PGZ is greedy for money from SAFE. Applications worth billions and more than half of the budget

In the original plans presented to the European Commission, PGZ submitted applications for more than half of Poland's EUR 43.7 billion amount under SAFE – PGZ Vice President Jan Grabowski told PAP Biznes on the sidelines of the BCC For The Future conference. He noted that it will be revealed only at the end of November which projects Poland will finally submit for financing.

Grabowski noted that EU countries interested in joining the SAFE instrument (a total of EUR 150 billion) were to submit appropriate applications by the end of July.

“Poland submitted such an application by the end of July – the application included investment and modernization projects and the Commission accepted these applications for the amount of EUR 43.7 billion,” said the vice-president of the Polish Armaments Group.

According to the schedule on the EC website, countries wishing to benefit from EUR 150 billion of preferential loans under SAFE are to submit national defense investment plans by November 30. In the next step, by January 2026, the EU Council is to adopt decisions implementing SAFE, and by February loan agreements for these investments are to be negotiated and pre-financing is to be launched.

“Today, by November 30, the European Commission expects that all countries that want to join SAFE will submit their investment projects (…). Polska Grupa Zbrojeniowa will contribute to the contribution that the government will submit to the European Commission,” he added.

He noted that the Ministry of National Defense is currently responsible for SAFE in the government.

When asked how much the projects of the Polish Armaments Group were worth under the EUR 43.7 billion from SAFE, he replied that in accordance with the original plans – more than half.

“For our projects in the original plans, which were submitted by the end of July, we have submitted applications for well over half of this amount. However, I do not know what the final projects will be, which the Polish government will want to submit by November 30,” he noted.

When asked about the projects submitted by PGZ, he emphasized that the SAFE instrument is something new and that it is not only financing the purchase of weapons, but also possible investments in infrastructure and production capacity.

“SAFE is also international cooperation, so it is not just a purchase for Poland,” he noted.

He added that one of the ideas under SAFE is support for Ukraine.

“But in order for us to support Ukraine as the Republic of Poland, we need to change the law: the Homeland Defense Act, or establish a new fund under the Minister of Finance, under Bank Gospodarstwa Krajowego, which will concentrate these SAFE funds,” Grabowski said.

Grabowski explained earlier on the panel that the current Armed Forces Support Fund (FWSZ) operating under the Homeland Defense Act is intended only for the Polish armed forces, and that the act would have to be changed to be able to implement international projects on its basis in accordance with the SAFE purpose.

The Armed Forces Support Fund (FWSZ) operates on the basis of the Act of March 11, 2022 on the defense of the homeland. The Fund provides financing or co-financing of tasks resulting from the Armed Forces development program established by the Minister of National Defense. (PAP Business)

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