Poland’s Polish People’s Party (PSL) submitted a bill for a Defense Investment Fund, but it is already drawing criticism from legal experts and the government.
PSL Attempts to “Fix” Presidential Proposal
The Polish People’s Party (PSL) submitted a bill concerning the Polish Defense Investment Fund to the Sejm last week. Deputy Prime Minister, Minister of National Defence, and PSL leader Władysław Kosiniak-Kamysz stated the bill addresses flaws in the President’s SAFE 0% proposal.
Kosiniak-Kamysz added that the PSL’s proposal expands the fund’s scope to include services like the Police and Border Guard, as well as cybersecurity, special services, and military healthcare.
Government Control with Presidential and Prime Ministerial Representation
The PSL’s bill stipulates that the government would have “authority” over the fund, with representatives from both the President and the Prime Minister on the governing bodies.
PSL Seeks Broad Support, Faces Doubts
Kosiniak-Kamysz expressed confidence that the bill would be considered during the first session after the holidays, stating the PSL would not back down.
Legal Concerns Raised Over Constitutional Compliance
According to Onet.pl, the PSL’s bill has been sent to the Sejm’s Legislative Bureau and the Bureau for Expert Analysis and Regulatory Impact Assessment. Both opinions are reportedly critical.
Sejm lawyers reportedly believe the initiative may violate Article 221 of the Polish Constitution, which grants the government exclusive authority to propose legislation regarding financial guarantees. The “improved” SAFE 0% proposal is a parliamentary, not governmental, initiative. An informant described the errors as “like those of Nawrocki” and predicted the PSL will need to revise the bill.
Tusk Questions Funding Source
Prime Minister Donald Tusk previously expressed skepticism about the project, noting its similarity to the presidential proposal and its reliance on potential profits from the National Bank of Poland (NBP).
Tusk reiterated that any profits from the NBP must be transferred to the state budget according to law, to benefit citizens and national security.
Discussion Surrounding the SAFE Program
The presidential “SAFE zero percent” proposal emerged while the government’s bill implementing the EU’s SAFE mechanism was awaiting the President’s signature. The President and NBP Governor Adam Glapiński subsequently announced the possibility of revaluing Poland’s gold reserves, potentially generating substantial profits.
In response to the President’s veto, the Council of Ministers adopted a resolution on the Polish Armed Forces Program, authorizing the Minister of National Defence, the Minister of Finance, and the Economy to represent the Polish government in signing agreements related to a SAFE loan from the Bank of National Economy (BGK) for the Armed Forces Support Fund (FWSZ).
Redirecting funds from SAFE to FWSZ presents challenges, as funds from the FWSZ can only be used for military purposes, potentially excluding services and infrastructure. Poland’s application for €43.7 billion was approved by EU institutions.
