Signatures have been submitted and billions are being raised. Poland is reaching for record money

Poland was the first Member State to sign an agreement with the European Commission regarding the SAFE program. The document was concluded on May 8, and a day later a similar agreement was signed by Lithuania.

The agreement was signed by government representatives, including the Deputy Prime Minister and the Minister of National Defense Władysław Kosiniak-Kamysz and the Minister of Finance Andrzej Domański. The Prime Minister also attended the event Donald Tusk.

EUR 43.7 billion for Poland. The biggest beneficiary of the program

Under the SAFE program, Poland will receive as much as EUR 43.7 billion, i.e. over PLN 180 billion. This is the largest amount among all countries participating in this mechanism.

The total pool of funds for 19 EU countries is EUR 150 billion. These funds will come from bond issues by the European Union on capital markets.

The government emphasizes that the money is to be allocated primarily to the development of defense, the arms industry and security-related technologies.

Over 120 projects and key dates

Poland has submitted over 120 projects to the program, which are to be completed by the end of 2030. These include investments in unmanned systems, anti-aircraft defense and artillery.

The key date is May 30, 2026. Until then, it will be possible to place orders as a single country. After this date, you will need to cooperate with a partner from another EU country.

Additionally, at least 65 percent components of the purchased weapons must be manufactured in the European Union.

How will SAFE money be paid?

Signing the contract does not mean immediate receipt of the full amount. The program works like a credit line from which funds will be released gradually.

The loans will be taken out by Bank Gospodarstwa Krajowego in tranches every six months – in October and April. In May, Poland is to receive the first advance payment of EUR 6.5 billion.

The repayment of liabilities has been spread over 45 years, with no need to repay the capital for the first 10 years.

Government: savings of up to PLN 80 billion

Minister of Finance Andrzej Domański assessed that the SAFE program is the most advantageous source of financing for army modernization. According to the government, lower debt servicing costs may bring savings of up to PLN 80 billion.

Additionally, as many as 89 percent funds allocated to Poland are to go to the domestic industry, which is to strengthen the economy and the arms sector.

Criticism of the program and doubts

However, the SAFE program is also controversial. The head of the National Security Bureau indicates that a debt incurred for 45 years in a foreign currency may involve political and financial risk.

Attention is drawn to, among others: to the lack of certainty as to future interest rates and the possibility of external institutions influencing financing conditions.

Presidential veto and consequences for the program

March 12, president Karol Nawrocki vetoed the bill implementing the SAFE program into Polish law. The decision did not block strictly military investments, but limited the possibility of financing purchases for other services, such as the police or border guard.

The president and the chairman Adam Glapiński proposed an alternative solution to financing military expenditure.

The SAFE program is intended to change the Polish army and economy

The government argues that funds from the SAFE program will be groundbreaking for the modernization of the Polish Armed Forces. The investments will include military equipment, infrastructure and defense technologies.

The program is also intended to strengthen the European arms industry and increase the economic potential of member states.