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US Attacks on Iran Mean a Massive Ripple Effect on CEE
2 March 2026
Last week the European Commission approved a second major funding package for the defence industry via the SAFE mechanism. CEE countries are the primary beneficiaries, receiving approximately 99 billion euros – roughly two-thirds – of the total 150-billion-euro EU budget allocation. Poland (43.7 billion) and Romania (16.7 billion) will get the most, while Hungary’s piece of the pie is conditional on its rule of law.
The majority of the funding will go towards procurement to support the ‘Shield East’ initiative to protect Europe from the Russian threat. The investment is expected to significantly boost small and medium-sized enterprises (SMEs) in the defence sector. The Three Seas Initiative countries will also tap into the opportunity.
Ce vis pacem in the seas
GLOBAL/REGIONAL
The European Commission has approved a second wave of defence financing under its Security Action for Europe (SAFE) programme, with an estimated 74 billion euros in loans to eight member states including Poland, Estonia, Greece, Italy, Latvia, Lithuania, Slovakia and Finland.
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