Finance
Polish alternative to EU's 'SAFE' will not lower central bank's reserves, says governor
Published by Global Banking & Finance Review®
Posted on March 5, 2026
3 min readLast updated: March 5, 2026
Quick Summary
Poland’s central bank governor Adam Glapiński said on March 5 that any Polish alternative to the EU’s SAFE defence financing will avoid draining central bank reserves, instead potentially drawing on NBP’s profits—especially from gold revaluation gains.
Polish alternative to EU's 'SAFE' will not lower central bank's reserves, says governor
Poland's Position on EU's SAFE Programme and Defence Financing
By Karol Badohal
Central Bank's Stance on SAFE Alternatives
WARSAW, March 5 (Reuters) - Poland's central bank (NBP) will not propose any alternative to the European Union's 'SAFE' programme for defence financing that would lower its reserves, Governor Adam Glapinski said on Thursday, adding he believed the bank's profits could be used.
Debate Over SAFE in Poland
Warsaw was the biggest beneficiary of the EU's 150-billion-euro Security Action for Europe (SAFE) initiative to boost the continent's armed forces, but the programme has been hotly debated in Poland as nationalists oppose Brussels getting involved in defence.
Nationalist Opposition to SAFE
Nationalist opposition party Law and Justice (PiS) says SAFE would saddle Warsaw with debt, limit arms purchases from Warsaw's most important ally, the U.S., and that it comes with conditions that PiS says are intended to allow German meddling in Polish affairs.
Government's Support for SAFE
The government has dismissed these views and says 'SAFE' is essential for Polish security in the face of what it says is a rising threat from Russia. However, PiS has urged its ally President Karol Nawrocki to veto the government bill that would create a mechanism for spending the money from EU loans.
Funding Defence: Alternative Plans and Challenges
Finance Minister's Perspective
Finance Minister Andrzej Domanski expressed caution on Nawrocki's efforts to reach agreement with the NBP on an alternative plan to fund increased defence spending.
"If the NBP generates a high profit and transfers it to the budget – very good. For now, however, for three years not a single zloty has reached the budget on this account," Domanski wrote on X.
"(Poland's) security cannot depend on one-off operations... The real SAFE, which is ready to be signed by the president remains the cheapest and best source of funding for defence investments."
Presidential Decision on SAFE
Nawrocki has several weeks to decide whether to veto or approve the bill allowing for Polish participation in SAFE. The government said it would circumvent a presidential veto but with certain restrictions on use of the funds.
Details of the Polish Alternative
Discussions Between Presidency and Central Bank
POLISH ALTERNATIVE
Nawrocki, appearing alongside Glapinski on Wednesday, said they had been discussing a plan to use Polish funds instead of EU loans, but they did not announce specific details of how it might work.
Governor Glapinski's Statement
"We intend to propose actions that will not lead to a depletion of our foreign exchange reserves," Glapinski told a news conference on Thursday. "We do not seek to deplete our reserves. We have accumulated these reserves for a different purpose."
He said central bank profits could be used and that the government and the presidency should be the first to know the details.
He said the NBP would act within the limits of its mandate, but that Poland's presidency was working on draft legislation that would increase the central bank's ability to support defence spending, without elaborating.
Use of Gold Reserves
Leszek Skiba, an adviser to Nawrocki, wrote on X that the plan would involve the NBP using profits from the increasing value of its gold reserves.
Additional Information
($1 = 3.6794 zlotys)
(Reporting by Pawel Florkiewicz, Karol Badohal and Marek Strzelecki; Writing by Anna Koper and Alan CharlishEditing by Gareth Jones)
Key Takeaways
- •No reserve depletion: Governor Glapiński emphasised the Polish alternative to SAFE wouldn’t reduce foreign exchange reserves.
- •NBP profits key: The plan could utilise central bank profits, particularly valuation gains from rising gold reserves.
- •SAFE importance and scale: Poland, as the largest beneficiary, stands to receive €43.7 billion under SAFE, a €150 billion EU defence initiative.
Frequently Asked Questions about Polish alternative to EU's 'SAFE' will not lower central bank's reserves, says governor
1What is the EU's SAFE programme?
The EU's SAFE programme is a 150-billion-euro initiative designed to boost Europe's armed forces and finance defence spending.
2Why does Poland oppose EU's SAFE programme?
Nationalist parties in Poland, like PiS, argue that SAFE could increase debt, limit arms purchases from the US, and enable external political interference.
3Will the Polish central bank use its foreign exchange reserves for defence funding?
No, the central bank governor stated they will not propose actions that deplete foreign exchange reserves for defence.
4How might Poland fund defence if not through SAFE?
Governor Glapinski mentioned using central bank profits, particularly from gold reserves, instead of EU loans.
5Is there already a detailed plan for Poland's alternative to SAFE?
No specifics were announced yet, but draft legislation to support defence spending is being developed.
