Speaking after a meeting of EU defense ministers, Kosiniak-Kamysz said the low-interest loan fund, due to open in June, could “dramatically strengthen” Poland’s arms industry by co-financing domestically produced weaponry such as the Piorun man-portable air-defense missile system, the Krab self-propelled howitzer and the Borsuk infantry fighting vehicle.
“Borsuk will be one of our flagship products, but we will also promote the Baobab remote-minelaying vehicle, the long-awaited Orka-class submarines, Jelcz military trucks and, of course, Piorun – already a recognized Polish brand,” he told reporters.
The facility is designed to support projects involving at least two member states, yet the final rules allow funding for purely national programs, a provision Warsaw had pushed for.
“Since negotiations began, the conditions for Polish industry have changed diametrically in our favor,” the minister said.
Poland has embarked on one of Europe’s largest rearmament drives, pledging to lift defense spending to about 5 percent of GDP and signing multi-billion-euro contracts for US, South Korean and domestic weaponry as it modernizes forces bordering Russia and Belarus.
Kosiniak-Kamysz added that Warsaw would coordinate with other EU partners to maximize joint orders but would also use the fund to accelerate projects already underway at state-controlled producer PGZ and private suppliers.
EU officials say the loan scheme—part of a broader plan to boost Europe’s defense output amid Russia’s ongoing invasion of Ukraine—will be backed by guarantees from the bloc’s budget and the European Investment Bank, with disbursements starting in the second half of 2025.
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Source: PAP, IAR