Tuesday, 10 March 2026
The debate over Polish defense financing has entered a new phase following the presentation by President Karol Nawrocki and National Bank of Poland President Adam Glapiński of an alternative to the European SAFE program. The proposal, dubbed “SAFE 0%,” would allocate roughly PLN 185 billion for military modernization without borrowing or interest costs.
According to its authors, the funds could be generated through financial operations linked to the National Bank of Poland’s assets, including the rising value of gold reserves and potential central bank profits. President Nawrocki described the concept as a “sovereign and secure alternative,” arguing that it would allow Poland to strengthen its military without increasing public debt or relying on EU financial mechanisms. The approach, he suggested, would also offer greater flexibility in procurement, including the possibility of purchasing equipment from outside the European Union, such as the United States.
The proposal comes amid a broader political dispute over Poland’s participation in the EU SAFE program. Parliament has approved legislation enabling access to the mechanism, which could provide tens of billions of euros for defense investment. Supporters within the government argue that the program offers relatively inexpensive financing at a time of growing security threats in Europe.
Critics, however, warn that participation could increase Poland’s long-term debt burden and potentially link defense decisions to political conditions set in Brussels. From this perspective, the “SAFE 0%” concept is presented as a way to avoid common European debt while preserving strategic autonomy.
Economists have raised significant concerns. Some analysts argue that using central bank profits or the revaluation of gold reserves to finance public spending could effectively amount to indirect monetary financing, which may conflict with constitutional restrictions on central bank activity. Others warn that such mechanisms resemble large-scale money creation, potentially increasing inflationary pressure.
There are also practical doubts about the reliability of the proposed funding sources. Central bank profits are inherently volatile and, in recent years, have not consistently contributed to the state budget. Building long-term defense spending on such uncertain revenues could therefore prove unstable.
The debate reflects a broader dilemma faced by many medium-sized countries: how to finance national security without undermining fiscal stability or political sovereignty. The SAFE 0% concept does highlight an important point—public debt is never free, even when incurred through European instruments often perceived as “cheap money.”
Yet the economic constraints remain clear. Military spending ultimately must be financed through taxes, borrowing, or—in extreme cases—monetary expansion. History shows that relying on the latter rarely leads to stable outcomes.
For Poland, the key challenge is therefore not simply choosing between national or European financing tools, but ensuring transparency in defense spending and carefully assessing which mechanisms genuinely strengthen the country’s long-term security. In a period of rising geopolitical tensions, maintaining both military strength and sound public finances will be essential, as the two remain closely intertwined.
Source: WEI
