Poland’s government wants to upgrade with EU loans from the SAFE program. In Warsaw, the dispute over repayment escalates.
Warsaw – Prime Minister Donald Tusk wants to arm Poland – also with EU money. The cabinet in Warsaw approved the terms of the EU program Security Action for Europe (SAFE), which provides 150 billion euros in cheap loans for armaments. Poland is said to be the biggest beneficiary with 43.7 billion euros. This means that the country secures around 29 percent of the total loan volume.
After the cabinet meeting, Defense Minister Władysław Kosiniak-Kamysz told the news agency PAP According to this, the first funds could flow as early as March – provided that parliament approves the draft law and the right-wing conservative head of state Karol Nawrocki signs it. But while the government approved the proposed law in the cabinet, an interdepartmental dispute over repayment is causing unrest in Poland.
Poland wants to finance military projects with EU credit
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After PAP-The Polish Ministry of Defense has submitted 139 classified projects that will benefit from SAFE funds. The planned investments include air defense systems (Piorun), infantry fighting vehicles (Borsuk) and Krab self-propelled howitzers. The purchase of Airbus tanker aircraft is also planned.
In total, more than 80 percent of the funds will flow into the Polish defense industry. This is intended to further expand the super army planned in Poland. Some projects are also planned in cooperation with European partners and Ukraine. The state development bank BGK is responsible for processing the loans as the borrower, while the Ministry of Finance provides the guarantee.
Ministry of Finance and Defense Department in Poland in a clinch
A central question remains unanswered: Who will pay back the loans? The Ministry of Finance takes the position that the repayment must come from the defense budget – after all, the Ministry of Defense benefits from the funds. The military leadership disagrees: the defense budget is not designed for this. Additional repayment obligations would use up all available resources and jeopardize the ongoing modernization of the armed forces.
The problem is not new: in the past four years, Warsaw has concluded defense contracts worth more than 55 billion euros – mostly on credit. Tanks, howitzers and missile systems from South Korea as well as HIMARS systems and Apache helicopters from the USA were purchased with loan financing. The repayment of these loans begins in 2027. With the SAFE program, however, the first repayment installment is not due for another ten years; the total term is 45 years. The annual interest alone is estimated at over 1.3 billion euros. Defense Minister Kosiniak-Kamysz expressed the hope that part of the loans could be forgiven within the term – a stated strategic goal of the government.
EU SAFE program
In view of the threats from Russia, the EU is massively arming itself. A new EU project called SAFE (Security Action for Europe) started in May 2025. The program’s loans, which are secured through the EU budget, are intended to enable member states to invest in joint defense projects on very favorable financing terms – for example, to purchase additional air defense systems or ammunition.
In contrast to other large EU countries such as France, Italy and Spain, Germany does not want to take advantage of the loans for the time being, as the Federal Republic can get loans on the financial markets at very favorable conditions even without EU support. However, German companies could receive orders financed through the program.
Polish leadership argues about EU defense loans: President Nawrocki stands in the way
In addition to the departmental dispute, a controversy has also broken out between the government and the president over who will be responsible for repaying the debt. Nawrocki spoke out against the European SAFE program at a meeting of the National Security Council. It should “not become a support for the crisis-ridden economy of our western neighbor,” he said. What is meant is Germany. According to the political right in Poland, SAFE provides contracts primarily to the German and French arms industries. Polish industry and supplier countries such as Turkey and South Korea would be disadvantaged.
Prime Minister Donald Tusk reacted sharply: “This is an attempt to destabilize the whole of Europe,” he criticized the right-wing camp. He also warned PAP According to him, there is a creeping risk “that Poland will… European Union The dispute is typical of the front position in Warsaw since Nawrocki’s election in 2025. Since then, the important EU and NATO state has no longer spoken with one voice on strategic issues.
Poland feels particularly threatened by Russia and has been rearming heavily for years. The SAFE loan program from 2025 is intended to give EU states more resources for arms purchases against a more aggressive Russia. According to plans by the Ministry of Defense, Poland wants to use it to buy defensive weapons against drones and missiles, helicopters and boats. Germany does not use EU loans, but relies on its own resources. (Sources: PAP, dpa, Defense Express) (cs)
date: 2026-02-12 19:59:00
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