20:15 6 May 2026
Experts: rapid increase in defense spending, not benefiting domestic industry, leads to financial crisis
Poland and the European Commission are set to sign a loan agreement under the SAFE defense financing program, providing Poland with about PLN 190 bln for military investments. The first tranche, worth roughly EUR 6.5 bln, could arrive as early as May. Industry representatives stressed that the main challenge is no longer funding availability but the speed of project execution and procurement.
Polska Grupa Zbrojeniowa (PGZ) said it is racing to sign contracts with domestic suppliers and expand production capacity, including for anti-drone systems and military vehicles. However, executives acknowledged that Poland still depends on foreign suppliers for some components. Experts also warned about high defense spending costs, insufficient long-term procurement predictability, and growing pressure on banks financing both defense and energy transformation projects.
(pb.pl)
