Following talks in Brussels, Poland was assured it will receive its full €43.7 billion allocation from the European Union’s SAFE program, despite a presidential veto of implementing legislation.
Poland Remains in SAFE Program
Magdalena Sobkowiak-Czarnecka stated on Wednesday, March 18th, after meetings at the European Commission, that numerous questions arose regarding Poland’s continued participation in SAFE. These doubts emerged following President Karol Nawrocki’s decision to refuse signing the law implementing the EU mechanism.
The government plenipotentiary emphasized, however, that Poland’s position remains unchanged: “Nothing changes and Poland remains part of SAFE.” She added that Poland is still set to receive €43.7 billion and “not a single euro from the SAFE mechanism will be lost.”
Law Focused on Spending, Not SAFE Participation
Sobkowiak-Czarnecka clarified that the law vetoed by the President did not concern Poland’s participation in SAFE itself, but solely the method of disbursing the funds within Poland. Some member states inquired whether funds allocated to Poland had been returned for reallocation, but she confirmed this was not the case.
“The money is not back on the table. We have a concrete plan that we submitted to Brussels,” she stated, assuring that Poland aims to sign all necessary agreements as quickly as possible.
European Commission Prepares Loan Agreements
The European Commission is currently drafting a standard loan agreement for participating countries in SAFE, including Poland. This single template will apply to all participating nations. A total of 19 EU member states have applied to SAFE.
Currently, the Commission can sign loan agreements with 16 countries whose investment plans have already been approved.
Agreement Signing Delayed, But Not Due to Poland
Sobkowiak-Czarnecka recalled that the agreements were originally scheduled to be signed in mid-March, but the deadline has been postponed. She stressed that this delay is not due to Poland’s actions or the lack of a signature on the national law.
“There is a slight delay, but not because of Poland,” she said, anticipating the signing of the agreement between late March and April. According to assurances received in Brussels, the first funds could reach Poland as early as April.
Government Adjusts Implementation Method
On Friday, the government adopted a resolution regarding the Polska Zbrojna program, authorizing the Ministers of Defense and Finance to sign the agreement concerning SAFE. This is a response to the President’s veto of the law establishing a special fund at Bank Gospodarstwa Krajowego to manage the EU loan funds.
Under the new arrangement, the SAFE loan will be taken out by BGK on behalf of the Armed Forces Support Fund. The government also noted that the loan repayment will be funded from sources not included in the minimum defense spending limit.
Poland is Largest SAFE Beneficiary
Poland is expected to be the largest beneficiary of the SAFE program among the 19 EU countries that have applied. The European Commission has allocated €43.7 billion to Poland to finance defense projects outlined in the Polish investment plan, which was finally approved by member states on February 17th.
The entire EU SAFE program provides €150 billion in support, primarily in the form of low-interest loans for the purchase of arms and military equipment, especially those produced in Europe.