WARSAW

EU ambassadors on Tuesday approved Polish defense projects for financing under the bloc’s SAFE defense program. This paves the way for formal approval by EU finance ministers next week in Brussels.

The European Commission granted preliminary approval for the projects two weeks ago. Following completion of all procedural steps, Poland will sign a loan agreement, expected in March. Under the agreement, Poland is set to receive an advance payment of approximately €6.3 billion ($7.5 billion) – 15% of the total amount – by the end of March or early April.

The Security Action for Europe (SAFE) program is the first time the EU has committed to large-scale arms financing at the EU level. The initiative is intended to support the modernization of European armed forces, strengthen defense industries, and enhance border and internal security across the bloc.

Poland has submitted 139 defense projects for funding under the program. It is expected to receive around €44 billion, primarily in the form of low-interest loans. The overall SAFE fund amounts to €150 billion. According to the Polish government, the loans will carry an interest rate of about 3% and will be repayable up to 2070.

The projects include the East Shield border security initiative, the development of unmanned aerial vehicles, anti-drone systems, large-caliber ammunition production, anti-aircraft missile systems, and howitzers. Funding will also support cybersecurity initiatives and the protection of critical infrastructure.

Polish authorities have estimated that over 80% of the funds invested through the program will remain in Poland, contributing to the development of the domestic defense industry. Warsaw also negotiated the ability to finance investments already begun during the first year of the program, despite the requirement that SAFE-funded projects be implemented by at least two participating countries.