Poland signs €44B EU defence loan to boost military

Poland on Friday became the first country to sign a loan agreement with the European Commission aimed at funding the modernisation of its armed forces and defence industry, under which it will receive nearly €44 billion ($52 billion).

Prime Minister Donald Tusk described the agreement as a “watershed moment in the history of both Poland and the European Union” during a signing ceremony, News.Az reports, citing AFP.

“Poland will be safer in these difficult and highly risky times,” he added.

The funding will go to Poland, the most populous country on NATO’s eastern flank and the alliance’s highest defence spender relative to GDP, allocating 4.8% of its economic output to military spending.

The loan package is part of the European Union’s Security Action for Europe (SAFE) initiative, which provides around €150 billion in preferential loans. The programme is designed to finance joint defence projects, including the purchase of weapons and ammunition, as well as the development of critical infrastructure.

With €43.7 billion allocated, Poland is by far the largest beneficiary of the scheme. The initiative was created to strengthen Europe’s defence capabilities amid concerns over Russia’s military threat and the possibility of reduced US engagement in European security.

“This is also the day when Europe… is showing that it has learned a lesson from history and that it is ready… to shoulder a much greater responsibility for our security,” Tusk said.

The agreement was formally signed by Poland’s finance and defence ministers, alongside EU budget commissioner Piotr Serafin and EU defence commissioner Andrius Kubilius.

Poland, sharing borders with Russia, Belarus, and Ukraine, has been actively developing elements of the EU and NATO’s so-called “eastern shield” as part of its broader security strategy.

News.Az 

By Nijat Babayev