Poland ramps up defence spending to boost security and domestic industry
Poland has more than doubled its defence budget to 4.8% of GDP, aiming to strengthen NATO’s eastern flank and spur economic growth through domestic arms production.
Poland’s defence budget has accelerated from 2.2% to 4.8% of GDP in five years, amounting to $53 billion and placing the country behind Germany, France and Italy in the EU. The increase is driven by concerns over Russian aggression and a desire to develop a home-grown arms industry, exemplified by the new MBDA facility in Czosnów and collaborations with British firms Babcock and BAE Systems. Deputy foreign minister Marcin Bosacki links the military buildup to broader economic benefits, while critics warn that the spending fuels the largest projected EU fiscal deficit at 7.1% of GDP and has already prompted a Moody’s downgrade.
Domestic politics are heating up, with President Karol Nawrocki and the right-wing Peace and Justice party challenging Prime Minister Donald Tusk’s access to €44 billion of EU defence loans. The government plans to allocate most of the Safe programme funds to state-owned Polska Grupa Zbrojeniowa, but foreign suppliers still dominate key purchases such as Patriot missiles and F-35 jets. Amid these moves, Polish firms like Advanced Protection Systems are expanding to meet rising demand for anti-drone systems, reflecting the broader ambition to turn defence spending into a growth engine.
Why it matters
Poland’s defence surge reshapes its economy, fiscal health and political landscape while influencing NATO’s eastern security.
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