Polish officials debate defense spending amid budget cuts and VAT-free EU loans
Vice-premier Władysław Kosiniak-Kamysz said the defense budget will be lower in nominal terms but will benefit from VAT-free purchases financed by an EU SAFE loan, while President Karol Nawrocki called for the best equipment for Polish pilots.
At the Transport Aviation Base Day event, President Karol Nawrocki declared that Polish pilots should have access to the finest equipment available worldwide and highlighted the nation's progress toward a larger defence-GDP proportion. Vice-premier and defence minister Władysław Kosiniak-Kamysz responded to questions about the smaller nominal defence budget by pointing out that purchases covered by the EU SAFE loan will be exempt from VAT, effectively increasing real spending.
Meanwhile, PiS parliamentary club leader Mariusz Błaszczak criticized the upcoming 2027 budget, noting that total defence expenditures will fall from the previous year and that their share of GDP will decline from 4.81% to 4.51%, marking the first nominal decrease since one outlet financing model began in 2022. He also highlighted a cut of nearly 5.9 billion zł in allocations from the Support Fund for the Armed Forces, dropping from 72.2 billion zł in 2026 to 66.3 billion zł in 2027. The discussion underscores tensions between fiscal constraints and the push for modernising Poland's military capabilities.
Why it matters
It shows how Poland aims to modernise its military despite a shrinking defence budget and reliance on EU financing.
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