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EU clears Poland to divert €6.1 bn recovery funds to defense

20.06.2025 20:00
EU finance ministers on Friday approved Poland’s plan to shift PLN 26 billion (about €6.1 billion) from its pandemic recovery program into a new Security and Defense Fund, making Poland the bloc’s first member to channel recovery cash into rearmament.
Polish soldiers.
Polish soldiers.Photo: PAP/Marcin Obara

The decision, taken at an Ecofin meeting in Luxembourg, completes the third revision of Poland’s €59 billion National Recovery Plan (KPO). Deputy Funds Minister Jan Szyszko, Warsaw’s chief negotiator, said the move makes Poland “the first country in Europe to invest European funds in security.”

Finance Minister Andrzej Domański told reporters Poland expects the €6.1 billion “within weeks, hopefully before the summer break”.

The transfer will extend the KPO’s spending deadline beyond mid-2026 because funds lodged in the new vehicle will count as disbursed.

Defense Minister Władysław Kosiniak-Kamysz said the cash will finance dual-use projects such as arms-factory upgrades, energy-grid reinforcement, civil-defense shelters and strategic transport links.

Warsaw sought the change after Russia’s invasion of Ukraine highlighted gaps in Europe’s arsenal. EU recovery money was originally earmarked mainly for green and digital projects.

Development Minister Katarzyna Pełczyńska-Nałęcz cautioned that ministries have already flagged defense needs totaling more than PLN 90 billion (about €21 billion).

“KPO money is only a start, but it is a crucial step”, she said, adding that the first projects could launch in 2026.

(1 EUR = 4,27 PLN)

(jh)

Source: Polskie Radio 24