“EU chain” instead of security? The great dispute over SAFE

Poland must not be allowed to enter the SAFE program; it is a loan mechanism that will keep countries pursuing independent policies “on a chain”, said the head of the PiS club, Mariusz Błaszczak, on Saturday in Stalowa Wola. He also presented the party's program proposals regarding defense.


Under the slogan “Thinking Poland – Alternative 2.0: Time for a safe Poland” a Law and Justice program convention was organized in Stalowa Wola (Podkarpackie Voivodeship).
The head of the PiS club, former Minister of National Defense Mariusz Błaszczak, pointed out that difficult times require commitment and a tough attitude. As he said, if there is no sobering up, Poland will remain on the security periphery. In his opinion, the security of the state is being put to the test because of a “disastrous government”.
He assessed that the EU SAFE program is a loan mechanism that “will hold countries that dare to pursue independent policies like a chain.” – Poland must not be allowed to join this mechanism – said the PiS politician.
The act adopted on Thursday with amendments by the Senate, implementing the EU SAFE reinforcement program, assumes the creation of a Financial Instrument for Enhancing Security (FIZB) managed by Bank Gospodarstwa Krajowego, through which the government will be able to use money from SAFE. Under the EU instrument, the Polish government will be able to use approximately EUR 43.7 billion in loans with favorable interest rates and spend them on defense investments. According to the government's declaration, over 80 percent the money is to be spent in the Polish arms industry.
During the convention, Błaszczak also presented the most important PiS program proposals regarding defense. One of them concerns the defense budget. – Other tasks and tasks related to other ministries cannot be allowed to be financed from the budget of the Ministry of National Defense. The debt of the Polish state cannot be financed from the budget of the Ministry of National Defense either. We will guarantee such rules by law, declared the head of the PiS club.
He added that a bank tax should also be introduced so that a significant part of bank profits would flow to defense. PiS's demand is also the possibility of allocating 1.5 percent. PIT tax for the Polish army. – Then each of us would feel that we are participating in the process of building the strength of the Polish army. Of course, there would be no compulsion – said Błaszczak.
He pointed out that the next postulate is, among others, establishment of the Polish DARPA agency, modeled on the American Defense Advanced Research Projects Agency.
– We will introduce a basic standard of equipment for Polish Army soldiers – said the former head of the Ministry of National Defense.
He added that another proposal is to create a service ready to support the police, border guards and fire brigades, following the example of the military police. – We also wanted to relieve the Territorial Defense Forces, because they perform this function today. The role of a gendarmerie-type formation, such as the Carabinieri, is slightly different than the role played today by the Territorial Defense Forces, Błaszczak explained.
He also announced that if PiS takes power, it will immediately enter into negotiations with the US regarding Poland's participation in the nuclear sharing program.
The head of the PiS club also pointed to the need to create the headquarters of the Republic of Poland. – The idea is to create a headquarters resistant to attacks, to create a national command center, a Pentagon, a second Pentagon in Poland – said Błaszczak.
Blocking the SAFE program – anti-Polish action
Blocking the SAFE program by PiS politicians is an anti-Polish action, government spokesman Adam Szłapka told PAP. He estimated that billions of euros from the SAFE program for the development of Polish armaments potential are a gigantic opportunity for Polish security and economy.
PAP asked the government spokesman for a comment on the PiS politician's speech. In his opinion, Błaszczak's words are “obvious nonsense and a lie.”
– Mr. Błaszczak deliberately misinforms. The SAFE program still allows Poland to purchase equipment from our allies – for example the United States – that is difficult to produce, for example, in European countries. But the most important thing is that this program means huge funds: EUR 43.5 billion for the development of the Polish armaments potential, for the development of the Polish defense industry. This is a gigantic opportunity for our security, for our economy, for our defense industry, he said.
As he emphasized, blocking the SAFE program by PiS politicians “is an anti-Polish action.” He stressed that the words about “keeping on a chain” countries that dare to pursue independent policies are a “lie”. – Błaszczak knows that this is not the case, he is just trying to build anti-EU rhetoric – he said.
– PiS politicians are aware that the money from the SAFE program will work very quickly in the Polish economy and this will be felt. And they operate according to the principle: the worse for Poland, the better for PiS – said Szłapka.
Domański: The SAFE program means savings of up to PLN 60 billion
– The SAFE program is currently the cheapest and most effective source of financing for the modernization of the Polish army – said Minister of Finance Andrzej Domański, who arrived in Rzeszów on Saturday. According to the head of the ministry, this solution may bring Polish taxpayers from PLN 36 to even PLN 60 billion in savings compared to alternative financing methods.
The Minister of Finance emphasized that the SAFE program is based on multi-year loans with a very long repayment grace period. In his opinion, the state budget would not be able to obtain such significant funds. – We are talking about almost PLN 200 billion. The state budget would certainly not be able to raise such huge amounts in the next few years, Domański said.
According to the head of the Ministry of Finance, choosing the SAFE program means savings in debt servicing for the budget. The minister pointed out that compared to the costs of issuing standard treasury bonds, the profit for the state will amount to PLN 36 billion, while compared to the financing by Bank Gospodarstwa Krajowego (BGK) under the Armed Forces Support Fund, this amount increases to PLN 60 billion. – These are tens of billions of zlotys that will remain in taxpayers' pockets. There is no cheaper source of financing for the modernization of the Polish army, said Domański.
When asked about the issue of incurring liabilities in euro and the related exchange rate risk, the minister recalled that previous governments also financed arms purchases (including from the USA and South Korea) in foreign currencies.
The head of the Ministry of Finance assured that the SAFE program is consistent with the government's debt management strategy, which precisely defines the exchange rate risk control mechanisms. – Moreover, BGK also has its own tools to hedge currency risk – added the minister.
Protest against the implementation of the SAFE program
Opponents of the SAFE program gathered on Saturday in front of the Presidential Palace. During the demonstration, its chairman, Adam Borowski, appealed to President Karol Nawrocki to veto the bill implementing the program. On Thursday, the bill returned to the Sejm after amendments proposed by the Senate.
Protesters gathered in front of the president's office, where they appealed to the head of state to veto the law implementing the EU program. Those present at the demonstration demonstrated banners with slogans including: “No for SAFE. Yes for Poland.”
SAFE means PLN 3 billion for the police, but I will accept any money
– We are entering a new modernization program, which will amount to over PLN 7 billion. The SAFE program gives us additional opportunities, i.e. over PLN 3 billion, this is what we need – Inspector General of Police Marek Boroń said on TVN24 on Saturday.
He emphasized that he would accept any measures because “they build the police's resilience to the challenges that lie ahead.” As he noted, this money is needed to protect police officers against potential threats, e.g. the purchase of vests with ballistic inserts.
– We see what we are dealing with today; acts of sabotage, subversion. We are on the tracks, on the border. Every money for the police is well spent, we watch every zloty and invest it in what is important, Boroń emphasized. He pointed to investments in construction, ICT and armament of the formation, which – as he added – translates into the safety of citizens.
(PAP)




