Poland is set to break its previous defense spending record of 159 billion zlotys (€37 billion) with a groundbreaking proposal for the 2025 budget. Prime Minister Donald Tusk has revealed plans for an unprecedented allocation of 187 billion zlotys (€43.6 billion) towards national defense, a response to the escalated dangers presented by Russia’s ongoing war in Ukraine, which poses a significant threat to the external borders of the EU.
The prime minister characterized this budget proposal as “generous,” emphasizing that it not only strengthens national defense but also serves as a catalyst for further economic growth. Poland shares borders with both war-torn Ukraine and the Russian enclave of Kaliningrad, making this funding even more critical.
Speaking at a recent news conference, Tusk noted, “We are keeping inflation in check, witnessing record economic growth, implementing a real increase in the minimum wage, and initiating vital investments, especially in energy and rail infrastructure.” He also highlighted, “The great effort of increasing defense spending is a commitment that we cannot backtrack on.”
Finance Minister Andrzej Domański underscored that this defense budget proposal would represent 4.7% of the country’s gross domestic product (GDP), a rise from 4.2% this year, firmly establishing Poland as a leader in both NATO and the European Union.
Amidst its unwavering support for Ukraine in the face of Russia’s full-scale invasion, Warsaw is making significant purchases of military equipment, which include advanced fighter jets, tanks, and missile defense systems from the United States and South Korea. The commitment to defense also involves an investment of approximately 4.6 billion zlotys (€1.07 billion) towards the construction of Poland’s inaugural nuclear power plant, scheduled to begin operations in northern Poland by 2035.
In recent years, Poland has been proactive in reducing its dependency on Russian energy imports, specifically gas and oil. Ample expectations surround Poland’s economic growth, projected at 3.9% for the coming year, a slight increase from 3.1% in 2024. However, Domański anticipates a rise in inflation, estimating it at 5%, up from around 4% this year, with the deficit expected to hit 289 billion zlotys (€69.5 billion).
The proposed budget will undergo deliberation with trade unions and is subject to approval from Poland’s parliament and President Andrzej Duda.
Photo credit & article inspired by: Euronews
