Poland Has Received The EU's Largest Defense Loan

The funds will be used to modernize the army, air defense and purchase equipment.

Poland has become the first country to sign a loan agreement with the European Commission to finance the modernization of its armed forces and military industry worth 43.7 billion euros, the Le Monde newspaper reported.

"This is a turning point in the history of both Poland and the European Union. Poland will be safer in these difficult and risky times," Polish Prime Minister Donald Tusk said at the signing ceremony.

Tusk stressed that the EU has changed significantly, significantly increasing defense funding, and that SAFE is a "Polish invention."

"Although the mood here today is good, I have no doubt that it is much worse in Moscow. This is a day when Europe shows that it has learned the lessons of history and is ready to take much more responsibility for our security," Tusk said, adding later that Poland would make Europe safer.

The agreement was signed by Poland's finance and defense ministers, as well as European Budget Commissioner Peter Serafin and Defense Commissioner Andrius Kubilius.

How the funds are planned to be spent

According to Rzeczpospolita, citing Deputy Prime Minister and Defense Minister Wladyslaw Kosiniak-Kamysz, the agreement will "strengthen the army and border security" and allow for the creation of an "innovative defense industry."

The funds are planned to be disbursed by the end of 2030. It is added that the Arms Agency plans to award a number of contracts under the program by the end of May. In total, the loans will be used for more than 120 defense-related projects.

"The first advance payments, exceeding 6 billion euros, should arrive in May. By the end of May, we should sign about 40 new agreements on arms procurement and about a dozen more agreements on refinancing existing ones. As for the new contracts, we will buy, among other things, about 150 Borsuk infantry fighting vehicles, several dozen Krab howitzers and Rosomak wheeled armored personnel carriers," the article said.

According to government statements, more than 80 percent of the loan funds will go to the Polish defense industry. But a significant part of the funds will be allocated to components that are purchased from foreign suppliers. A smaller part of these funds will be allocated to purchases within the European defense industry, such as the Airbus-made MRTT refueling aircraft, which Poland intends to purchase jointly with Spain.

Defense of Europe

Of all the countries in NATO's eastern wing, Poland allocates the largest amount of funds to defense in relative terms - 4.8 percent of gross domestic product. Poland's army will also be financed by the European Union - through the SAFE program created in 2025. It provides 150 billion euros in soft loans to finance joint defense projects, the purchase of weapons or ammunition, and the development of critical infrastructure.

Poland is the main beneficiary of this program among European countries, seeking to counter the Russian threat amid risks associated with the U.S. military drawdown in Europe. Lithuania is due to sign a similar arms agreement on Saturday.

You can support the website Charter97.org

MULTI-CURRENCY ACCOUNT FOR ASSISTANCE:

Bank's name: Bank Millennium S.A.
Address: ul. Stanislawa Zaryna, 2A, 02-593, Warszawa
IBAN: PL97116022020000000216711123
SWIFT: BIGBPLPW
Name of the account holder: Fundacja “KARTA ‘97”
Purpose/title of payment: Donation for statuary aims

You can contact us by the e-mail charter97@gmail.com