Poland stands to benefit significantly from the European Union’s new defense loan program, which offers EUR 150 billion (USD 163 billion) in financing to strengthen the bloc’s military capabilities.
In an interview with Polish state news agency PAP, EU Budget Commissioner nominee Piotr Serafin emphasized Poland’s strong position within the initiative. He noted that the country is among the most advanced in the EU when it comes to defense investments, making it well-placed to capitalize on the program.
The European Commission introduced its latest defense strategy in a white paper unveiled on Wednesday. Initially outlined by Commission President Ursula von der Leyen, the strategy details plans to enhance Europe’s military preparedness.
Under the initiative, EU member states can access defense-related loans, with priority given to joint procurement projects involving at least two countries. However, Serafin pointed out that during the program’s first year, individual nations will also be eligible for funding, even without multinational partnerships.
This flexibility is expected to particularly benefit Poland, which already has established defense procurement plans that currently do not include collaborative purchases with other states.
“This approach provides time to cultivate a joint procurement culture, especially in the defense sector,” Serafin stated.
He also highlighted the financial advantage for Poland, noting that the EU’s loan terms are significantly more favorable than those available on the open market. The program offers an interest rate of 3.3 percent, with only interest payments required for the first decade—an attractive option for nations dependent on external funding for military projects.
While some EU countries may opt out due to their ability to secure cheaper financing elsewhere, Serafin believes Poland will find the program highly advantageous.
SAFE Program and Industrial Benefits
The loan initiative is part of the broader SAFE (Strengthening the European Defense Ecosystem) regulation, included in the European Commission’s white paper. Serafin played a key role in shaping the regulation, as the loans will be backed by the EU budget.
A central provision of SAFE mandates that at least 65 percent of the loan funds be spent on defense components sourced from within the EU. According to Serafin, this requirement is designed to bolster European industry and job creation.
“This mechanism ensures the participation of defense industries from all EU countries, including firms that collaborate with non-EU partners or incorporate foreign components and intellectual property,” he explained. “This expands procurement opportunities across the EU, which will also benefit Polish defense firms.”
Eastern Border Shield: A Strategic Priority
The white paper also underscores the importance of the Eastern Border Shield project—a key initiative aimed at fortifying the EU’s eastern frontier, which includes Poland and the Baltic states.
Serafin reaffirmed the European Commission’s commitment to strengthening this border, calling it a “shared European responsibility” given the security challenges posed by Russia and Belarus.
“There is no doubt within the European Commission that the border with Russia and Belarus is a shared European border,” he said.
The Eastern Border Shield project will receive support as part of the EU’s broader defense strategy, reinforcing Poland’s role in European security.