Polish Prime Minister Donald Tusk announced Poland is likely to sign the SAFE loan agreement this Friday, urging patience as the deal nears completion.
Deadline to End of May
The government aims to finalize the agreement with the European Union by May 30th, the last day for implementing individual contracts allowing EU funds to be spent in domestic facilities—a key aspect of the program’s initial purchases.
After this deadline, stricter EU regulations could force joint purchases with other EU partners, potentially removing the exclusive rights of Polish defense industries for these orders. The ability to spend funds locally is intended to rapidly expand production capacity even before the commencement of further community-wide purchases.
€43.7 Billion for Poland
The EU’s SAFE program provides €150 billion in support, including low-interest loans, primarily for military equipment purchases, especially those produced in Europe. Poland has been allocated a total of €43.7 billion.
These funds will finance defense projects outlined in Poland’s investment plan, including the “Eastern Shield” program, anti-drone systems, air defense, artillery, and modernization of military transport infrastructure. The government has declared that 89% of the funds will be invested in Polish industry.
Loan Details and Prior Veto
In mid-March, President Karol Nawrocki vetoed the law implementing SAFE, which proposed creating a special fund for EU funds. In response, the government adopted a resolution regarding the Polish Armed Forces Program, authorizing the Minister of National Defense, Minister of Finance, and Economy to sign the agreement and related documents for the SAFE loan.
The Bank Gospodarstwa Krajowego will take out the loan on behalf of the Armed Forces Support Fund (FWSZ). The loan will be repaid from funds not included in the minimum defense spending limit.
Confirmation from Defense Minister
Defense Minister Władysław Kosiniak-Kamysz similarly stated on Sunday, May 3rd, that if all goes well, the SAFE agreement will be signed on Friday, opening a credit line for equipment purchases, with some contracts already in place, particularly for counter-drone equipment and cybersecurity.
Tusk’s Announcement
Prime Minister Donald Tusk, following a meeting with the Pope, indicated on Monday, May 4th, during a conference in Yerevan, Armenia, that Poland would likely be ready to sign the SAFE agreement on Friday, adding, “Be patient, it’s only five days.”