The Polish right fears EU’s €40 billion armament loan comes with dangerous strings attached

Poland stands to get the largest chunk of a new joint EU loan for boosting military defense, but many are calling out the conditions attached

FILE - The leader of Poland's ruling conservative party, Jaroslaw Kaczynski, front row center, attends the first session of the lower house, or Sejm, of the newly-elected parliament in Warsaw, Poland, on Nov. 13, 2023. The national conservatives who have ruled Poland for eight years are expected to finally relinquish power this week to a centrist bloc led by political veteran Donald Tusk. The transition will come in several steps over three days, starting Monday Dec. 11, 2023, nearly two months since Poles turned out in huge numbers to vote for change in a national election. (AP Photo/Czarek Sokolowski, File)
By Remix News Staff
5 Min Read

Poland is facing an internal dispute over the EU’s Security Action for Europe (SAFE) program. Launched in 2025, SAFE is meant to provide €150 billion in long-term, low-interest loans through 2030 for joint purchases of weapons and other military equipment to help boost the bloc’s defense capabilities and military sector. Poland is expected to be its largest beneficiary, receiving over €40 billion.

There are some requirements tied to the use of the loan. Equipment purchased must be made in Europe, while the money can be withdrawn over violations of a conditionality mechanism, e.g., rule of law concerns.

While Prime Minister Tusk has been pushing hard for the loan, President Nawrocki is urging caution, not only the terms of the loan but also because he and his constituents feel it is mostly favorable to Germany, reports Politico.

Confederation politician and deputy speaker of the Sejm, Krzysztof Bosak, also weighed in on the matter on X, calling the SAFE program “KPO on steroids,” referring to Poland’s  National Reconstruction Plan.

“As in the case of the KPO, the European Commission has absolute power here, and if the Brussels oligarchs do not like, for example, the government elected by Poles in the next elections, the SAFE funds can be immediately blocked. This alone is reason enough not to fall into this trap,” Bosak wrote.

The loan will also be denominated in euros, the MP pointed out, which poses a significant exchange rate risk for Poland. He further warns that even if member state representatives agree to it, it is unclear to what extent it will be implemented, because “independent purchases under SAFE are only possible for the ridiculously short period until the end of May this year.”

“Tomorrow in the Sejm, we will be voting ‘pig in a poke’ – we agree to take out and repay the loan, but we still don’t know if and what we will be able to buy with that money,” wrote Bosak, adding that the need to rearm the Polish military is absolute. However, the money for this must be found elsewhere.

Germany’s ambassador to Poland also posted on X in defense of SAFE: “Followed the #SAFE debate in Sejm. Surprising controversy about a program of €150 billion, from which Poland get’s the lion’s share of €44 billion. SAFE is designed to boost European defence capabilities. Given the threat by Russia there is no time to waste.”

Law and Justice MPs were quick to respond, as cited by Do Rzeczy. “The German ambassador is worried about the SAFE debate. He’s probably worried about the expected stock market crash of Rheinmetall AG if SAFE is rejected in Poland and Tusk doesn’t deliver on the issue,” wrote MP Janusz Kowalski.

“Symbolic. The German Ambassador is monitoring the legislative process in the Polish parliament for the bill implementing the German SAFE program… Mr. Ambassador, if the SAFE program is so wonderful, why hasn’t your country decided to take advantage of it?” commented Rafał Bochenek, PiS spokesman.

Berger responded that Germany has a AAA rating and can therefore obtain cheaper financing. He added that “But because we want to support the rapid development of defence capabilities in Europe we have agreed – under the Polish Presidency – to contribute and co-fund the establishment of SAFE.”

The EU is under increasing pressure to revamp its defense capabilities and industry, given a very unstable geopolitical situation, war in Ukraine, and uncertainty over continued American support for NATO at previous levels. All of Poland has been in agreement with this reality, but how it achieves its defense continues to be disputed.

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