Poland will sign SAFE agreements with the European Commission. Magdalena Sobkowiak reveals details
In total, the SAFE funds allocated to Poland amount to EUR 43.7 billion.
— If all goes well, on Friday in Poland two agreements on SAFE will be signed with the European Commission – a loan and an operational one – Magdalena Sobkowiak, the government's plenipotentiary for the Security Instrument for Europe (SAFE), tells Business Insider Polska.
The contract was originally expected to be signed at the beginning of April, but the preparation of the contracts was delayed.
On the Polish side, they will be signed by the Deputy Prime Minister, Minister of National Defense Władysław Kosiniak-Kamysz and the Minister of Finance and Economy Andrzej Domański, as well as two representatives of Bank Gospodarstwa Krajowego, and on the EC side – commissioners for defense Andrius Kubilius and for the budget Piotr Serafin.
The advance payment will reach Poland in May
As Sobkowiak explains, the loan agreement will, in principle, be the same for all countries, only the amount, the name of the country and whether there will be an advance payment or not will differ. In the case of Poland, it is 15%. advance.
— It will reach Poland within a few or a dozen or so days after signing the agreement. As far as we know, the Commission already has this amount secured – it had to borrow it on the markets. It comes into play EUR 6.5 billion, i.e. approximately PLN 20 billion, which will flow to Poland in May – announces.
In turn, the operational agreement, adds the government representative, is different for each country and is based on the Polish application.
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Magdalena Sobkowiak, government plenipotentiary for the Security Instrument for Europe (SAFE)
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Adam Chelstowski/FORUM / Forum Polish Photographers Agency
— Describes 129 applications for the purchase of products for the needs of our army along with deadlines. We also commit ourselves to: We will report on the implementation of the program twice a year. Twice a year – until October 2030 – we will also apply for further tranches of SAFE payments (they will be different and will depend on the stage of the projects) – explains Magdalena Sobkowiak.
In the following years, Warsaw will apply for money twice a year – in the April and October rounds.
This year we will submit the payment application once – in October. By the end of 2030, we must receive finished products purchased with money from SAFE.
— Everything is clarified, but the declaration of the Armament Agency is binding 89 percent goods purchased under the program will come from Polish industry. We have secured the money, including: for ammunition etc. – he assures.
As he points out, the program includes contracts concluded since May last year.
Map of potential beneficiaries of the SAFE program
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Chancellery of the Prime Minister / Chancellery of the Prime Minister
In a March conversation with Business Insider, Sobkowiak indicated that due to Karol Nawrocki's veto, the government was fighting “day and night” to save money from SAFE for the Police, Border Guard and infrastructure. The Ministry of Internal Affairs was to receive PLN 7.1 billion, and the Ministry of Infrastructure – PLN 10 billion from this program.
However, these treatments were unsuccessful. — When it comes to money for infrastructure and for uniformed services – the Border Guard and the Police – unfortunately, SAFE's participation is impossible. The president's veto effectively blocked this option. However, the government will find funds for these investments from other sources – the ministers of interior affairs and infrastructure will inform about it – says the government plenipotentiary.
Let us recall that on March 12, the president vetoed the SAFE Act. The veto concerned a tool that was to be used to spend money from this program in Poland.
On March 13, the government adopted a resolution on the Armed Poland Program, which authorizes the Minister of National Defense and the Minister of Finance and Economy to sign an agreement on SAFE with the European Commission. At the same time, the leading role in coordinating the implementation of tasks financed by the program was assigned to the Minister of Defense.
SAFE
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PAP/Michał Czernek / PAP/photos
In a March conversation with Business Insider Polska, Sobkowiak-Czarnecka also emphasized that “contrary to some reports in Poland – there will be no different interest rates on SAFE loans depending on the rating of a given country“.
— The money will go to the Armed Forces Support Fund, which will transfer it to the Armament Agency. It is this entity in the Polish system that conducts proceedings to finance armaments investments, Sobkowiak-Czarnecka explained at the time.
In accordance with the government's resolution, the loan from SAFE will be taken out by Bank Gospodarstwa Krajowego for the benefit of the Armed Forces Support Fund. Hence – in addition to Kosiniak-Kamysz and Domański – the agreement is also to be signed by representatives of BGK.
The first vice-president of BGK, Marta Postuła, explained in a March interview with Business Insider Polska that the Minister of National Defense is responsible for what and to what extent Poland buys from the fund. In turn, the Minister of Finance accepts the financial conditions and monitors the efficiency of activities, and BGK ensures the highest efficiency of spending funds.
— We finance the Armed Forces Support Fund from bonds, credits, loans or contributions from the Minister of National Defense – she described.
