Tadeusz Wróbel sits down with Magdalena Sobkowiak-Czarnecka, the Polish government’s plenipotentiary for the Security Action For Europe (SAFE) instrument, to talk about actions intended to strengthen the defense system and arms industry of European Union member states.

Security Action For Europe (SAFE), an instrument designed to increase security in Europe, will enable the EU states to relatively quickly fill at least some of the gaps in their security systems. It is also expected to contribute to increased orders in the European arms industry. The mechanism created by the European Commission is based on granting low-interest, long-term loans. Poland has been allocated 43.7 billion euros, the largest amount among all the states involved. What do we want to spend this money on?

Most of the funds from SAFE, over 90%, will be used to execute 87 programs prepared by the Ministry of National Defense, accelerating the technical modernization of the Polish Armed Forces. Funds will also be allocated to the services of the Ministry of the Interior and Administration – the Police, the Border Guard, and the State Protection Service (SOP), as well as projects involving dual-use infrastructure. In both cases, the allocated funds amount to several billion euros. A major beneficiary of the EU instrument will be the Polish arms industry, which will receive new multi-billion orders.

In what way will the SAFE projects be financed?

After signing the loan agreement with the European Commission, we will receive an advance payment – 15% of the 43.7 billion euros, and the next tranche will be transferred in October 2026. In the following years, the transfers will be made twice a year, in April and October. Each of these tranches should be treated as a new loan, and their amount will depend on the stages of implementation of individual projects, as we will have to submit relevant progress reports to the European Commission.

For the first ten years we only pay interest, and we have 45 years to pay off the entire loan. What costs must be taken into consideration?

I should first clarify that we will pay interest on the money we actually receive, not on the total amount allocated to us. The interest rate on SAFE loans will be slightly over 3%, which is significantly less than the interest rates on loans for arms purchases in the US or South Korea. If any of the programs is not fully implemented at a given moment, we will receive money for the part that has been completed. Moreover, we do not have to spread the repayment of all the received loans over 45 years – we can pay them off earlier. That said, any country, Poland included, can withdraw from SAFE at any time if it finds a more favorable financing option. The Ministry of Finance already estimates our profits from using SAFE, rather than other methods of financing the modernization, at over 40 billion zlotys.

Countries such as Germany or Sweden will not be using the loans from the EU. Why have their governments decided not to take advantage of this instrument?

Germany, Sweden, the Netherlands are all countries with high credit ratings which can take out loans on their own on even more favorable terms than those offered by the EU. However, the countries of the eastern flank, but also Belgium, France, Greece, Spain, Portugal, and Italy, have applied for SAFE financing. In total, as many as 19 countries have submitted such applications.

Magdalena Sobkowiak-Czarnecka, the Polish government’s plenipotentiary for the Security Action For Europe (SAFE) instrument.

Both the supplier and the product must meet specific criteria for the project to be eligible for funding. First and foremost, the company has to operate in the EU, and a majority of the components of the final product must be sourced from EU member states, Ukraine, and countries belonging to the European Free Trade Association (EFTA) and the European Economic Area (EEA), such as Norway and Switzerland. Won’t these rules have a negative impact on the purchases of armaments and military equipment from non-European suppliers?

SAFE does not mean giving up on purchasing armaments outside Europe, as it will create a new, third line of financing defense-related transactions. Purchases in non-EU countries will still be possible using funds from the state budget and the Armed Forces Support Fund. At the same time, it should be kept in mind that a large part of the money in the budget of the Ministry of National Defense, earmarked for purchases, is spent on servicing loans that have been used to finance already concluded contracts, which in turn limits the amount of budget funds available for new projects. By financing purchases made in Poland and other European countries, the SAFE instrument will allow us to use funds from the ministry’s budget and the Armed Forces Support Fund to finance armament orders from other suppliers. This is why SAFE is a key tool that will help accelerate the modernization of the Polish Armed Forces. It should also be noted that as a result of our efforts, products purchased under SAFE may contain up to 35% of components from non-European companies. Some EU countries were in favor of more restrictive limits.

Aren’t the projects carried out independently by Poland at risk, given that agreements with contractors must be signed by the end of May?

The fact is that some of them have already been signed, as we can use SAFE loans to finance agreements for new equipment concluded from the end of May 2025. One such example is the program concerning the San anti-drone system.

Our application included 139 projects. Were ten of them rejected by the European Commission?

No, only two projects for the State Protection Service were removed from the program in this way. The main reason behind the reduction in the number of projects is that we had submitted them as separate ones, and later some of them were merged. The EC accepted our defense projects without any changes.

What do you consider to be Poland’s greatest success in the negotiations on SAFE with the European Commission?
Most importantly, the very fact that the first European defense program on such a massive scale was successfully launched. Secondly, that the European Union is getting involved in the sphere of defense, which it did not usually engage in. This is an achievement of the Polish Presidency. Our efforts within the EU are effective.

How did you create the list of programs intended for the military?

No one imposed on us what to order and from whom. The needs of the army have been determined by the General Staff of the Polish Armed Forces. Importantly, we managed to negotiate with the European Commission that most Polish purchases will be made independently from domestic manufacturers, which means that up to 89% of SAFE funds will go to them.

If there are problems with implementing a project, or a new, more urgent need to purchase a weapons system arises, is it possible to substitute projects submitted to SAFE?

We did emphasize this option in our negotiations with the European Commission. Although 2030 seems close, technological development is rapid, and the military may find it necessary to acquire particular systems. After all, before the outbreak of a full-scale war in Ukraine, we did not fully realize how important the role of drones would be on the battlefield. Indicating new projects would not be difficult, as there is a reserve list – the needs of the armed forces are vast. However, there is one important limitation: as of May 2026, they must be joint projects, i.e., executed by at least two countries.

Who will execute the domestic SAFE projects?

The Polish Armaments Group (PGZ) will be the key contractor, but large private companies such as the WB Group will also play an important role. Also, PGZ companies have had numerous private partners for a long time. Through SAFE, we will improve the situation of the domestic arms industry, both state-owned and private, and thus strengthen our sovereignty. We estimate that around 12,000 businesses will benefit from SAFE.

What companies have been recognized as Polish?

The Armament Agency has evaluated companies on the basis of whether their products are manufactured in Poland.

What else can our companies gain from SAFE apart from domestic contracts?

The EU instrument provides an impetus for the Polish arms industry to enter foreign markets on a larger scale, as weapons manufactured by our state-owned and private companies can be purchased by other countries using SAFE funds. It is also a good opportunity to establish new industrial partnerships.

Which countries may be interested in purchasing our weapons?

Countries such as Greece, Romania, but also the Nordic and Baltic states may become important partners. By the end of May, we will know who decides to place their orders with the Polish arms industry.

Representatives of the opposition fear that payments from SAFE may be blocked, as was the case with the National Recovery Plan (NRP). Is there such a risk?

In each case, the provisions that determine the reasons for suspending funding are different, so it is a mistake to look for analogies. SAFE funds may be blocked if there is suspicion of corruption. Meanwhile, the National Recovery Plan included a condition of compliance with the rule of law.

What is the biggest challenge related to the implementation of SAFE?

It is certainly the strict deadline for project completion by the end of 2030. Although the European Commission has shown great flexibility in many respects, in this case there can be no concessions.

Is it possible that the European Union will implement a new mechanism to support defense after SAFE ends?

SAFE was created as a bridge between the current budgetary perspective and the new EU budget. Discussions are underway regarding SAFE 2, which would involve even closer cooperation between the defense industries of member states, but it is too soon to say whether it will be created. For now, everyone is waiting to take the first step, i.e., implement SAFE and see how it works in practice. If its execution goes well, the chances of a new initiative will increase.

Magdalena Sobkowiak-Czarnecka is the government’s plenipotentiary for SAFE (Security Action for Europe). In 2024–2025, she was Undersecretary of State for European Affairs at the Chancellery of the Prime Minister.