Selling Poland’s gold reserves to buy arms is a ‘mirage’, minister warns

{"text":[[{"start":10.5,"text":"Poland’s finance minister has dismissed as “a mirage” the president’s plan to sell central bank gold reserves to fund the military instead of tapping cheap EU loans intended for the same purpose."}],[{"start":21.8,"text":"Andrzej Domański said Warsaw would seek to access the EU’s €150bn Security Action for Europe defence fund despite a presidential veto even if it meant reduced “flexibility” in using the loans for non-military investment."}],[{"start":36.75,"text":"He pushed back against suggestions by President Karol Nawrocki and central bank governor Adam Glapiński to use the proceeds of gold sales as an alternative way to finance military expenditure."}],[{"start":47.95,"text":"“I refuse to accept the [idea of] modernising the Polish army based on the mirage of future profits of the central bank — I refuse,” Dománski told the FT during a trip to Washington."}],[{"start":59.95,"text":"While it was for the central bank to decide how to use its reserves, the institution will not have a final picture of its annual earnings until the spring of 2027, he said."}],[{"start":72.4,"text":"“We need resources to modernise the Polish army now. I see no point in waiting, and this is why we will use Safe as quickly as possible.”"}],[{"start":null,"text":"

"}],[{"start":81.9,"text":"Last year Poland was among the biggest central bank purchasers of gold, closing 2025 with about 550 tonnes of the metal, worth more than one-quarter of its total reserves. In January, Glapiński set a new target for the National Bank of Poland to own 700 tonnes."}],[{"start":100.30000000000001,"text":"Two months later, Glapiński sided with Nawrocki in his feud with the pro-EU government of Prime Minister Donald Tusk over Safe. Glapiński and Nawrocki are nominees of the rightwing opposition Law and Justice party."}],[{"start":113.80000000000001,"text":"While Nawrocki vetoed the government’s Safe bill, Glapiński suggested Polish gold could be sold and perhaps later repurchased, as an alternative to the EU loans of the Safe programme."}],[{"start":127.4,"text":"However, Domański said any gains on sales of reserves could be offset by foreign-exchange movements during the financial year and the central bank had recently been making losses. "}],[{"start":138.25,"text":"Tusk has opposed the plan to use gold reserves. His government is in talks with the European Commission about channelling Safe loans into an existing Polish army fund, which has some spending restrictions but does not require presidential approval."}],[{"start":151.35,"text":"Domański said his team is also in talks over another international defence funding proposal, called the multilateral defence mechanism."}],[{"start":160.04999999999998,"text":"Championed by countries including the UK, Netherlands and Finland, the MDM would issue debt backed by guarantees from its members and use it for defence procurement, achieving economies of scale and easing member countries’ funding costs."}],[{"start":174.89999999999998,"text":"The proposal, he said, might be an “interesting option” for Poland. “My top priority right now is Safe, but my team is also participating in MDM.”"}],[{"start":184.74999999999997,"text":"Domański and Glapiński also used their trip to Washington for the IMF spring meeting to promote Poland’s bid for membership of the G20. The US, which holds the G20 presidency, has invited Poland to attend December’s meeting of the group in Miami as a guest nation."}],[{"start":209.89999999999998,"text":""}]],"url":"https://audio.ftcn.net.cn/album/a_1776750602_1873.mp3"}