The Sejm has passed an act implementing the EU's SAFE program, which will enable Poland to take out preferential defense loans totaling nearly €44 billion. While the government emphasizes the unprecedented scale of support and favorable financial terms, the opposition warns of a threat to sovereignty and a new conditionality mechanism. The fate of billions now depends on President Karol Nawrocki's decision, who has not ruled out using his veto power.

Billions of euros for military

The Sejm passed a bill enabling Poland to take out a €43.7 billion loan under the SAFE program for army modernization.

Political polarization

Law and Justice (PiS) and Confederation voted against the act, arguing that this mechanism limits Poland's sovereignty and favors the German industry.

Presidential veto

President Karol Nawrocki is considering blocking the act; however, the government claims it can sign the agreement with the European Commission without this document.

Favorable debt terms

Financing offered by the European Investment Bank provides for repayment over 45 years with a 10-year grace period for capital repayment.

The Sejm has passed a key act concerning the SAFE program, opening the way to obtain €43.7 billion for the modernization of the Polish Armed Forces. The document was supported by 236 MPs from the ruling coalition, while 199 parliamentarians from Law and Justice (PiS) and Confederation voted against. The program provides for a 45-year repayment period with a 10-year grace period, which economists say makes it a more attractive offer than standard commercial market borrowing. Minister Magdalena Sobkowiak-Czarnecka emphasizes that Poland is the largest beneficiary of the fund, which guarantees the financial stability of the Polish defense industry. Since Russia's full-scale aggression against Ukraine in February 2022, Poland has drastically increased defense spending, aiming to reach 4 percent of GDP, making it a leader within the North Atlantic Alliance. The opposition, led by Tobiasz Bocheński, calls the program a "chain on Polish independence." Critics point to provisions on conditionality, which they believe could be used by the European Commission for political pressure, similar to disputes over funds from the KPO. There are also allegations of favoring the defense industry from Germany and France at the expense of purchases from the USA or South Korea. President Karol Nawrocki is currently analyzing the act, and government representatives declare readiness for talks, though they note that the agreement with the EC can be signed even in the case of a presidential veto of the technical act itself. „The SAFE program is a chain on Polish independence. What has been presented to us is absolutely unfavorable for Poland, and other countries will mainly benefit from it.” — Tobiasz Bocheński Sejm Vote on the SAFE Act: For: 236, Against: 199, Abstained: 4 190 billion PLN — is the total amount of loans available to Poland under SAFE Argumentation of Parties in the SAFE Fund Dispute: Financing Cost: Higher interest rates on commercial markets → Preferential loans for 45 years; Sovereignty: Full freedom in purchasing decisions → Possible political conditionality by the EC; Defense Industry: Global purchases (USA, South Korea) → Funding for European projects Disputes over sovereignty in the context of EU funds date back to the 1990s, when Poland was preparing for accession, and skeptical circles warned against excessive influence from Brussels on national policy. Emphasizes financial benefits and the necessity of army modernization with EU support, ignoring sovereignty concerns. | Highlights the threat of losing independence and the risk of political blackmail from EU institutions.

Mentioned People

  • Karol Nawrocki — President of Poland considering vetoing the act on the SAFE program.
  • Magdalena Sobkowiak-Czarnecka — Government plenipotentiary for the SAFE program.
  • Tobiasz Bocheński — PiS MEP criticizing the program as a threat to independence.
  • Jacek Saryusz-Wolski — Presidential advisor on European affairs, opponent of taking on debt under SAFE.