The European Commission has approved Poland’s Security Action for Europe (SAFE) loan request, making it the first EU member state to clear the process under the bloc’s new defense financing mechanism, Polish media reported.
Under the arrangement, Warsaw is set to receive up to 43.7 billion euros ($51.4 billion) in loans through SAFE, which was created to help EU member states scale up defense investment.
The financing is expected to support a range of military modernization efforts, including border and air defense, counter-drone capabilities, artillery programs, and upgrades to military transport infrastructure.
The country has said that 89 percent of the funding would be directed toward domestic industry and the wider economy.
According to Polish media reports, an initial pre-financing tranche of around 6.5 billion euros ($7.6 billion) could be disbursed later this month, making Poland likely the first country to access funds under the scheme.
Security Action for Europe
SAFE allows the European Commission to borrow on capital markets and provide loans to member states for defense-related investments.
Poland is the first country to finalize an agreement under the mechanism, with Lithuania expected to follow.
Up to 19 EU member states have applied for SAFE financing.
Hungary remains the only applicant without approval after the European Commission reportedly rejected a request for an additional 2 billion euros ($2.3 billion) and raised concerns over its proposed spending plan.
SAFE provides up to 150 billion euros ($172 billion) in loans and is part of the EU’s broader ReArm Europe Plan/Readiness 2030 initiative, intended to accelerate defense procurement and industrial investment across the bloc.
The wider package is designed to unlock more than 800 billion euros ($919 billion) in additional defense spending through a mix of EU-backed financing tools and national spending measures.
