Following a long domestic political dispute, Poland has signed an agreement on the disbursement of a multibillion-euro EU defence loan.
Defence Minister Władysław Kosiniak-Kamysz and Finance Minister Andrzej Domański put their signatures to the document on Friday. It provides for the disbursement of just under €44 billion ($52 billion) to modernize the Polish army.
“This is a turning point in the history of Poland and the EU,” said Prime Minister Donald Tusk in Warsaw, adding that it would make Poland safer in these difficult and risky times.
Andrius Kubilius, the EU commissioner responsible for defence, emphasized that Poland was taking a leading role in shouldering responsibility for the defence of its own country, the eastern flank and the whole of Europe.
Under the Security Action for Europe (SAFE) programme, the European Union is making a total of €150 billion in low-interest loans available to expand its members’ defence capabilities. Poland is by far the biggest beneficiary.
Poland, an EU and NATO member state, is one of the most important political and military supporters of Ukraine, which is under attack from Russia. It also sees itself as threatened by Moscow and is massively rearming. Within the EU, Poland’s centre-left government had therefore strongly advocated for the launch of the SAFE programme.
But then a fierce internal Polish dispute erupted over the loan. After parliament passed a law in March authorizing the use of the funds, the eurosceptic President Karol Nawrocki vetoed it.
In the end, the government passed a resolution authorizing the ministers of defence and finance to sign the contracts for the SAFE programme. The EU loans are now being taken out indirectly through the state-owned development bank BGK.