The SAFE program – Security Action for Europe – is a new EU financing instrument adopted by the Council of the European Union on May 27, 2025. It forms the first pillar of the European Commission’s ReArm Europe/Readiness 2030 plan, which aims to mobilize over 800 billion euros in defense spending across the EU.

SAFE enables member states to take out low-interest loans with long maturities of up to 150 billion euros. These funds are to be used exclusively for urgent and large-scale investments in the European defense industry.

The instrument is a response to Russian aggression against Ukraine, which revealed serious gaps in Europe’s defense capabilities – from insufficient ammunition reserves and fragmented procurement strategies to inadequate industrial production capacities.

A central principle of SAFE is the requirement for joint procurement projects: each project must involve at least two participating states. In addition to EU member states, Ukraine and EEA-EFTA countries can also participate in the program.

Poland – the Largest Beneficiary of the SAFE Program

Poland has submitted an application to the European Commission comprising 139 defense projects worth a total of 43.7 billion euros – making it by far the largest beneficiary of the SAFE program, claiming nearly one-third of the entire fund.

On February 17, 2026, the EU Council finally approved the Polish investment plan, paving the way for the release of funds.

The Polish government states that 80 to 89 percent of SAFE funds – approximately 150 to 160 billion zlotys – are to be spent in the domestic defense industry. The goal is to significantly increase the share of Polish companies in military contracts and to create new production lines, jobs, and innovative projects by 2030.

Which Projects Does Poland Plan to Finance Under SAFE?

The complete project list is confidential for security reasons. However, some projects are already publicly known:

• Borsuk Infantry Fighting Vehicle – a modern amphibious tracked vehicle with advanced targeting systems.
• Krab Self-Propelled Howitzer – one of the flagship products of the Polish defense industry, manufactured by Huta Stalowa Wola.
• Piorun Anti-Aircraft Missiles – portable anti-aircraft missile systems that have proven highly effective against drones and helicopters.
• 155mm Artillery Ammunition – produced by, among others, Polska Amunicja; essential for self-propelled artillery. The demand created by the war in Ukraine is enormous.
• FlyEye and FT5-Łoś Reconnaissance Drones – unmanned systems by WB Group for reconnaissance and real-time surveillance.
• SAN Integrated Counter-Drone System – a response to the growing threat from unmanned aerial vehicles.
• Airbus Tanker Aircraft – aerial refueling aircraft from the European consortium. An example of a project carried out with a foreign partner under SAFE’s joint procurement requirement.

In addition to military equipment, SAFE funds are also to be used for infrastructure and cybersecurity.

Why is SAFE an Opportunity for German Companies?

The Polish defense industry – mainly concentrated in the Polish Armaments Group (PGZ) – is a dynamically growing but still limited structure. Although the share of domestic companies in military contracts has risen from 20 to nearly 40 percent over the past two years, the investment volume of 43.7 billion euros planned under SAFE by 2030 far exceeds the current production and technological capacities of the Polish defense sector.

The realization of 139 projects in such a short time is impossible without foreign partners – partners who have ready-made technologies, production lines, and know-how in advanced military equipment. This is precisely where opportunities arise for companies from Germany.

Germany – the Natural Technology Partner

Germany has one of the most advanced defense and technology industries in Europe. Companies such as Rheinmetall, KNDS (co-producer of the Leopard tank), Hensoldt, Diehl Defence, ESG Elektroniksystem, as well as numerous innovative companies in the fields of new technologies, artificial intelligence, and cybersecurity, have exactly what the Polish army needs – and what the Polish defense industry cannot yet produce independently.

Rheinmetall, already active in Poland (including through a joint venture with PGZ called Rheinmetall BAE Systems Land), is a good example of a cooperation model that can be adopted by other companies. Production facilities in Poland, ammunition supplies, or protection systems for combat platforms – these are areas where German manufacturers should seek and find their place in implementing SAFE projects.

Summary

SAFE funds are to be spent by 2030. First tranches will reach Poland as early as spring 2026. This means that decisions on partnerships, cooperation structures, and contract negotiations must be made now – before the Agencja Uzbrojenia (Procurement Agency) and the General Staff of the Polish Armed Forces officially announce tenders.

Companies that are first to build relationships with Polish defense companies, government agencies, and the Polish Armaments Group (PGZ) will secure a decisive competitive advantage in bidding for SAFE contracts.

The SAFE program is an unprecedented mobilization of financial resources for European defense. Poland – as the largest beneficiary with a budget of 43.7 billion euros – is becoming the central defense hub on NATO’s eastern flank.

For German companies in the technology and defense sector, this is a historic opportunity: the gap between the ambitions of the Polish army and the limited capacities of the domestic defense industry can be closed precisely through cooperation with partners from across the Oder – through joint ventures, technology transfers, joint consortia, and production investments in Poland.

Paweł Osiński

Attorney, expert in corporate law and support of foreign investments

If you have questions about establishing and managing companies in Poland, we are happy to assist. We speak German:

E-mail: pawel@osinski-legal.com

Tel. +48 698 765 048