Poland Unpacked week 12 (9-15 March 2026)

President Karol Nawrocki has refused to sign the bill that would have allowed Poland to take out the EU’s SAFE (Support for Ammunition, munitions and related equipment) loan, marking a major clash over how to finance the country’s defence buildup. In a televised address on Thursday evening, Mr. Nawrocki said he would not stamp legislation enabling the SAFE borrowing because, in his view, it amounts to a massive foreign loan denominated in a foreign currency, drawn over up to 45 years, and would burden Polish taxpayers for decades. He framed the mechanism as a long‑term debt that could compromise Poland’s economic independence and future generations’ finances.

Mr. Nawrocki grounded his decision in constitutional concerns, arguing that granting foreign institutions leverage over Poland’s defence spending risks eroding state sovereignty. He pointed to Article 90 of the Polish Constitution, which allows delegating some powers to international organisations, but he insisted that authority over the armed forces is part of the core of sovereignty that cannot be transferred.

As a result, he declared he would not sign any act that, in his reading, “strikes at Poland’s sovereignty, independence, and economic and military security.” His refusal has triggered sharp reactions from the government, with the defence minister warning that the veto undermines Poland’s security and the prime minister vowing to push forward with a “Plan B,” while the government spokesperson called the move an “act aimed against Poland’s security” and accused Mr. Nawrocki of aligning himself with the opposition Law and Justice (PiS).

In this Poland Unpacked we have for you political and economic analysis of the presidential decision and his alternative to the EU loan.

While wars continue in Iran and Ukraine, and Polish politicians spar over the SAFE initiative, entrepreneurs and students in Poland are getting on with business. 

One firm aiming to challenge Chinese pharmaceutical manufacturers isRezon Bio, part of the Polpharma Biologics group owned by Jerzy Starak. Mr. Starak, ranked among the country’s 100 richest individuals, was already doing business during the communist era, before 1989. In 2000 he acquired the privatized drugmaker Polpharma. Rezon Bio plans to focus on manufacturing biological medicines for international pharmaceutical companies as a Contract Development and Manufacturing Organization (CDMO). The company is currently negotiating with potential partners to relocate production to Poland. Output from Polish facilities would be supplied to markets across Europe and the United States. The firm is the only Polish company accredited by the U.S. Food and Drug Administration to manufacture biological medicines for the American market. We have covered their plans here.

Meanwhile, ELQ, a Polish manufacturer of transformer substations, wants to take part in rebuilding Ukraine’s energy sector and has no intention of waiting for the war to end. As early as this half-year it will begin constructing solar farms with energy storage facilities. Projects currently in ELQ’s portfolio include renewable-energy capacity totaling 2 GW, with planned capital expenditure of EUR 2.5bn (about PLN 10.8bn). The company says that 14 projects are already ready for construction. Read all about the idea here.

It is not only seasoned managers who are investing. Poland’s first student-run investment vehicle has just been launched and we have covered their story here. It cannot call itself an “investment fund” – the term is reserved under Polish law, as students were reminded by the Polish Financial Supervision Authority (KNF) – but it will nonetheless invest capital. After overcoming a series of institutional hurdles, including changing name into Fundusz Hossa ProCapital students from the Wrocław University of Economics and Business have begun investing real money. Their track record with virtual funds has been modest: simulated investments produced a negative return of –0.89%. The students say they will be more cautious with real capital. Of a planned PLN 100,000 (about EUR 23,000), they have raised just under PLN 45,000 (about EUR 10,400). Thanks to agreements already signed with partners, however, the pool is expected soon to exceed PLN 80,000 (around EUR 18,500). 

Students may have been learning with virtual money, but real losses were once incurred by Generali. Three years ago the insurer became the first in Poland to introduce dog insurance. The firm’s chief executive admits the venture proved an expensive lesson. Among other things, it revealed that Poles are willing to spend more insuring their pets than their apartments. Today dog insurance has turned profitable, and Generali is considering a similar product for cats. Read all about it here.

The past week in Polish politics was dominated by debate over the EU’s SAFE program. On Thursday President Karol Nawrocki announced that he would veto the law implementing a financial instrument guaranteeing loans for the purchase of defense equipment worth almost EUR 44 billion (around PLN 190 billion). Poland is the largest beneficiary of the program within the European Union.

The president made his decision after weeks of public debate in which his political camp and the Law and Justice (PiS) party criticized SAFE, suggesting it would make Poland dependent on Germany and harm relations with the United States. In reality, almost 90% of the funds from SAFE are expected to go to Polish arms manufacturers.

Prime Minister Donald Tusk has announced that Poland will implement SAFE regardless. However, because of the presidential veto, the police and the Border Guard may feel the consequences.

The president’s decision reflects the increasingly eurosceptic direction of the Polish right. Our journalists covered the development and its consequences here.

Another important development on the right fits this trend. Law and Justice (PiS) has named its candidate for prime minister with an eye on the parliamentary elections scheduled for October 2027. The largest opposition party hopes to return to power under the leadership of Przemysław Czarnek, a vice-president of the party and minister of education and science from 2019 to 2023.

Mr. Czarnek is a politician known for his sharp rhetoric and radical views. The leader of Law and Justice, Jarosław Kaczyński, has backed him in the hope that he will help win back voters who currently support Confederation and Confederation of the Polish Crown. Both parties have been gaining ground on the right. See what this decision means in our article here.

At XYZ we also examined research on local democracy. It shows that Polish local governments struggle to build relationships with residents. At the same time, there is a clear reluctance in society to engage in public life. Read the full story here.

The Sejm has elected new judges to the Constitutional Tribunal. Under the rule of Law and Justice, the court became dominated by figures sympathetic to the previous government. This time, parliament selected judges who had not been politicians. Some of them faced repression under the previous administration. In the coming days it should become clear whether President Karol Nawrocki will allow them to begin adjudicating.

Meanwhile, Civic Platform (KO), the party led by Mr. Tusk, is in the process of selecting its new leadership. The prime minister has once again been elected party leader, but it should soon become clear who will sit on the new executive board.

Last week, the president of the National Bank of Poland, Adam Glapiński, outlined how a domestic substitute for the SAFE program might work. Earlier, both Mr. Glapiński and President Karol Nawrocki had referred to the idea as the “SAFE 0%” program.

The mechanism would work as follows: the central bank would sell part of its gold holdings, thereby realizing gains generated by the sharp rise in gold prices in recent years. The proceeds would remain within the country’s reserves in the form of major international currencies (dollars and euros), but on paper the bank would record a profit. That profit would then be transferred to finance arms purchases.

There are, however, several serious reservations about the entire construction. First, selling gold runs counter to the objective adopted by the bank in January this year, under which gold reserves are to reach 700 tons (currently they stand at 570 tons). Second, it is unclear what amount could actually be raised through such operations. At present the National Bank of Poland’s unrealized gains on gold amount to nearly PLN 200bn (about EUR 46bn) – roughly the same as the size of the loan envisaged under the SAFE program. In other words, to obtain a comparable sum, the bank would have to sell all of its gold holdings, which contradicts the most basic principles of reserve management. Third, the NBP president indicated that the idea would be pursued only if the government agreed to an appropriate law proposed by the president – something that already goes beyond the central bank’s mandate. For details read our article here.

Lurking behind the dispute over the SAFE program is a renewed fear of inflation. In February it stood at 2.1% year on year, but in the coming months it is expected to rise. The reason, of course, is the conflict in the Middle East and the sharp jump in oil and gas prices. Could there be a repeat of 2022–23, when inflation reached nearly 20%? Read our analysis to know the risk.

Yet last week also brought – once again – some good news about the Polish economy. According to Eurostat, Poland recorded the third-highest increase in GDP per capita between 2020 and 2025 (after Croatia and Bulgaria). In cumulative terms it rose by as much as 20%. Over the same period, average GDP per capita across the EU increased by just 6%. Here's what you need to take away from this release.

2025 was a successful year for T-Mobile Polska in both commercial and financial terms, the company’s chief executive, Andreas Maierhofer, told XYZ. In his view, however, the Polish telecommunications market is among the most competitive in Europe. Prices for both mobile and fixed telecom services rank among the lowest in the European Union. That is, of course, good news for customers.

For telecom operators, however, it means constantly adapting their strategies to current market realities – while the industry must continue to invest vast sums in infrastructure.

The company is therefore reorganizing its product offering. It has withdrawn Heyah 01, a digital subscription-based plan. The decision was made to maintain a single digital offering; instead of Heyah 01, the company opted for Red Bull Mobile. The Heyah brand itself will remain on the market.

Over the past decade, T-Mobile has invested an average of PLN 1.5 billion (about EUR 354 million) annually in the Polish market. Most of the money has gone into infrastructure – above all the expansion of the network, particularly 5G. The company does not plan to scale back investment and the CEO talked about their plans here.

Investments in space technologies have also been announced by Sieć Badawcza Łukasiewicz, which brings together 22 public research institutes. The network has presented a ten-year Space Research Program with an estimated value of PLN 2.4 billion (about EUR 566 million) at current prices, excluding future inflation.

The strategy includes dozens of projects organized into three pillars: the development of satellite platforms, technologies for launching them into orbit, and work on so-called payloads – scientific instruments and equipment deployed in space.

Among the strategic goals of the Łukasiewicz Space Research Program is enabling Poland to achieve technological independence in launching satellites weighing between 100 and 200 kilograms. The strategy also outlines plans to place satellites into low Earth orbit using mobile launchers and aircraft. Another objective is to strengthen Poland’s international position in environmentally friendly space propulsion technologies.

Some of the activities are to be carried out in cooperation with private companies. Many of the projects will have a dual-use character, with both civilian and military applications. Get to know all about it in our article here.

We also discussed the development of artificial intelligence with Piotr Wielgomas, chief executive of BIGRAM. In his view, AI is already accelerating layoffs – even in profitable companies such as Block, Amazon and Anthropic – by replacing repetitive tasks. Yet the pace of change will likely be slower than big tech firms anticipate.

Ultimately, human psychology will be decisive. Resistance to novelty will slow the AI revolution, and the human factor in working with AI will remain indispensable for a long time. One principle, however, is already clear: the idea of a job for life is fading.

What matters today is mobility, continuous learning and relational capital. It is therefore worth investing in a personal brand, professional networks and soft skills. For workers aged 50 and above, flexibility will be crucial – such as a willingness to work on a project basis or to move into the public sector. The labor market will continue to need people, provided they are ready to adapt. Enjoy the full interview here.

Our recommendation this week is an art exhibition. “Szapocznikow. Osobista” (Szapocznikow. Personal) at the National Museum in Kraków. A deeply intimate survey of one of Poland’s most important post‑war sculptors.

Alina Szapocznikow’s radical, body‑centered works – brutal, distorted silhouettes and hyper‑naturalistic polyester casts – turn trauma, illness, and eroticism into a visceral aesthetic, shaped by her childhood in concentration camps and her battle with cancer. According to the curator, the show is shaped in a small, chamber‑like space that heightens the sense of bodily closeness, so even if you can’t touch the sculptures, the exhibition feels almost tactile – a powerful, unsettling encounter with a body of work that refuses to look away from pain, yet insists on sensuality and pleasure.

Where: Kraków, National Museum (https://mnk.pl/en/)
When: 20 March–23 August 2026

On 21 March - officially the first day of spring - Poland closes winter with a ritual that looks suspiciously like a mob justice case against a straw doll: topienie Marzanny, or “drowning Marzanna.” It might not be so popular as in the past, but still. You may come across groups that assemble a rag‑bundle figure, wrap her in flowery spring clothes, march her to the nearest river, then gleefully throw her into the water while chanting, whistling, or sometimes just giggling.

The same day also marks Dzień Wagarowicza (Truancy Day), when students across the country stage a semi‑official rebellion against classrooms in favour of parks, cafés, and questionable life choices. To the outside observer, it looks like a coordinated mass escape from educational facilities. So, if you see a suspiciously large numbers of teenagers - yes, they should be at school... My fear is that since this year 21 March is a Saturday, they'll try to celebrate it on Friday...