Poland is significantly increasing its defence investment, with spending as a share of its gross domestic product (GDP) more than doubling from 2.2% to 4.8% this year. This amounts to $53bn (£39.8bn) in cash terms, making it the fourth-highest defence budget in the EU.
This rapid expansion, described as one of the fastest rates in the developed world, is a response to Russian aggression and US disengagement. A new hi-tech weapons facility, which was a cornfield two years ago, opened this month in Czosnów, north of Warsaw, reflecting this drive.
Marcin Bosacki, Poland’s deputy foreign minister, stated that Russian aggression is heavily influencing the government’s plans for economic development and cooperation with EU and Nato allies. He believes strengthening economic ties in pursuit of military readiness would deter further Russian provocations.
However, this defence boom is not without economic implications. Poland is projected to have the largest fiscal deficit in the EU next year, at 7.1% of GDP. Moody’s recently downgraded the country’s long-term sovereign credit rating, citing a lack of willingness to rebuild fiscal buffers.
Despite securing €44bn (£38bn) in defence investment loans through the EU’s Safe programme, political divisions have emerged. President Karol Nawrocki, backed by the rightwing Peace and Justice party, reportedly attempted to block the pro-EU government from accessing these funds.