Poland has applied for financing for 139 defence projects worth a total of EUR 43.7 billion.
The EU also gave the green light to SAFE plans submitted by Estonia, Greece, Italy, Latvia, Lithuania, Slovakia and Finland, Poland’s PAP news agency reported.
The Security Action for Europe (SAFE) programme provides up to EUR 150 billion in low-interest loans for military procurement, largely focused on equipment produced in Europe.
The EU approved the plans of the first eight participating countries—Belgium, Bulgaria, Cyprus, Denmark, Spain, Croatia, Portugal and Romania—on February 11.
In total, 19 EU countries have applied to participate in SAFE. Hungary, France and the Czech Republic are still awaiting approval.
In Poland, parliament is advancing legislation to enable the government to access SAFE funds.
The lower house of parliament passed the bill on Friday despite opposition from the conservative Law and Justice (PiS) party, which has raised concerns about transparency and potential political conditions attached to the financing.
PiS leader Jarosław Kaczyński on Monday urged President Karol Nawrocki to veto the bill, saying the programme has “powerful political implications” and could serve to consolidate Europe "under German leadership."
Asked on Sunday whether he would sign the legislation, Nawrocki said the bill would still be reviewed by the Senate, the upper house, and that "some concerns remained" following discussions at a recent National Security Council meeting.
He said the loans, which would be repaid by 2070, present "a significant opportunity" but cautioned against "excessive optimism."
Finance Minister Andrzej Domański defended the programme on Monday, saying there is no “more effective and cheaper source of financing” for modernising Poland’s armed forces.
He said SAFE loans carry "very low interest rates" and are "significantly cheaper" than issuing Treasury bonds.
SAFE was established last year to help EU countries strengthen their defence capabilities amid growing concerns over Russia and uncertainty about future US engagement in Europe.
The programme also aims to reduce reliance on US-made weapons and bolster Europe’s defence industry.
Under the rules, at least 65 percent of the value of components must be produced in participating countries, limiting purchases from non-EU suppliers.
Ukraine is also eligible to participate in the loan programme, a move intended to strengthen its defence industry and support its fight against Russia.
Fifteen of the 19 participating countries, including Poland, say they intend to carry out joint defence projects with Ukraine.
The programme is open to non-EU countries such as Norway and Switzerland, as well as nations that sign defence partnership agreements with the EU, including Britain and Canada.
Prime Minister Donald Tusk has said the SAFE initiative is crucial for Poland's security and could provide nearly EUR 44 billion for defence infrastructure and equipment.
He has also said the funding could support aerospace projects, artificial intelligence applications for defence, cybersecurity and the "Safe Baltic" programme.
(gs)
Source: IAR, PAP