Poland signs first loan deal as part of EU defence spending push

Poland has signed its loan agreement ​under a European Union defence financing ​programme, securing 43.7 billion euros ‌to strengthen ​its military as the bloc steps up efforts to boost security amid heightened geopolitical risks. The deal makes Poland the ‌first EU country to tap the Security Action for Europe (SAFE) initiative, which is aimed at boosting the EU's defence capabilities and buying weaponry to counter potential threats from Russia ‌or Belarus.

"This is a turning point in the history of Poland and ‌the European Union," Prime Minister Donald Tusk said during the signing ceremony on Friday. "...This is a gigantic sum that will be invested directly in Polish security, the Polish arms industry, Polish companies that cooperate with ⁠the ​arms industry, and ⁠in our technological capabilities."

Poland's government pushed ahead with the SAFE programme despite a veto by the country's ⁠nationalist president, highlighting a deepening dispute over debt and the role Brussels should play in the security ​of the politically divided country. Poland is the biggest beneficiary of the ⁠150-billion-euro SAFE initiative, but the veto meant the government had to fall back on an existing armed forces ⁠fund, ​preventing it from releasing about 7 billion zlotys previously earmarked for the border guard and police.

Poland has emerged as Europe's top defence spender by share of national ⁠wealth as measured by gross domestic product, and plans to spend 4.8% of GDP ⁠on defence in ⁠2026. The country has placed large orders for tanks, artillery and air defence systems, while also seeking to expand domestic production in ‌partnership with ‌foreign manufacturers.

(This story has not been edited by Devdiscourse staff and is auto-generated from a syndicated feed.)