukrainian companies being sidelined due to insufficient advocacy, lack of visibility, or bias from European clients.In addition, legal barriers, such as restrictions related to control by third-country entities, infrastructure localization, and intellectual property rights, require professional legal and diplomatic support. SAFE mandates that companies must not be controlled by entities from third countries, must have adequate production infrastructure within the EU or Ukraine, and must be able to independently adjust their product configurations without external interference. These requirements impose limitations, but they also incentivize the institutional growth of Ukraine’s defense industry.Strategic window for new partnershipOverall, SAFE is more than just a program. It is Europe’s response to the new reality of war. It forms the foundation not only for a new defense economy, but also for a new logic of alliance.In essence, it is the architectural framework of a new European security model. The program creates institutional conditions for long-term industrial cooperation based on real combat needs, technological capabilities, and strategic thinking. Ukrainian companies’ participation in SAFE can and should become a tool not only for transforming the defense industry, but also for reshaping Ukraine’s broader model of EU integration. If Ukraine integrates into this process at the levels of product development, manufacturing, R&D, and management systems, it will signal that Ukraine’s EU integration is not merely procedural, but a new European security norm.Today, SAFE is a window of opportunity, both for Ukraine and Europe, to build a truly equal partnership in shaping a common European defense-industrial space, combining European investment and capacity with Ukrainian technologies and battlefield experience.This material was prepared in cooperation with the Consortium for Defense Information (CDI), a project that brings together Ukrainian analytical and research organizations and aims to strengthen informational support and analytical capacity in the fields of national security, defense, and geopolitics.