Of the nearly PLN 200 billion that Poland may soon receive from the EU’s SAFE loan programme, 80% will go toward expanding the country’s defence capabilities and boosting the production potential of the domestic defence industry. The funds will be available to both state-owned and private entities. Experts emphasize that the EU requirement to carry out joint defence procurement will help strengthen the international position of Polish companies—and create an opportunity to reinforce national supply chains as well.
“SAFE is a European Commission proposal, negotiated during Poland’s EU presidency, which has now entered into force. It provides €150 billion in loan support for member states that want to invest in their defence. Nineteen countries have applied, including Poland, which could be the biggest beneficiary because it requested €43.7 billion from the programme,” Dr. Katarzyna Smyk, Director of the European Commission Representation in Poland, told the Newseria news agency.
At the end of January 2026, the European Commission approved the second wave of member-state applications for SAFE funding, including Poland’s request. For the loan agreement with the Commission to be signed, new legislation is needed to create a framework for obtaining, managing and spending the funds. Last week, Poland’s Sejm adopted a draft law establishing the SAFE Financial Instrument for Increasing Security (FIZB). Once the legislative process is completed, the final outcome will depend on the President’s decision.
Defence products eligible for SAFE financing have been divided into two categories. The first includes, among others, ammunition and missiles, artillery systems, soldier equipment, small drones and drone systems, cyber solutions, and military mobility. The second category covers, for example, air and missile defence systems, surface and underwater naval capabilities, drones other than small ones and related systems, and strategic airlift.
“The access rules and objectives are set out in a regulation negotiated by the member states. They decided what they want to spend the funds on,” Dr. Smyk explains.
SAFE also provides for EU cooperation with third countries—primarily Ukraine and EEA/EFTA members—which may apply to participate in joint procurement. The programme’s rules state that no more than 35% of components in either category of defence products may come from outside the EU, the European Economic Area (EEA), the European Free Trade Association (EFTA) or Ukraine.
“A very important priority was to include Ukraine, so that we can benefit from the experience and capabilities Ukraine has developed during the war and, in this way, strengthen the EU defence system. It was also important for us that a significant share of these funds stays in Europe, because we must strengthen and build our defence industry. These are also jobs—so one of the criteria set was that 65% of the purchased weapons or equipment should be manufactured in Europe,” says the head of the European Commission Representation in Poland.
Importantly, joint public procurement may also include countries that have signed Security and Defence Partnerships with the EU. This includes, among others, Canada, Japan, the United Kingdom, Albania, Norway and South Korea.
“It was also important to encourage member states to buy jointly, because we need to ensure military systems can work together. And it worked: most of the applications submitted by member states—more than 700 of them—concern joint procurement,” Dr. Smyk adds.
As Władysław Kosiniak-Kamysz, Deputy Prime Minister and Minister of National Defence, stressed during a February conference organised by Portal Obronny, it is rarely said out loud that incentives for joint procurement also mean that other SAFE beneficiaries will be able to place orders with Polish industrial plants.
“SAFE money is also funding for other European states, which will also be buying in Europe—and that includes Poland, for example equipment such as Piorun missiles, Wizjer systems, Borsuk vehicles, Baobab mine-laying vehicles. SAFE therefore has two meanings: increasing defence potential and increasing the potential of the Polish defence industry. Poland needs both, because in both areas we need investment and equipment compatible with European and American systems,” the defence minister said.
“What does SAFE mean for the Polish defence industry? It’s almost PLN 200 billion, most of which will be spent in Poland’s defence industry and is meant to stimulate production through orders and to expand our manufacturing capacity. Poland will receive one third of the entire programme’s funds, and on top of that, most of it will be channelled into our defence industry. This is a direct injection of stable orders and cash that is supposed to develop our defence industry,” says Konrad Gołota, Deputy Minister of State Assets.
WB Group has already signalled its readiness to participate in the programme.
“I hope that our participation in financing through SAFE will strengthen our position in Europe, but also confirm our leading position—at least in the unmanned systems segment,” says Marcin Kubica, Managing Director of WB Group. “Our cooperation with European partners is satisfactory today. I hope it will only grow thanks to the cooperation we will develop under this mechanism. Importantly, the mechanism forces applicant countries to carry out joint procurement—this is entirely new in the EU and has not been used before.”
As he notes, a growing number of orders is also an opportunity to deepen cooperation with component suppliers.
“Our component suppliers include more than 50,000 entities. Thanks to these programmes, the number of companies involved in delivering systems together with us will also increase,” Kubica assesses.
According to WB Group’s report for the first half of 2025—covering activities such as advanced unmanned systems, communications and cybersecurity—its sales revenue exceeded PLN 1.1 billion, up 28% year on year. Exports accounted for 38% of consolidated revenue. The group focuses on its traditional markets, including Central and Eastern Europe, North Africa and Southeast Asia, while also expanding into new regions: South America, Central Africa and Central Asia. WB Group’s strategy assumes exports will ultimately generate half of its revenues. Systems intended for export include solutions also used domestically, such as FONET, TOPAZ, FlyEye, Warmate and FT-5, which have helped the group win numerous contracts.
“In my view, SAFE creates a chance to reflect on building systemic solutions that would help industry ensure stable supplies compliant with eligibility criteria. The 2030 horizon suggests it is worth considering, for example, building stocks of critical European-origin components for production—stocks that both we and our European partners would draw on. There are legal instruments for this. In Poland, they are provided by the Homeland Defence Act,” says the WB Group executive. “At the EU level, it is also worth considering this element, and industry will certainly respond positively—indicating which components are the most critical and should be secured in this way within existing strategic reserve warehouses or industry stockpiles.”
