Members of the European Parliament from the Security and Defence Committee (SEDE) visited Polish arms manufacturers to see how the domestic defence industry is coping with rising demand and Europe’s growing need to strengthen its security. In the MEPs’ view, production readiness is particularly important in the context of the SAFE programme—nearly PLN 200 billion in loans intended to support Poland’s defence sector and enable a major increase in production and overall defence capacity.
“SAFE is a very good programme because it provides new financial resources for Poland and for all European countries. Poland applied for almost one third of the funds from the entire €150 billion programme. It is set to receive €44 billion,” Nicolás Pascual de la Parte, a Spanish European People’s Party MEP and SEDE member, told Newseria. “The application has already been approved by ECOFIN and the European Commission. This means that disbursements will begin this year and will be spread over the following years.”
Government spokesperson Adam Szłapka said on social media that EU member states—at the level of finance ministers—have formally approved the SAFE programme, completing the EU-level process. The first funds are expected to reach Poland as early as March.
“These funds can be used over a period of 10 years, and only after that does repayment begin, at a very low market interest rate,” Nicolás Pascual de la Parte explained. “The rate is so low because the European Union has a high AAA credit rating from international agencies, which allows it to obtain special borrowing terms.”
Poland is the programme’s largest beneficiary. Nearly PLN 200 billion is to be allocated to 139 defence projects, although the full list has not been disclosed. Representatives of the Presidential Chancellery have called for information on what exactly will be ordered and who will deliver it. The Ministry of National Defence has stressed that the document is classified for security reasons—following arrangements with the European Commission—yet after formal procedures are completed and technical details are redacted, the list is to be made public.
“The SAFE programme is extremely important for a frontline country like Poland, because we must increase our defence capabilities, invest in the defence industry, strengthen the army and improve citizens’ security—all in the context of what is happening across our eastern border. It is hard to understand arguments that SAFE is inadequate or too expensive. There is nothing more costly than the security of Polish women and men,” said Marta Wcisło, a Civic Coalition (KO) MEP and SEDE member.
The cost-of-loans argument is being raised by parliamentary opposition parties, which voted against legislation on the SAFE Financial Instrument for Increasing Security—i.e., the creation of national structures to implement the programme. Their list of concerns is longer. Among other things, the opposition fears that disbursements could become dependent on potential disputes between Polish authorities and the European Commission.
“There are no conditionality mechanisms in SAFE. It is the cheapest programme and the best source of financing, which, first, does not burden the state budget and, second, provides a 10-year grace period,” the KO MEP argued. “The companies we visited need to buy machinery and equipment to expand their production capacity. They need investment—and they will not find a loan this cheap that they also won’t have to start repaying immediately. During our visit to ammunition and weapons factories, we heard that they could produce more, for example Piorun missiles, if they had the right equipment and machinery. So this money and these investments are simply essential.”
The Piorun missile is produced by Mesko. It is regarded as one of the most effective short-range air-defence systems in the world. According to Poland’s Ministry of State Assets, it has become an export hit, purchased by, among others, Estonia, Norway and Sweden, and it has also proven itself during the war in Ukraine. The ministry has indicated that SAFE funds could be used, among other things, to expand production of these missiles not only for the Polish Armed Forces but also in larger volumes for export. Mesko’s plant in Skarżysko-Kamienna was one of several industrial sites visited by SEDE MEPs during their trip to Poland.
“By investing money in the economy, we create new jobs. This means revenue for municipalities, pumping enormous sums into the Polish economy, and becoming independent from certain suppliers,” Marta Wcisło emphasized.
As the government stresses, 80% of the nearly PLN 200 billion from SAFE is to go to Polish defence-sector entities. These include Huta Stalowa Wola, which—according to data from the Armament Agency—is set to receive PLN 20 billion for the production of Krab self-propelled howitzers, Borsuk infantry fighting vehicles and Rak self-propelled mortars. The programme could also support foreign orders for these products. Other Polish plants and cities are also expected to benefit, including Tarnów, Czernica, Pionki, Bydgoszcz, Radom, Gdynia, Sanok and Laskowice.
“Putin has no intention of stopping in Ukraine. He has switched into a war mode, and if we do not arm ourselves and demonstrate our readiness and resilience—showing that our defensive response would be painful—he may test allied unity. We have very little time,” said Michał Szczerba, a Civic Coalition MEP and SEDE member.
SAFE funds are also expected to help finance the SAN system, which the government has described as the largest counter-drone solution in Europe. It is to comprise 18 batteries of counter-drone systems, 52 firing platoons, 18 command platoons and 703 vehicles. On 30 January, the Ministry of National Defence announced the signing of a contract with a consortium consisting of the Polish Armaments Group (PGZ) and Kongsberg Defence & Aerospace to deliver air-defence systems with the capability to counter unmanned aerial vehicles.
According to government plans, SAFE funding will also be allocated to the construction of the “East Shield” (Tarcza Wschód). Twenty-six of the 139 projects submitted by Poland in its loan application concern strengthening security along Poland’s—and the EU’s—eastern border.
“If we set 2030 as the point by which we must be fully ready to defend ourselves, we have only a few dozen months to transform the defence industry at an absolutely express pace—so that it is flexible and able to produce at mass scale, for example drones. We must build an anti-drone wall, we must build cyber security, also drawing on other countries’ experience. Most importantly, we will not find this money anywhere else than in a fund guaranteed by the European Union’s budget,” the KO MEP concluded.
