President Karol Nawrocki decided to veto the SAFE Act – preferential EU loans for armaments in the amount of approximately PLN 180 billion. The case arouses emotions, and our interlocutors admit that the dispute concerns a key issue for the Polish economy.
The rest of the article below the video:
Zbigniew Jakubas: I'm terrified
— I am terrified that with such serious external threats – especially in the East, in the context of Ukraine – the logic of mutual fighting between two camps still dominates in Poland. Instead of rational conversation, we have had the instinct to spite each other for years. Our national zealotry is reminiscent of the liberum veto that once led the country to paralysis. Each side is right about something, but there is no will to discuss it together and reach a compromise, emphasizes Zbigniew Jakubas, one of the richest Poles and the owner of the Multico Capital Group, in an interview with Business Insider.
Zbigniew Jakubas
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Wojciech Olkusnik/East News / East News
— I advise against easy access to NBP reserves. If we “open the safe” once, there will be a temptation to do it again – today for reinforcements, tomorrow for care or other current needs. This is a direct path to inflationary pressure and weakening the zloty. Reserves are used extremely rarely and in exceptional circumstances, says Zbigniew Jakubas.
On the other hand, it talks about the risks of long-term debt. — If we are talking about external financing, remember that debt for 30-45 years is relatively not expensive, because money loses value over time. However, this does not free us from thinking: perhaps we should reach for only some of the tranches and mix in other sources – for example domestic bonds. There is no such thing as 'free money'; every cost is revealed somewhere, he adds.
The idea of bonds for citizens and companies
And he emphasizes that it is worth considering another idea that could reconcile both sides. — Instead of reaching for short-term solutions, I would consider national arms bonds in euros – with a coupon of around 3 percent. and tax exemption. Thanks to this, the money would stay in the pockets of citizens and companies, and the state would obtain stable long-term financing. These securities could be listed on the market, providing liquidity and transparency, he says.
And this would also have social benefits. — Poles – households and companies – today keep over PLN 2.5 trillion in savings, largely on bank deposits. I talk to entrepreneurs running large businesses: many would have no hesitation in redirecting some funds to long-term defense bondsif conditions were fair and stable. The key is to make the capital really work for us, says Zbigniew Jakubas.
13th richest Pole on the Forbes magazine list emphasizes that we must continue armaments, but we should focus more on national potential. – We have to arm ourselves – that's indisputable. But the goal should be to retain resources and competences in Poland as much as possible. Over the last decade, we have often been stuffing the armaments of large overseas corporations. Meanwhile, we are able to build advantages: the example of WB Electronics shows that it is possible to become a European leader in drones – it took 15 years of consistent work – says the businessman.
Others also talk about the importance of focusing on domestic orders. — As a component manufacturer, we would not participate directly in deliveries under the SAFE program, but its implementation could indirectly translate into an increase in the number of orders resulting from increased demand from our customers in the defense industry, says Adam Piotrowski, president of Vigo Photonics, a Polish semiconductor company.
His company was not directly involved in SAFE projects, but it supplies infrared detectors, which are part of the protection systems for Polish vehicles and missile technology.
Critical programs for the military
Even representatives of industries not directly related to the defense industry admit that SAFE is extremely important for the entire Polish business. — We are looking at the current situation with the SAFE program and waiting for the government's final decision. Personally, I think so defense investment financing programs are critical because as a country we must not only acquire new solutionsbut also to develop the potential of Polish industry, both state-owned and private companies – says Andrzej Dopierała, vice-president of Asseco Poland.
Andrzej Dopierała
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Asseco
— Modern weapons include not only military equipment, tanks and missiles, but also software that manages systems, analyzes data and supports decision-making – reminds.
He points out that regardless of the method of obtaining funds, it is crucial to support Polish companies. — It is worth ensuring that as much of the software used by the army as possible is created in Poland and remains under the control of our armed forces. This approach not only increases the country's resilience to geopolitical challenges, but also provides an opportunity to develop Polish technological products that – just like solutions from companies from Western Europe or North America — can later be offered on international markets, says Dopierała.
Keep the gold, issue the loans
Dariusz Blocher, former president of construction companies Budimex and Unibep confirms how important it is to spend money on armaments today. However, he himself is in favor of using a SAFE loan.
Dariusz Blocher
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Jacek Dominski/REPORTER / East News
— We urgently need investment in military equipment and infrastructure. No matter where the funds come from, if we have these two programs on the table to finance these investments, I always believe that savings and cash reserves (in this case our gold) should be kept, he says.
In his opinion, concerns about the EU debt are groundless. — It is better to take a low-interest loan because we are still part of the European Union and we should not be afraid of it, but change it for the better, he adds.
— I would like Poland to continue to be part of the EU, because it is clear that nowadays European countries cannot cope on their own neither economically nor militarily with world powers – says Dariusz Blocher.
However, it does not completely eliminate the idea of President Karol Nawrocki and the National Bank of Poland. — If we can make a profit on the sale of gold and generate cash, let's do it, but let's leave these funds for the so-called black hour. Let's use SAFE funds, because we can always repay them ahead of schedule from the generated profitsif for some reason we want to do it, he concludes.
Grzegorz Kowalczyk, journalist of Business Insider Polska
