The European Commission has responded to a joint request from Lithuania, Latvia and Estonia for €500 million in new funding to develop anti-drone defences, saying it could not offer the additional funding sought. European Commissioner for Defence and Space Andrius Kubilius said one possibility was to make use of additional funding under the SAFE instrument.
Defence ministers from Lithuania, Latvia and Estonia sent a classified letter to the European Commission in late September requesting urgent financial support to strengthen defences against drones. Several stray drones have entered Baltic airspace this year amid air attacks between Ukraine and Russia.
The ministers sought the funding to develop an anti-drone system that could also serve as a model for other EU countries. Kaunas told LRT that the Baltic states wanted to combine detection, artificial intelligence and interception technology into an integrated air defence system. “Air defence and anti-drone solutions are important not only for our region but for all of Europe. Lithuania has taken the lead in developing an anti-drone air defence system,” Kaunas told LRT.
The Baltic states had hoped the commission would approve additional funding before the end of this year. However, Kubilius told LRT on Wednesday that the commission had sent its response but could not offer the additional funding sought. “One possibility now is to make use of additional funding under the SAFE instrument. We will announce a new call in the near future, because 21 billion euros remained after the first call,” he said.
Kubilius added that few other substantial funding opportunities were available through EU budget programs because the current budget period was nearing its end. Some anti-drone funding may be available through the Integrated Border Management Fund, though the sums would be far below the €500 million requested.
The Security Action for Europe (SAFE) instrument, launched last year, provides €150 billion in favourable loans for defence procurement, with repayment periods of up to 45 years and advance payments of up to 15%. Lithuania has been allocated access to up to €6.375 billion in SAFE loans, which it plans to use to establish a land forces division, develop the Baltic Defence Line, strengthen air defence, and finance other military modernisation projects. In October, Lithuania's Finance Ministry submitted its first request for a €1.06 billion loan under the scheme.
Analysis
Why This Matters
- The rejection leaves the three Baltic states, which border Russia and Belarus, without a dedicated EU anti-drone fund at a time when drone incursions are increasing
- The alternative, SAFE loans, requires countries to take on debt, potentially straining national budgets already under pressure from defence spending
- The outcome could set a precedent for how the EU handles collective defence requests from frontline member states
Background
Lithuania, Latvia and Estonia, all NATO and EU members, have been among Ukraine's strongest supporters since Russia's full-scale invasion in 2022. The Baltic states share borders with Russia and Belarus, making them vulnerable to stray drones and potential escalation. The EU's SAFE instrument, launched in 2025, is designed to facilitate joint defence procurement through low-interest loans.
Key Perspectives
Baltic Defence Ministers (Kaunas, Herem, Melnis): Sought €500 million for an integrated anti-drone system to protect the region, arguing it would be a model for all of Europe.
European Commission (Kubilius): No new funding available; cannot offer additional money. Instead, Baltic states should apply for loans under the existing SAFE instrument, which still has €21 billion remaining from its first call.
What to Watch
- The response from the Baltic capitals: whether they accept the SAFE loan route or push further for grants
- The upcoming SAFE call announcement and how much of the remaining €21 billion member states apply for
- Whether drone incursions into Baltic airspace continue, increasing political pressure on Brussels
Checked
12 claims in this story checked against 1 source: 11 supported.
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- SupportedThe European Commission rejected the Baltic states’ €500 million anti-drone funding request.LRT English: “Brussels rejects Baltic states’ €500 million anti-drone request, suggests borrowing.”
- SupportedCommissioner Andrius Kubilius said the Commission could not offer the additional funding sought.LRT English: “Andrius Kubilius, the European commissioner for defence and space, told LRT on Wednesday that the commission had sent its response but could not offer the additional funding the Baltic states had sought.”
- SupportedKubilius suggested using additional SAFE funding as one possibility.LRT English: ““One possibility now is to make use of additional funding under the SAFE instrument.””
- SupportedThe three countries’ defence ministers requested €500 million in late September to strengthen drone defences.LRT English: “Defence ministers from the three countries sent a letter to the European Commission in late September requesting urgent financial support to strengthen defences against drones.”
- SupportedSeveral stray drones entered Baltic airspace this year amid air attacks between Ukraine and Russia.LRT English: “Several stray drones have entered the Baltic airspaces this year amid air attacks between Ukraine and Russia.”
- SupportedThe Baltic states sought an anti-drone system that could be a model for other EU countries.LRT English: “sought the funding to develop an anti-drone system that could also serve as a model for other European Union countries.”
- SupportedKaunas said: “Air defence and anti-drone solutions are important not only for our region but for all of Europe. Lithuania has taken the lead in developing an anti-drone air defence system.”LRT English: ““Air defence and anti-drone solutions are important not only for our region but for all of Europe. Lithuania has taken the lead in developing an anti-drone air defence system,” Kaunas said.”
- SupportedKubilius said a new SAFE call would be announced soon because €21 billion remained after the first call.LRT English: ““We will announce a new call in the near future, because 21 billion euros remained after the first call,” Kubilius said.”
- Partly supportedSome anti-drone funding may be available through the Integrated Border Management Fund, with sums far below €500 million.LRT English: “Funding for anti-drone measures may also be available through the Integrated Border Management Fund, LRT understands, although the sums involved would be far below the 500 million euros requested by the Baltic states.”
- SupportedSAFE provides €150 billion in favourable defence-procurement loans, with repayment periods up to 45 years and advance payments up to 15%.LRT English: “The Security Action for Europe, or SAFE, instrument, launched last year, provides 150 billion euros in favourable loans for defence procurement across the EU. The scheme offers loans with repayment periods of up to 45 years and advance payments of up to 15%.”
- SupportedLithuania has access to up to €6.375 billion in SAFE loans, which it plans to use for defence projects including a land forces division, the Baltic Defence Line and air defence.LRT English: “Lithuania has been allocated access to up to 6.375 billion euros in SAFE loans. The government plans to use the funds to establish a land forces division, develop the Baltic Defence Line, strengthen air defence”
- SupportedLithuania’s Finance Ministry submitted its first SAFE loan request, for €1.06 billion, in October.LRT English: “In October, Lithuania’s Finance Ministry submitted its first request to the European Commission for a 1.06-billion-euro loan under the scheme.”