Finance Minister Andrzej Domański of Poland firmly rejects the idea put forward by President Karol Nawrocki and central bank governor Adam Glapiński to use gold reserves to fund the military, preferring immediate European loans like the SAFE program in a context of high political tension over Poland’s defense strategy.
Tensions rise in Poland over military financing. Finance Minister Andrzej Domański has sharply rejected the proposal by President Karol Nawrocki and central bank governor Adam Glapiński to mobilize gold reserves to fund the military. He described the idea as a “mirage,” highlighting a clear divide at the top of the state.
Specifically, this plan would involve selling part of the gold held by the central bank, or using the potential profits from these reserves to support military spending as an alternative to European loans, including the SAFE program. But Andrzej Domański opposes this directly: “I refuse to accept [the idea of] modernizing the Polish army on the basis of the mirage of future central bank profits – I refuse,” he insisted to the Financial Times.
The minister emphasizes a budget urgency that is incompatible with this type of arrangement. The central bank’s earnings remain uncertain and will not be clearly established for several months.
“We need resources to modernize the Polish army now. I see no interest in waiting, which is why we will use SAFE as quickly as possible,” he added, confirming his preference for immediate and secure funding.
260 billion euros in gold reserves
This power struggle takes place in a tense political environment. President Nawrocki, supported by the conservative camp, vetoed the use of the European SAFE program advocated by the pro-European government of Prime Minister Donald Tusk. The Law and Justice Party (PiS) and nationalist President Karol Nawrocki believe that SAFE could become a new tool of pressure exerted by Brussels on Warsaw, thanks to a mechanism for controlling fund allocation.
The Polish Parliament approved a very extensive army modernization program in February, worth nearly 44 billion euros, based on European loans, which was strongly criticized by nationalist opposition. Donald Tusk shares the stance of his Finance Minister and opposes the use of gold reserves, preferring a strategy aligned with European mechanisms.
In the background, the question of gold has become central. Poland has been one of the world’s largest gold buyers in recent years and by far the largest recent European buyer. Its central bank purchased around 102 tons of gold in 2025, after already buying nearly 90 tons in 2024. It now holds about 550 tons of gold, worth 1.1 trillion zlotys, or 260 billion euros. A rapid accumulation, as the central bank now aims for a target of 700 tons, demonstrating the strategic importance placed on this asset.
For Andrzej Domański, this reserve strategy should not be circumvented. He points out that potential gains from the sale of gold could be neutralized by exchange rate fluctuations, especially since the central bank has recently recorded losses. In other words, relying on these revenues would build a defense policy on too unstable grounds.
Faced with these uncertainties, the government is exploring other options. In addition to SAFE, Warsaw is discussing a multilateral defense mechanism supported by the United Kingdom, the Netherlands, and Finland, among others. An option deemed “interesting” by the minister, who emphasizes: “My absolute priority right now is security.” A way to remind that, in this debate, the issue goes far beyond gold to touch on the country’s financial and strategic credibility.
