Sejm Passes SAFE Act, Fitch Maintains Poland's Negative Rating Outlook

The Sejm of the Republic of Poland finalized work on the SAFE (Security Architecture Financing Effort) Act, which forms the foundation of a new system for financing army modernization. The program envisions the release of substantial financial resources for arms purchases, which Prime Minister Donald Tusk called a "cosmic amount." The government argues that in the face of geopolitical threats, Poland must have permanent and stable sources of defense financing, which the previous budgetary framework does not provide. The act, however, sparked sharp political disputes; the ruling coalition fears a veto from President Karol Nawrocki, while opposition circles and the president criticize the conditionality mechanisms and the risk of non-transparent fund management. Simultaneously with the legislative process, the international agency Fitch Ratings published its latest report on Poland's creditworthiness. The rating was maintained at "A-", which Finance Minister Andrzej Domański interprets as proof of responsible economic policy. Nevertheless, the agency maintained a negative outlook, justifying it with the high deficit of the government and local government sector and the rapidly growing public debt. Fitch indicates that without fiscal consolidation, the risk of a future credit rating downgrade is real, which could increase the cost of servicing debt incurred, among other things, for armament purposes under SAFE. Rating agencies have become key reviewers of the Polish economy after 1989, influencing the trust of foreign investors and the yield of bonds issued by the state. Public debate has also included threads concerning the influence of foreign capital on the Polish defense sector. According to reports, German conglomerates plan to invest nearly 7 billion zlotys in Polish plants, which is intended to be part of shortening supply chains and becoming independent from Chinese components. Government critics, including Prof. Sławomir Cenckiewicz, emphasize, however, that the very structure of SAFE may be insufficient without the transfer of the latest technologies. The dispute over SAFE is thus becoming not only a debate about money but also about technological sovereignty and the directions of Polish defense diplomacy. „Decyzja Fitcha potwierdza odpowiedzialną politykę gospodarczą państwa.” (Fitch's decision confirms the state's responsible economic policy.) — Andrzej Domański Fiscal Indicators According to Fitch Ratings: Credit rating: A- → A- (maintained); Outlook: Negative → Negative (maintained); Main risk factor: Political uncertainty → Deficit and public debt The SAFE program also stirs emotions on a social level. The government's communication tools, including a failed attempt to promote the program using artificial intelligence, became the object of opposition mockery. Meanwhile, Minister Domański, asked about financial details, including the interest rates on loans taken under the program, avoided clear declarations, which fuels concerns about the final cost of this historic modernization. The situation remains dynamic, and the eyes of the political class are now turned to the Presidential Palace.