Poland First in EU to Sign SAFE Rearmament Loan Deal

Poland became the first European Union country to sign a loan agreement under the SAFE rearmament program, securing potential access to up to €43.7 billion ($49 billion) in low-interest defense financing.

According to Polish state news agency PAP, the agreement was signed in Warsaw on Friday, May 8, by Polish ministers and European Commission officials.

Prime Minister Donald Tusk called the deal “a breakthrough moment” for both Poland and the European Union.

What the SAFE program includes

SAFE is a €150 billion ($170.4 billion) EU defense financing initiative aimed at rapidly strengthening European military capabilities through low-interest loans. The program supports joint procurement, military modernization, cybersecurity, infrastructure, and weapons production, with a focus on European manufacturers and Ukraine’s defense industry.

Member states can apply for funding through national plans that generally require joint procurement with at least one other participating country, although temporary exceptions allow individual purchases due to urgent security needs.

The program covers ammunition, artillery, drones, missile defense, AI, naval systems, and other military technologies. Under the rules, at least 65% of components must originate from the EU, associated European countries, or Ukraine in an effort to reduce dependence on outside suppliers.

SAFE is part of the EU’s broader ReArm Europe and Readiness 2030 strategy, which aims to mobilize more than €800 billion ($907 billion) in defense investment. Poland is expected to use most of the funding to modernize its armed forces.

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Dispute over SAFE participation

The agreement was signed despite earlier opposition from President Karol Nawrocki, who vetoed legislation related to Poland’s participation in the SAFE program and proposed his own initiative instead.

The government later found a workaround allowing Poland to join the mechanism. However, the loan funds can only be used for military structures and cannot be allocated to related agencies such as the Border Guard or other internal security services.