0:27 20 March 2025
Poland secures EU defense loans
Poland will have access to nearly PLN 100 billion in low-interest loans for its defense industry, Deputy Finance Minister Paweł Karbownik announced on X. These funds are part of the EU’s new €150 billion armament initiative outlined in a white paper released Wednesday.
The EU aims to bolster its own defense industry, requiring that at least 65% of expenditures stay within Europe—limiting purchases from U.S. or South Korean suppliers. The "East Shield" program, crucial for strengthening Poland’s eastern and northern borders, is set to begin this year, covering Pomerania, Warmia-Masuria, Lublin, Podlaskie, and Subcarpathia.
The proposal also includes easing budget rules for defense spending and allowing Ukraine to apply for funds jointly with an EU member. The plan will be discussed at Thursday’s EU summit. Loans will be available until 2030, with VAT exemptions as an incentive for joint procurement.
