Poland's Central Bank Debates Defence Funding Strategy

Poland's central bank, led by Governor Adam Glapinski, will not propose an alternative to the EU's SAFE programme for defence financing. Nationalists have opposed SAFE, citing concerns over debt and foreign influence. Discussions include using Polish funds and central bank profits for defence spending instead of EU loans.

Poland's central bank is at a crossroads as it decides whether to pursue an alternate defence financing strategy, steering clear of the EU's SAFE programme. Governor Adam Glapinski reiterated the bank's preference to conserve its foreign exchange reserves and suggested utilizing its profits instead.

The SAFE initiative, which aims to enhance European military capabilities, has sparked a major political debate in Poland. The nationalist Law and Justice Party (PiS) has articulated strong opposition, arguing that the programme could entangle Poland in debt and limit its alliances, particularly with the U.S.

Despite these concerns, the PiS has called for a presidential veto on related legislation. Governor Glapinski and President Karol Nawrocki have hinted at using domestic resources, but specifics remain undisclosed. The move includes leveraging the central bank's gold reserves for defence funding.

(With inputs from agencies.)