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Poland's tusk vows to use EU defence loans despite president's veto

Published by Global Banking & Finance Review®

Posted on March 13, 2026

3 min read

Last updated: March 13, 2026

Poland's Tusk vows to use EU defence loans despite president's veto - Finance news and analysis from Global Banking & Finance Review

Tags:Finance Banking Markets Politics Europe

Quick Summary

Poland’s Prime Minister Donald Tusk vowed to proceed with defence funding via the EU’s SAFE loan programme despite President Karol Nawrocki’s veto, as the government devises Plan B to safeguard investment and national security.

Poland to Proceed With EU Defence Loans Despite President's Veto, Tusk Says

Polish Government's Response to Presidential Veto on EU Defence Funding

By Alan Charlish and Pawel Florkiewicz

Government's Determination to Secure Defence Funding

WARSAW, March 13 (Reuters) - Poland will use a European Union programme to fund defence despite a presidential veto of the scheme, the prime minister said on Friday, as he condemned the head of state for what the government has labelled a betrayal of the national interest.

The decision of opposition-backed President Karol Nawrocki to veto a bill creating a mechanism to spend 43.7 billion euros ($50.00 billion) in EU loans has intensified a rivalry with pro-EU Prime Minister Donald Tusk that complicates policymaking at Poland's highest levels.

Prime Minister Tusk's Statement

"A government meeting is imminent, during which the government will adopt a resolution on the basis of which we will finalise the Polish Armed Forces programme," Tusk told ministers.

"Today, everywhere in Europe is wondering what happened, how this is possible," Tusk said of Nawrocki's veto.

Presidential Concerns and Opposition Arguments

President Warns of Debt Risk

PRESIDENT WARNS OF DEBT RISK

Warsaw was the biggest beneficiary of the EU's Security Action for Europe (SAFE) initiative, but the nationalist opposition party, Law and Justice (PiS), labelled it a German plot to meddle in Polish affairs, which would saddle the country with debt and limit its flexibility on arms purchases.

Nawrocki's Justification for the Veto

PiS-ally Nawrocki said in a televised address on Thursday that he would veto the government bill to implement the programme because it would leave future generations of Poles paying huge amounts of interest to Western banks.

Government's Rebuttal and Alternative Proposals

Government's Defence of the SAFE Initiative

Tusk's government says SAFE provides financing at low interest rates and is essential to Poland's security in the face of what it views as a rising threat from Russia. The veto will hamper investment in the domestic defence industry, the government said.

The bill vetoed by Nawrocki would have enabled the state development bank BGK to operate a fund to disburse the cash.

Impact of the Veto and Alternative Funding Suggestions

Now the government will have to use an existing Armed Forces fund whose rules mean it will be unable to disburse some 7 billion zlotys ($1.87 billion) that had been earmarked for the border guard and the police.

President's Alternative Funding Proposal

Nawrocki has proposed an alternative bill that would involve using unrealised profits from the rising value of the central bank's gold reserves to fund defence.

Government's Rejection of the Alternative

The government has rejected this proposal saying it would delay investment, and that in any case the central bank has not been making a profit in recent years.

Additional Information

($1 = 0.8740 euros)

($1 = 3.7361 zlotys)

(Reporting by Alan Charlish and Pawel Florkiewicz; Editing by Kate Mayberry)

Key Takeaways

•Poland stands to receive €43.7 billion under the EU’s SAFE (Security Action for Europe) defence loan scheme—the largest allocation among member states, aimed at bolstering domestic defence industry and security preparedness (euronews.com).
•President Nawrocki vetoed the bill, citing sovereignty and debt concerns, and proposed a “SAFE 0%” alternative using central bank profits—moves the government says would delay crucial investment (polskieradio.pl).
•Tusk’s government insists it can still access SAFE funds via existing mechanisms and is preparing a resolution to finalise funding, warning that the veto complicates resource allocation for border guard and police units (apnews.com)

References

Frequently Asked Questions about Poland's Tusk vows to use EU defence loans despite president's veto

1Why did President Nawrocki veto the EU defence loans bill?

President Nawrocki vetoed the bill, arguing it would saddle future generations with debt and leave Poland paying high interest to Western banks.

2How does Prime Minister Tusk intend to proceed with EU defence funding?

Prime Minister Tusk stated the government will use an existing Armed Forces fund to continue with defence spending, despite the veto.

3What is the SAFE initiative and how does it benefit Poland?

The SAFE initiative is an EU programme offering loans for security and defence. Poland, its biggest beneficiary, receives low-interest financing.

4What impact does the presidential veto have on Polish defence investment?

The veto complicates disbursement of around 7 billion zlotys earmarked for border and police forces, limiting effective defence funding.

5What alternative defence funding did President Nawrocki propose?

He suggested using unrealised profits from the central bank’s gold reserves, but the government rejected this due to lack of recent profits.