Poland Signs 62 Defense Contracts Worth €28 Billion Under the EU's SAFE Loan Program
Warsaw signed the deals between May 28 and 30 to beat an EU deadline, with about 89% of the money going to domestic firms led by state group PGZ.
Warsaw signed the deals between May 28 and 30 to beat an EU deadline, with about 89% of the money going to domestic firms led by state group PGZ.
Poland signed 62 defense contracts worth roughly 120 billion zloty (about €28.3 billion) between May 28 and 30, the government's plenipotentiary for the program, Magdalena Sobkowiak-Czarnecka, said, state news agency PAP wrote. The signings beat a European Union deadline requiring purchases made by a single member state under the bloc's new defense-loan program to be concluded by May 30.
That program, Security Action for Europe (SAFE), is a €150 billion fund of low-interest loans the EU created to finance member-state rearmament through 2030. Poland is its largest beneficiary, with €43.7 billion allocated, and the first country to both sign contracts and draw funds. The European Commission said Poland received a first payment of €6.6 billion, 15% of its allocation, on May 29.
The government has said about 89% of the money will be spent in Poland. Polish Radio detailed that the largest share went to Huta Stalowa Wola, a subsidiary of state group PGZ, covering 146 Borsuk infantry fighting vehicles, 96 Krab 155mm self-propelled howitzers, 64 Rak mortars, and 1,000 ammunition and command vehicles for the Homar-K rocket-artillery system. A separate PGZ-led consortium took more than 13.5 billion zloty to produce several hundred thousand 155mm artillery shells, according to Defense News.
About 10.8 billion zloty went to unmanned systems, including WB Group's WARMATE loitering munitions, which reached Ukrainian frontline units in 2022, and its FlyEye reconnaissance drones. Poland donated Krab howitzers to Ukraine the same year. The SAFE contracts direct most of the spending to the domestic producers that have supplied Kyiv, paying for the expansion with EU loans rather than Poland's national budget.
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Subscribe Free →Poland's remaining SAFE purchases must now be made jointly with at least one other member state, the rule that applies after the May 30 single-country deadline. The government has submitted 139 projects to the program.
Frequently Asked Questions
What is the EU's SAFE program?
Security Action for Europe (SAFE) is a €150 billion fund of low-interest EU loans created to finance member-state rearmament through 2030, the European Commission says. Poland is its largest beneficiary, with €43.7 billion allocated.
How much did Poland commit, and over what period?
Poland signed 62 contracts worth about 120 billion zloty (roughly €28.3 billion) between May 28 and 30, the government's SAFE plenipotentiary said, as reported by state agency PAP. The pace met an EU rule requiring single-country purchases to be signed by May 30.
Which weapons and companies received the contracts?
Polish Radio reported the largest share went to Huta Stalowa Wola, a PGZ subsidiary, for 146 Borsuk infantry fighting vehicles, 96 Krab 155mm howitzers, 64 Rak mortars, and 1,000 support vehicles for the Homar-K rocket system. A separate PGZ-led consortium took more than 13.5 billion zloty for 155mm shells, according to Defense News.
How does the purchase connect to the war in Ukraine?
Several of the systems are already in use next door. WB Group's WARMATE loitering munitions reached Ukrainian frontline units in 2022, and Poland donated Krab howitzers to Ukraine that year. The contracts direct most of the spending to the domestic producers that have supplied Kyiv.
How much of the money stays in Polish industry?
The government has said about 89% of the funding will be spent in Poland, financed by EU loans rather than the national budget.
What happens to Poland's SAFE spending after the May 30 deadline?
Purchases made after the deadline must be carried out jointly with at least one other member state. Poland has submitted 139 projects to the program.
AI-generated summary, reviewed by an editor. More on our AI guidelines.
Marcus Schuler
Marcus Schuler edits BattlePolicy, a daily defense-technology brief connecting the companies and capabilities behind modern war to the contest among Europe, the US, Russia, and China.