28 August 2024

Poland to increase defence spending in 2025 to record high

28 August 2024

Polish Prime Minister Donald Tusk has said the 2025 state budget will include record-high spending on defence.

Mr Tusk presented the main points of next year’s budget, which he described as “generous” and supporting further economic growth.

He said some 186 billion zlotys (£36.6 billion) will be spent next year on increasing the defence of the nation, which borders war-torn Ukraine, amid high security concerns.

“It is a great effort, but there is no turning back from it,” Mr Tusk told a news conference.

Finance minister Andrzej Domanski said that the defence spending proposal would constitute 4.7% of gross domestic product, compared to 4.2% this year, which already makes Poland a leader in Nato and in the European Union.

The current proposal would break the previous defence spending record of 159 billion zlotys (£31.1 billion) in the 2024 budget.

Mr Tusk said it will be a budget of “construction and force” and will contribute to reinforcing Poland’s security, which also includes the country’s sensitive energy security.

Poland, which supports Ukraine’s struggle against Russia’s full-scale invasion, is making large purchases of military equipment, including fighters jets, tanks and missile defence systems from the US and South Korea.

About 4.6 billion zlotys (£902 million) has also been earmarked toward the construction of Poland’s first nuclear plant, which is expected to be operational in northern Poland in 2035.

Mr Tusk said work to prepare the necessary infrastructure was about to begin.

Poland has been taking strides in recent years to cut its dependence on energy sources coming from Russia, such as gas and oil.

Poland’s economic growth is expected to be 3.9% next year, compared to 3.1% in 2024.

An inflation rate of 5% is expected, up from some 4% this year. The deficit will reach 289 billion zlotys (£56.7 billion) Mr Domanski said.

The budget plan will be debated with the trade unions and needs approval from Poland’s legislators as well as President Andrzej Duda.

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