Poland signed a SAFE agreement for €43.7 billion.
Introduction
On 8 May 2026 Poland signed a loan agreement under the EU SAFE programme, with a maximum value of €43.7 billion, paving the way for record financing of armed forces modernization and procurement in the domestic defence industry.
Poland the largest beneficiary of the SAFE programme
On 8 May 2026 a loan agreement was signed in Warsaw between the Republic of Poland and the European Commission under the EU instrument Security Action for Europe (SAFE). The agreement allows Poland to obtain up to €43.7 billion in low-interest loans to finance purchases of military equipment and the modernization of the Polish Armed Forces.
Poland is the first of 19 member states to sign a SAFE loan agreement and is also the largest beneficiary of the programme in terms of the allocation awarded. SAFE has a total budget of €150 billion in the form of loans for EU countries, intended primarily for the procurement of armaments and equipment, preferably from European manufacturers.
According to the programme’s assumptions and information provided by the government, SAFE financing is to support, among other things, projects related to artillery, ammunition, air defence, unmanned systems, strategic transport, cybersecurity, a space component, and critical infrastructure. Government communications indicated that a significant portion of the funds is expected to go to the Polish defence industry and companies cooperating with the security sector, which should translate into jobs and the development of local competencies.
Significance for Podkarpackie and Lublin regions
SSE EURO-PARK MIELEC is the first special economic zone established in Poland; it has been operating since 1995 and is managed by the Industrial Development Agency (ARP S.A.). The zone’s area includes 33 subzones located, among others, in the Podkarpackie and Lublin voivodships, where there is an extensive industrial base, including companies in the aviation, metalworking, machinery, electronics, plastics and engineering services sectors.
Official government materials indicate that up to around 12,000 enterprises across Poland that cooperate with the defence industry — operating in all voivodships — could benefit from the SAFE programme. This means that companies in Podkarpackie and Lublin — especially those located in the SSE EURO-PARK MIELEC area — have the potential to take part in fulfilling orders arising from contracts financed by SAFE, particularly in the supply of components, specialist services and dual-use technologies.
Supply chains and dual-use technologies
The SAFE programme is structured to both accelerate military equipment purchases by member states and strengthen the European industrial and technological base in the defence sector. Government documents and statements stress the importance of national supply chains and developing capabilities in modern technologies such as unmanned systems, counter-drone technologies, cybersecurity, satellite solutions, software and advanced electronics.
Companies in SSE EURO-PARK MIELEC with experience in producing precision components, control systems, electronic systems or IT solutions can — depending on the specific requirements of contracts — offer their products and services for both defence and civilian projects. These are so‑called dual-use technologies, i.e. technologies that can be used simultaneously in the defence industry and in civilian sectors (eg aviation, logistics, critical infrastructure, energy, digital services).
Possibility of combining SAFE with tax relief under the PSI
Alongside the SAFE programme, entrepreneurs investing in SSE EURO-PARK MIELEC can take advantage of instruments under the Polish Investment Zone (PSI), in particular corporate income tax exemptions related to implementing a new investment. Obtaining a support decision under the PSI is possible for both industrial projects and modern business services, regardless of whether the investment is located on public or private land.
According to ARP S.A., SSE EURO-PARK MIELEC offers some of the highest levels of public aid in the European Union, reaching up to 70% of eligible costs for micro and small enterprises, with a maximum duration of the support decision of up to 15 years and a low entry threshold in the form of minimum investment outlays starting at PLN 100,000. In practice, this means that an entrepreneur preparing a project related to expanding production capacity, process automation, implementing new technologies or building R&D facilities can — if they meet the programme criteria — combine the potential for future orders arising from SAFE with the tax benefits offered by the PSI.
Invitation to contact
SSE EURO-PARK MIELEC, managed by the Industrial Development Agency (ARP S.A.), provides services to entrepreneurs interested in investing in the zone, including under the Polish Investment Zone. The zone’s team assists in analysing the possibility of obtaining a support decision, determining the level of available public aid and preparing the investment process in accordance with applicable regulations.
Detailed information on the rules of operation of SSE EURO-PARK MIELEC and the Polish Investment Zone, including the public aid map, investment thresholds and qualitative criteria, is available on the zone’s website and in official materials from ARP S.A. and the ministry responsible for economic affairs.
