The agreement was signed at the Office of the Prime Minister. Recall that the EU SAFE loan in Poland stirred a lot of emotions. The government that took out the loan had assured from the beginning that the interest rate would be low. At the same time it could not specify what the rate would be, nor what the costs of this financial obligation would be. Opponents were representatives of opposition parties and also President Karol Nawrocki, who, together with the President of the National Bank of Poland, proposed – claiming it was better and, above all, cheaper – SAFE 0%. That, however, did not gain government approval.
Poland was the first to sign a SAFE agreement
Poland, the first of 19 beneficiaries of the SAFE program, signed an agreement to take out the loan. Recall that not all EU countries were interested in participating in this program. Germany, for example, did not decide to join.
The agreement was signed in the presence of Prime Minister Donald Tusk, but not by the head of government. From our side, the agreement was signed by Deputy Prime Minister, Minister of National Defence Władysław Kosiniak‑Kamysz and Minister of Finance and Economy Andrzej Domański. On the other side, EU Commissioners for Defence Andrius Kubilius and for Budget Piotr Serafin signed. The amount Poland will be able to use is €43.7 billion.
“Today the credit line will be activated. How much we use depends on us. We have prepared projects for the entire amount of almost €44 billion,” said the Minister of National Defence.
The money will stay in Poland
The government assures that most of the borrowed money will be earmarked for purchasing military equipment from Polish companies. According to the government, 89% of the total amount will go to Polish industry and the economy. Companies such as MESKO in Skarżysko‑Kamienna, Wojskowe Zakłady Elektroniczne in Zielona Góra, Fabryka Broni “Łucznik” in Radom, and Huta Stalowa Wola will benefit.
As Władysław Kosiniak‑Kamysz assured during the signing, Poland is ready to use the entire amount, i.e., nearly €44 billion. He also pointed out that we must hurry to be able to decide on purchases independently.
“May is going to be very rich. Dozens of contracts to sign. More to be annexed, because by the end of May we can place orders as a single member state, in a procedure that is only for one state, and after May 30 we can place orders with other states for the same equipment” – said Deputy Prime Minister Władysław Kosiniak‑Kamysz.
The government assures that there will be a way for the police, fire brigade, civil defence and border guard to also benefit from the money. Such a possibility would exist if the loan were approved by the president.
Money for security
During the signing of the SAFE agreement, both government representatives and EU commissioners emphasized that the money from the loan is primarily intended to improve Poland’s and the entire European Union’s security. It is about purchasing armaments that deter potential aggressors, strengthening NATO’s eastern flank, including anti‑drone systems, and modernising the Polish army, so that it becomes a modern force capable of facing any threat.
The Minister of National Defence Władysław Kosiniak‑Kamysz stressed this week that the government will do everything to increase the size of the Polish army as well. By 2030 it should have 500,000 soldiers, including 300,000 professional uniformed personnel and 200,000 in civilian service.
See also: SAFE was meant to unite, but increasingly divides. After the meeting at the Presidential Palace, more concrete details?
