Finance Minister Andrzej Domanski (PO, EPP) said that the Polish government is considering issuing defense bonds because, contrary to initial expectations, defense spending will not be exempted from the EU’s excess deficit procedure.
The European Commission rejected Poland’s request to exclude defense spending from the excessive deficit procedure, which Domanski had been pushing for for months.
Although such an exemption would have benefited several EU member states, Poland stood to benefit most as it currently faces significant budgetary pressures due to increased defense spending.
“It has been confirmed that this will not be ruled out,” Domansky announced during a visit to Washington.
According to the minister, it seems relatively likely that at least part of Poland’s defense spending will be excluded from the European Union’s excess deficit procedure.
In the face of Brussels’ veto, Poland may issue defense bonds, Domanski announced, adding that Poland’s GDP is expected to grow by 3.9% in 2025.
On June 19, the European Commission proposed applying excessive fiscal measures to Poland, France, Italy, Belgium, Hungary, Malta and Slovakia, citing a lack of corrective measures.
This procedure is triggered when an EU member state’s budget deficit exceeds 3% of GDP or public debt exceeds 60% of GDP. The aim is to ensure that government debt remains at a low or sustainable level.
Poland to further increase spending
“Defense spending is a priority for Poland. It will increase next year both nominally and in relation to GDP,” Domanski wrote in X magazine last summer.
Poland allocated 4.1% of its GDP to defense in 2024, totaling around 160 billion zlotys (34.78 billion euros). In 2025, Warsaw plans to increase this budget to 4.7% of GDP, or approximately PLN 186 billion (EUR 40.43 billion).
With this, Poland aims to maintain its leading position within NATO in terms of defense spending as a percentage of GDP, well above the alliance’s minimum requirement of 2%.
Polish Defense Minister Wladysław Kosiniak-Kamisz (PSL, EPP) said earlier that Poland and Lithuania also hope that the EU will contribute financially to the construction of the so-called Eastern Shield on the Lithuanian Line and the Baltic Sea Line. He said there was.
He argued that the military industry should be a priority for the EU and that countries should jointly purchase equipment.
(Aleksandra Krzysztošek | Euractiv.pl)
