On Tuesday, September 9, the European Commission announced its preliminary allocation of funds under the SAFE loan mechanism. Poland, which applied for the largest support package for defense projects, will receive the biggest share — €43.7 billion. In total, 19 countries will participate in the program, with demand exceeding the SAFE budget of €150 billion. National investment plans must be submitted to the European Commission by the end of November, with the first disbursements expected around the turn of the year.
“Poland is beneficiary number one — €43.7 billion out of the €150 billion pool will go to Poland, nearly one-third of the total. This will both strengthen the Polish army and support investment in Poland’s defense industry. It is excellent news and truly groundbreaking, as this is the first major defense program guaranteed by the EU budget,” said Piotr Serafin, EU Commissioner for Budget, during a briefing at the European Parliament. “But this is not the EU’s final word — in the new multiannual budget proposal, we also recommend a radical increase in defense spending, from €24 billion now to nearly €150 billion.”
According to Serafin, interest from member states was very high, with 19 expressing willingness to participate. “The fact that demand exceeded available resources is a positive signal from all over Europe: security is our shared responsibility. I am particularly pleased that this program will be concentrated on countries bordering Russia, Belarus, and Ukraine. Poland will be the largest beneficiary, but Romania will also be among the top recipients,” he added.
Romania will receive over €16.6 billion, France €16.2 billion, and Italy €14.9 billion. The Baltic states are also included (Latvia €5.6 billion, Lithuania €6.3 billion, Estonia €2.6 billion), as well as southern countries such as Cyprus and Spain. “Proportionally, the Baltics are getting a significant amount, which is a very positive signal. After a week of debate about reduced U.S. support for Baltic defense, the message from Strasbourg and the European Commission is that the EU will support their defense capabilities,” Serafin noted.
By November 30, member states must submit their national defense investment plans, which will then be reviewed by the Commission. “I expect my role will come into play at the turn of the year, when advance payments will be transferred to member state accounts,” Serafin said.
The SAFE program will provide long-term loans to help member states procure urgently needed defense equipment. It also aims to support Ukraine by including its defense industry in the mechanism. SAFE loans feature a 10-year grace period, competitive interest rates, and options for bilateral agreements with third countries to expand eligibility.
“These are cheap loans, particularly attractive for non-eurozone countries like Poland. I won’t give estimates of savings compared to issuing sovereign bonds, but we are talking about several billion euros, possibly much more. This is a product not available on the market to any EU country, not just Poland,” Serafin emphasized.
According to MEP Michał Szczerba (Civic Platform), the program could be a major boost for Polish defense manufacturers. “This program will give growth opportunities to strategic Polish defense firms, especially PGZ. We have excellent products like Piorun missile systems and Borsuk IFVs, which are in demand. SAFE will allow us to expand production capacity for such equipment. We want the ‘Eastern Shield’ project to be a flagship initiative under the new financial perspective, but we can also use SAFE funds for it right now. Air defense and anti-drone systems — including strong private production in Gdynia — are also priority areas. SAFE is a chance for state-owned and private defense industries, as well as for developing public-private partnerships,” Szczerba said.
However, PiS MEP Bogdan Rzońca, a member of the European Parliament’s Budget Committee, raised concerns. “Yes, €180 billion is an impressive sum, but it is still debt that Poland must repay. What matters most is how the funds are used — will they really go to equip the Polish army and support Polish defense manufacturers with new technologies, licenses, and production lines? Or will they be spent elsewhere? There are suspicions that, since Germany is not applying for SAFE funds at all, Poland could end up using this money to purchase German equipment. That would be unacceptable. Politicians and the media must closely monitor how these funds are spent,” he warned.
Rzońca stressed that the funds should be invested directly in production facilities like PGZ. “We won’t defend ourselves with strategies or reports — we need hardware: aircraft, tanks, equipment that will make Poland safe. There should be binding rules that, regardless of who is in power, the money is spent on modern, effective equipment. As for channeling any of these funds to Ukraine — I believe the priority should remain on Polish defense companies, the Polish army, and Poland’s security,” he concluded.
