Poland’s President vetoed the SAFE implementation law, prompting government action to secure EU funding for defense and internal security, with a focus on bolstering domestic industry.
Presidential Veto and Government Response
President Karol Nawrocki vetoed the law implementing the EU’s SAFE mechanism on March 12th. In response, the Council of Ministers adopted a resolution regarding the Polish Armed Forces Program, authorizing the Minister of National Defence, Finance, and Economy to sign agreements related to the SAFE loan from the Bank of Gospodarstwa Krajowego (BGK) for the Armed Forces Support Fund.
The BGK’s financial obligations under the SAFE loan will be guaranteed by the State Treasury.
Alternative Funding Proposals
Earlier in March, the President, alongside the Governor of the National Bank of Poland (NBP) Adam Glapiński, presented an alternative to the EU’s SAFE, suggesting a revaluation of Poland’s gold reserves through “active reserve management” to generate substantial profits. The NBP estimates unrealized gains from gold revaluation at 197 billion złoty, potentially available as profit over several years, earmarked solely for defense.
Parliamentary Debate and Competing Bills
Sejm Speaker Włodzimierz Czarzasty announced he would not assign a number to the presidential draft law concerning “Polish SAFE zero percent,” opting instead to commission comprehensive analyses of the proposal, specifically regarding the realism of its funding sources.
The Polish People’s Party (PSL) has submitted a bill for the Polish Investment Defence Fund, intended to address perceived flaws in the presidential proposal. This bill aims to correct errors in the presidential project.
Fund Allocation and Industrial Impact
The PSL’s draft maintains much of the presidential bill but includes provisions for funding internal security services under the Ministry of Interior and Administration (MSWiA), military infrastructure, and military healthcare. It also seeks to limit the presidential camp’s control over the fund.
The SAFE implementation law proposed the Financial Instrument for Increased Security, managed by BGK, allowing the government to access low-interest loans for rapid defense enhancement. The government stated 89% of these funds would go to Polish arms manufacturers, with support also extending to police and border guard forces.
Poland’s SAFE Allocation and Benefits
Poland’s application to the program totaled 43.7 billion euro and received EU approval, making Poland the largest beneficiary. The government reiterated its commitment to directing 89% of these funds to Polish arms companies.
Statements from Government Officials
Government Plenipotentiary for SAFE, Magdalena Sobkowiak-Czarnecka, clarified that the law on the President’s desk wasn’t about whether Poland should join SAFE—a decision already made—but how the funds would be distributed domestically. She stated the veto primarily hinders the distribution of funds to the Police, Border Guard, State Protection Service, and military mobility projects.
Deputy Minister of Interior and Administration Czesław Mroczek emphasized the need to equip internal security services, noting projects for these services total over 7 billion złoty. He also stressed the importance of defense industry capacity for equipment regeneration, stating it is integral to national defense.
