– Karol Nawrocki together with NBP president Adam Glapinski announced the initiative SAFE 0 percent, which is to be an alternate to the European SAFE programme. The President's proposal is to warrant PLN 185 billion for reinforcements. What's the idea?
– This is primarily an effort to find an alibi for not signing the EU SAFE program. After all, this is pure politics, due to the fact that it is not even about reducing the cost of arms. The president wants us to buy equipment for the military from Donald Trump, and the government prefers to buy equipment in Poland and the European Union. Karol Nawrocki defends the interests of the United States, due to the fact that strengthening the Commonwealth is not, of course, in the hands of the President. Technically, this task “Polish SAFE 0 percent” is to be done. I have been talking about specified an initiative for a long time, but more so in the context of Poland's entry into the euro area.
– There is simply a discussion on where to get money for SAFE 0 percent. By the way, what's more profitable? European SAFE or possibly funded by NBP?
– The discussion on credit costs, 1 or the other, is simply a substitute discussion. The fact is that this EU SAFE means buying ammunition and weapons, possibly not 100 percent in the European Union, but mainly on the Old Continent, and thus besides in Poland. The thought of Americans is that the EU spends money on arms in the United States.
– president Karol Nawrocki goes out with Adam Glapinski, head of NBP, and talks about the amount of PLN 185 billion that they will not affect any interest, they will not affect credit until 2070, they will not affect a change in the situation in the European Union; and they will have the essential flexibility for the Polish Armed Forces to choose equipment, whether from the EU or from another regions of the world. You were the president of the NBP. Tell the Poles where to get this immense money? You'll gotta sale gold, as any politicians and commentators suggest?
– Everyone's talking about this gold. Gold flash blinds everyone. But it's not about gold, it's about currency reserves.
– A spokesperson for the president of the Republic of Poland asked where to get money, says the usage of the very fact that the NBP holds reserves. How do you figure that out?
– NBP has reserves worth almost a trillion zlotys. And it doesn't substance if they're gold reserves, in currency or in securities. This is all done as follows: an institution that makes purchases, e.g. Bank Gospodarstwa Krajowego, issues very low-interest bonds with which it pays for currencies, and the NBP receives these currencies by selling the securities it holds, whether American or European, or receives gold. That's it. This is possible, but in a sense it is dangerous.
Why?
Politicians aren't stupid. erstwhile it comes to precedent, they'll rise their hands on another occasion for money for another purposes. But all targets are right.
– But there are any fuses? I'm talking about records that let you to activate certain reserves in emergency situations under certain conditions.
- Weak. In fact, if there is political agreement, it can be done without a problem. On the another hand, it is essential to consult the European Central Bank so that at least there is simply a silent agreement to do so. Yeah, but it's known there's a sub-arm situation and reinforcements are necessary. I so believe that the European Central Bank could agree. You asked about the fuses. The Constitution prohibits the financing of the budget deficit by the NBP. But specified purchases can take place outside the budget. For example, a peculiar fund may be set up, which will issue bonds to a negligible percent which the NBP will later focus. It's not a large problem.
– In the title of the summary, how do you measure this initiative SAFE 0 percent?
– The government rightly believes that first we request to launch the European SAFE, because, finally, the most crucial thing, I was talking about it at the beginning, is not the cost of this credit, but what it will be allocated to. Or to buy American weapons? This is crucial because, as we know, at the minute there is no 100% certainty that the president of the United States Donald Trump or individual else, for example, will not put up any amazing conditions with this weapon. It may turn out at any point that for the US, the possible of doing business with Russia is more crucial than NATO's territorial integrity.
