Poland is set to become the first country to sign a loan agreement under the European Union’ SAFE defence funding programme, sources at the European Commission have told the Polish news agency PAP.
EU commissioners Andrius Kubilius (right) and Piotr Serafin (left) at a European Commission meeting in Brussels, January 2025.EPA/OLIVIER HOSLET
The deal is expected to be signed in Warsaw on Friday by EU commissioners Piotr Serafin and Andrius Kubilius, alongside Poland’s Defence Minister Władysław Kosiniak-Kamysz and Finance Minister Andrzej Domański.
The commissioners will then travel to Vilnius, with Lithuania also expected to be among the first countries to receive funds under the scheme.
Poland is the programme’s largest single beneficiary, with an allocation of EUR 43.7 bilion.
It is awaiting an advance payment of around EUR 6.5 billion, which the European Commission, the EU’s executive arm, plans to transfer by the end of May.
Friday’s signing is conditional on the completion of internal EU procedures.
„We are working to ensure all formalities are ready by Friday,” a Commission source told PAP.
Nineteen EU member states are awaiting loan agreements under SAFE in total.
Ten, including Poland, have already approved and returned the draft contract.
Once agreements are signed, the EC will be able to raise funds on capital markets and pass them on to beneficiaries.
Poland’s funds are earmarked for projects including its Eastern Shield border defence programme, anti-drone and air defence systems, artillery and military transport infrastructure.
The government has said 89 percent of the money will flow into Polish industry and the wider economy.
The signing follows a political dispute in Warsaw: in mid-March, President Karol Nawrocki vetoed legislation that would have created a dedicated fund for the EU money.
The government responded by passing a resolution authorising the defence and finance ministers to sign the loan agreement on its behalf.
The Security Action for Europe (SAFE) programme provides up to EUR 150 billion in low-interest loans for military procurement, largely aimed at equipment produced in Europe.
SAFE was established last year to help EU countries strengthen their defence capabilities amid growing threats from Russia and uncertainty over the future level of US engagement in Europe.
The programme also aims to reduce reliance on US-made weapons and boost Europe’s defence industries.
(ał)
Source: PAP
Radio Poland