Poland Vetoes EU Defense Funding

Poland's Eurosceptic President Karol Nawrocki on Thursday evening vetoed legislation that would have allowed the country to access €44 billion in European Union defense funding. This decision prevents Poland from utilizing nearly a third of the €150 billion in loans made available last year to EU member states for rearmament efforts.

Nawrocki cited concerns that accepting the Security Action for Europe (Safe) loans would grant Brussels undue influence over Poland's national security decisions, asserting that the country's security should not depend on foreign decisions.

Prime Minister Donald Tusk convened an emergency cabinet meeting on Friday to address the veto. Tusk criticized the president's action as a "serious impediment" and indicated that his government would pursue alternative financing proposals that do not require presidential approval to channel Safe money into an existing Polish army fund. The interest rate for the Safe program was approximately 3.1% as of March 2026, while Polish 10-year government bonds recently traded between 4.88% and 5.68%.

Nawrocki, nominated by the Eurosceptic PiS opposition, argued that the Safe program constituted a "massive foreign loan taken out for 45 years in a foreign currency," with potential interest costs reaching 180 billion zlotys ($48 billion). He proposed using central bank reserves, including gold sales, as a cheaper financing alternative. Tusk's government has dismissed this idea, noting recent losses reported by the Polish central bank.