The PSL submitted the bill to the lower house of parliament on Tuesday to create a Polish Defense Investment Fund, opening a new chapter in a dispute over how to channel additional money into defense, state news agency PAP reported.
Defense Minister Władysław Kosiniak-Kamysz, leader of the PSL, said the measure corrects what he described as shortcomings in the president’s draft legislation, dubbed "Polish SAFE 0%."
He argued that the presidential plan failed to identify a clear source of funding for the armed forces and gave the president excessive influence over the fund’s supervision. That, he said, would violate the constitution by encroaching on the powers of the government and the defense ministry.
"We have submitted a bill on the Polish Defense Investment Fund authored by the PSL parliamentary caucus, which fixes the errors of the presidential draft," Kosiniak-Kamysz told reporters.
Glapiński has suggested that unrealized gains from rising gold valuations could reach about PLN 197 billion (EUR 46 billion) and could be paid out as profit over several years, earmarked for defense purposes.
Kosiniak-Kamysz said the PSL proposal effectively tests that claim.
“If that money is not there, it will come out, and it will be an embarrassment for the central bank governor and also for the Presidential Palace,” he said.
"If the funds are available, we are very much interested in using them for Poland’s security," he added.
He also invited Glapiński to meet with PSL lawmakers to provide further details.
The proposal broadens the scope of the planned fund beyond the military. Kosiniak-Kamysz said it would also support other services, including the police, the Border Guard, cybersecurity, intelligence and military healthcare.
At the same time, he said the government would retain decision-making authority over the fund, while representatives of both the president and the prime minister would sit on its governing bodies.
“The government has authority over this fund, and that is in line with the constitution,” he said. “It is the government that is in charge, and this law guarantees that.”
The dispute began after Nawrocki vetoed a government bill designed to implement the European Union’s Security Action for Europe (SAFE) mechanism.
The EU program offers up to EUR 150 billion in low-interest loans to help member states boost defense spending. Poland’s application, worth EUR 43.7 billion, has been approved by EU institutions, making it the largest beneficiary of the scheme.
According to the government, about 89 percent of the funds were expected to go to Polish defense companies, with some also earmarked for the police and the Border Guard.
The presidential veto forced the government to seek an alternative route. The Cabinet then adopted resolution under the “Arming Poland” program, authorizing the defense and finance ministers to sign documents for a SAFE loan to be taken out by state development bank BGK for the Armed Forces Support Fund.
However, that mechanism has limitations, as the fund can be used only for military purposes, potentially excluding other services and infrastructure projects.
Kosiniak-Kamysz said he wants the PSL bill processed quickly and believes it could win support from both the governing coalition and the opposition.
Nawrocki has warned the government against trying to obtain EU defense funds without his authorization.
(rt/gs)