Poland First in EU to Sign SAFE Rearmament Loan Deal

Poland became the first EU member to sign a loan agreement under the EU SAFE rearmament program, potentially unlocking up to €43.7 billion for defense spending. The funds will support military modernization and purchases from European defense firms as part of broader EU efforts to strengthen security amid rising tensions with Russia. Make us preferred on Google Flip Share Facebook X (Twitter) LinkedIn Bluesky Email Copy Copied A Polish soldier carries an interception drone of the American MEROPS counter drone system during tests at the Nowa Deba military training ground, south-eastern Poland, on Nov. 18, 2025. (Photo by Wojtek RADWANSKI / AFP) Content Share Facebook X (Twitter) LinkedIn Bluesky Email Copy Copied Flip Make us preferred on Google Poland became the first European Union country to sign a loan agreement under the SAFE rearmament program, securing potential access to up to €43.7 billion ($49 billion) in low-interest defense financing. According to Polish state news agency PAP , the agreement was signed in Warsaw on Friday, May 8, by Polish ministers and European Commission officials. Follow our coverage of the war on the @Kyivpost_official . Prime Minister Donald Tusk called the deal “a breakthrough moment” for both Poland and the European Union. SAFE is a €150 billion ($170.4 billion) EU defense financing initiative aimed at rapidly strengthening European military capabilities through low-interest loans. The program supports joint procurement, military modernization, cybersecurity, infrastructure, and weapons production, with a focus on European manufacturers and Ukraine’s defense industry. Member states can apply for funding through national plans that generally require joint procurement with at least one other participating country, although temporary exceptions allow individual purchases due to urgent security needs. The program covers ammunition, artillery, drones, missile defense, AI, naval systems, and other military technologies. Under the rules, at least 65% of components must originate from the EU, associated European countries, or Ukraine in an effort to reduce dependence on outside suppliers. SAFE is part of the EU’s broader ReArm Europe and Readiness 2030 strategy, which aims to mobilize more than €800 billion ($907 billion) in defense investment. Poland is expected to use most of the funding to modernize its armed forces. Other Topics of Interest Putin Ready for Talks With Europe but Won’t Make the First Move, Kremlin Says Kremlin spokesperson Dmitry Peskov claimed the Russian leader is prepared for talks with European countries but expects Brussels and European capitals to take the first step toward restoring dialogue. The messaging comes as Russia faces battlefield setbacks compounded by a dire economy at home. Dispute over SAFE participation The agreement was signed despite earlier opposition from President Karol Nawrocki, who vetoed legislation related to Poland’s participation in the SAFE program and proposed his own initiative instead. The government later found a workaround allowing Poland to join the mechanism. However, the loan funds can only be used for military structures and cannot be allocated to related agencies such as the Border Guard or other internal security services. Kyiv Post is Ukraine’s first and oldest English news organization since 1995. Its international market reach of 97% outside of Ukraine makes it truly Ukraine’s Global – and most reliable – Voice.