6:29 19 March 2026
Funding defense strategy
Economist Ludwik Dudek warns that Poland lacks a comprehensive long-term strategy for financing defense, despite proposals to raise military spending to 5% of GDP and create new off-budget funds at Bank Gospodarstwa Krajowego. Measures under the SAFE Act and the proposed Polish Defence Investment Fund risk expanding what critics call a “parallel budget,” weakening transparency and parliamentary oversight.
Dudek argues that before discussing debt or financial instruments, Poland needs a detailed master plan covering procurement, maintenance of armed forces and soldiers’ pensions, while balancing spending on healthcare and social programs.
He contrasts Greece—whose heavy defense spending and borrowing led to crisis—with South Korea, which built a domestic defense industry while maintaining fiscal discipline.
According to Dudek, financing priorities should follow a clear hierarchy: cost savings, revenue measures, international partnerships and only then debt, while foreign reserves should remain a last-resort buffer to protect financial stability and the credibility of the zloty.
Source: biznes.pap.pl
