On 11 May 2026, Budget Commissioner Piotr Serafin signed the first and largest loan agreement under the SAFE programme with Poland, marking the formal launch of a €150 billion EU defence credit line. Speaking at the ceremony in Warsaw, Serafin described the moment as historic, noting that the funds will create jobs, secure supply chains, and modernise the Polish military.
The agreement is the culmination of a process that began in April 2024, when Polish Prime Minister Donald Tusk hosted European leaders in Warsaw to discuss European defence in light of Russia's war on Ukraine. On 23 May 2024, Tusk and Greek Prime Minister Kyriakos Mitsotakis jointly proposed a bold EU defence initiative. At the time, scepticism remained, and unanimity was lacking. The proposal gained traction during Poland's EU presidency in early 2025, when the European Commission, in consultation with the Polish government, tabled the SAFE project — low-interest, long-term loans guaranteed by the EU budget, up to €150 billion. The package was negotiated and adopted in record time.
Serafin stressed that SAFE is a first step, not the last. He and Defence Commissioner Andrius Kubilius are already advocating for defence to remain a priority in the next multiannual financial framework starting in 2028. The Commissioner contrasted today's EU with the Union Poland joined in 2004, arguing that while the EU remains a project of peace and prosperity, it must now also be militarily strong to preserve those values.
the SAFE loan programme itself, with a clear budget ceiling and timeline, and a call to embed defence spending in the next EU budget. The policy orientation shifts the EU from a primarily civilian power toward a more assertive defence posture, with joint borrowing and spending. The tone was celebratory and forward-looking, emphasising Polish ownership of the initiative.
Stakeholder impact - EU taxpayers: bear the contingent liability of €150 billion in guaranteed loans; positive if defence spending boosts security and economic activity, negative if defaults occur. - Polish defence industry: direct beneficiary of the largest share of funds, with new jobs and modernisation. - EU defence sector: gains from integrated supply chains and stable demand across member states. - National governments: receive access to cheap credit for defence, but must manage debt and coordinate procurement.
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