Yesterday's gathering at the Presidential Palace between president Karol Nawrocki, Prime Minister Donald Tuski and NBP president Adam Glapini brought the first details concerning the task "Polish SAFE 0%". The talks afraid alternatives to the EU Defence Finance Programme. The gathering was besides attended by Deputy Prime Minister and National Defence Minister Władysław Kosiniak-Kamysz. After the talks informedthat the presidential bill was directed to the Sejm, where it was to begin.
The president presented details of the task of Poland SAFE 0%. This is simply a proposal that came out of the presidential office and from the president of the National Bank of Poland Adam Glapiński as a national alternate to the EU SAFE programme. The Brussels mechanics involves granting preferential loans to associate States to finance defence expenditure. Poland could gain up to EUR 43.7 billion from it, but these funds would be a classical loan, which must be repaid with interest, in addition to abroad currency and on the basis of the conditions already known from the time of the KPO.
The presidential proposal implies a different approach to financing safety spending. According to the authors, Poland could get a akin scale of funds for the modernization of the army, but without having to take abroad debt and pay interest. The mechanics is to be based on the engagement of the National Bank of Poland and the usage of its assets.
According to the project's authors, “SAFE 0 percent” would be a peculiar financial mechanics supporting investments in Polish armed forces. The National Bank of Poland would play a key role, which through its assets and financial instruments would let to rise funds for defence purposes without charging interest.
In practice, this would imply the creation of a national arms financing strategy to replace the usage of EU loans. According to representatives of the President's office, 1 of the sources of backing considered may be the NBP abroad reserves, including assets held in gold.
The project's authors stress that specified a mechanics is intended to be of a "subsidiary" nature and give Poland greater freedom to make decisions regarding the acquisition of military equipment. The measures would straight address the most crucial needs of modernisation of the army, without any restrictions which, according to the project's creators, may consequence from European financial instruments.
The president points out that the implementation of the programme requires the cooperation of 3 key centres of the state: the President, the Government and the National Bank of Poland. It is only specified cooperation that will enable the financing mechanics to be activated and appropriate government adopted. Therefore, the bill prepared by the President's law firm is intended to make the legal basis for the operation of the programme. The Sejm would decide on its final form and on the usage of defence funds.
The proposal "SAFE 0%" from the beginning raises a political and economical dispute. task supporters argue that it will let to finance the modernisation of the army without expanding the debt to global institutions. However, critics point out that the concept may be hard to implement in the light of the provisions governing the operation of the central bank. Prime Minister Donald Tusk, after gathering the President, assessed the proposal as being "SAFE 0 PLN", stressing the deficiency of circumstantial financial resources. This is of course a typical propaganda play for him to hit the presidential camp.
Addressing the bill to the Sejm means starting the legislative process. In the coming weeks, Members will examine the details of the financing mechanics and its compatibility with national and European law.
The discussion on "SAFE 0%" at the same time shows a broader dispute over how State safety should be financed – whether it should be based on European financial instruments or solutions created exclusively at national level. The final form of the programme will depend on the decision of Parliament and the agreement between the government, the president and the National Bank of Poland.
