Poland to direct EU COVID recovery funds to defense, security

WARSAW

The Polish government said Wednesday it plans to redirect about €7 billion ($7.5 billion) from its share of the EU’s post-coronavirus pandemic recovery funds toward defense and security spending.

As the US shifts from providing a security umbrella for Europe, Poland has moved quickly to lead alternatives.

Poland has already rapidly raised its defense spending, which in 2025 will reach 4.7% of GDP, the highest in NATO.

“We are the first in Europe to initiate this project of crucial importance … as part of the KPO (National Recovery Plan),” Prime Minister Donald Tusk said at a Cabinet meeting in Warsaw. “Every decision of this kind concerning modernization of the Polish army, defense industry, strengthening of the border, puts off the danger of war and is an act for peace.”

It would make Poland the first member state to place its share of the EU’s post-pandemic Recovery and Resilience Facility (RRF) on defense and security.

The money would go toward the Security and Defense Fund (FBiO), used to finance infrastructure and sectors related to dual-use (military and civilian) products and technologies, infrastructure necessary to protect the population and other critical infrastructure, security research and development, modernization of defense and security sector companies and cybersecurity.

Funds will be provided in the form of low-interest loans or partially redeemable equity investments. An addendum to Poland’s KPO, approved Jan. 27, will be revised to allow some of the EU funds to be redirected to the FBiO.

The move will require the approval of the European Commission.