The SAFE programme could launch the largest stream of financing for Poland’s defence industry in years. Polska Grupa Zbrojeniowa estimates that companies within the group may receive up to around PLN 100 billion from projects carried out for the Polish Armed Forces. Negotiations cover, among other things, Borsuk infantry fighting vehicles, counter-drone systems, radars and military equipment.
“May is shaping up to be very intense. We are starting a marathon related to the likely signing of executive agreements for tasks that will be financed from SAFE funds. We have around 30 negotiation teams that are currently working together with teams from the Armament Agency on individual contracts,” said Adam Leszkiewicz, President of Polska Grupa Zbrojeniowa, in an interview with Newseria during Defence24 Days.
The European Union’s SAFE loan programme is worth €150 billion and is one of the largest mechanisms for financing the defence industry in the history of the EU. Poland is expected to be its largest beneficiary. The country is set to receive €43.7 billion, or around PLN 180 billion. A significant part of these funds is expected to go to domestic manufacturers of military equipment, including combat vehicles, air defence systems and radars.
“The agreement between the government and the European Commission will give us the executive ability to sign project contracts related to very specific tasks, products and services that we will carry out. We are in a hurry because we want to conclude these agreements by the end of May, so that Polish industry can start producing the equipment ordered by the Polish Armed Forces,” Leszkiewicz said.
According to the PGZ president, around 90 percent of the PLN 180 billion from SAFE is expected to go to Polish industry. PGZ assumes that at least half of these funds will be directed to companies within Polska Grupa Zbrojeniowa, as the group offers a broad product portfolio. Part of the money will also go, either later or in parallel, to private industry, depending on the specific products.
Under the assumptions of the SAFE programme, member states will receive funds in stages as individual projects are implemented. In Poland’s case, the first advance payment could amount to around €6.5 billion and may reach the country in May, after the agreement between the government and the European Commission is signed. The financing is intended to support both new orders for the army and the development of production capacity in the defence industry.
The programme is ultimately intended to increase the production of military equipment in Europe and accelerate the development of technologies related to air defence, counter-drone systems and reconnaissance.
“If these funds were not available, we might not be implementing some projects. I am referring to the extremely important SAN project, which concerns counter-drone protection. As part of this project, we are acquiring new competences. Perhaps later, thanks to the implementation of this programme, we will also be able to offer counter-drone protection products for export to other regions of the world,” said the President of Polska Grupa Zbrojeniowa.
The war in Ukraine has significantly increased interest in counter-drone systems, which have become one of the basic tools of the modern battlefield. According to analyses by the Stockholm International Peace Research Institute, European countries are allocating an increasing share of defence spending to counter-drone solutions, short-range systems and reconnaissance technologies.
As part of the SAN programme, one of the systems being developed is the so-called “monster from Tarnów”, designed by Zakłady Mechaniczne Tarnów. The solution uses a 12.7 mm multi-barrel Gatling-type machine gun intended to combat drones.
“Thanks to the SAN project and SAFE funds, we are launching serial production of the ‘monster from Tarnów’. This also applies to other products. Sajna radars are another good example. New Borsuk vehicles and Legwan technical support vehicles are also products that will be manufactured using these funds. We do not know what executive agreements financed solely from budget funds would have looked like, for example in terms of the number of new Borsuk vehicles, if SAFE funds had not been available,” Leszkiewicz said.
The Borsuk is an infantry fighting vehicle produced by Huta Stalowa Wola. It is intended to gradually replace the post-Soviet BWP-1 vehicles used by the Polish Armed Forces. In March 2025, the first executive agreement was signed for 111 vehicles in the basic version. The programme is one of the largest modernization projects currently being carried out by the Polish defence industry.
SAFE funds may allow the scale of orders to be increased and the production of further vehicles for the army to be accelerated.
“We have a framework agreement for Borsuk vehicles, but we need executive agreements. So far, we have contracts for 111 units, and thanks to SAFE we are negotiating new quantities,” said the PGZ president. “Negotiations currently concern around 150 units. We will see what happens next. These will be basic variants.”
In addition to orders for the Polish Armed Forces, exports are becoming increasingly important for the domestic defence industry, especially as the scale of global military spending continues to rise. According to SIPRI data, global military expenditure reached a record level of $2.887 trillion in 2025. This was 2.9 percent more than a year earlier and marked the eleventh consecutive year of growth. Europe recorded the highest growth rate, with spending increasing by 14 percent year on year in real terms.
“We are talking about Piorun missiles as our export product. Many countries are expressing interest in them. We are talking about Baobab and mines. Baobab, as a modern scattered mine-laying system that allows a very large area to be mined in a short time, is an extremely interesting solution. There are questions about Jelcz vehicles and Borsuk vehicles, and whether they are exportable products. Radars, the ‘monster from Tarnów’, weapons from Łucznik, PCO products, including night vision devices and soldier equipment — these are the elements with which we want to enter the market, and we also see export potential in them,” Leszkiewicz said.
Foreign partners are also showing growing interest in systems developed by Polish industry that have either been tested in combat conditions or respond to new threats, including drone warfare and the protection of critical infrastructure.
For several years, the European Union has been promoting the development of joint armament programmes and cross-border supply chains. These are intended to strengthen the competitiveness of European manufacturers against companies from the United States and Asia.
“Cooperation with our partners is a value in itself, but it also helps us develop and build new opportunities and sales potential in new markets. We have several examples, including the Rosomak with a Slovak turret, offered to Middle Eastern markets. We have also prepared our infantry fighting vehicle in a version with a Slovak turret. This vehicle will be presented in mid-May at a trade fair in Bratislava and in June at a trade fair in Paris. We want to take this product to markets such as the Middle East,” said the President of Polska Grupa Zbrojeniowa.
During the Defence24 Days conference, PGZ signed an agreement with the Ministry of State Assets concerning the construction of an AGT1500 engine service centre at Military Aviation Works No. 1 in Dęblin.
“There will be more such agreements. Despite the SAFE negotiations, we are still working on other matters,” Leszkiewicz said.
