Poland signs $44 billion defense deal with EU

Poland became the first country on Friday to sign a pre-financing agreement with the European Commission to modernize its army and arms industry, receiving over 44 billion euros.

“This is a pivotal moment in the history of Poland and the European Union,” said Polish Prime Minister Donald Tusk at the agreement signing.

“Poland will be safer in these difficult and high-risk times,” he added.

As the most populous country on NATO’s eastern flank, Poland is the alliance’s highest spender on defense as a percentage of its GDP, with 4.8% devoted to defense.

The EU’s Security Action For Europe (SAFE) program, established in 2025, makes 150 billion euros available in low-interest loans to fund joint defense projects, arms and ammunition purchases, and critical infrastructure development.

With a 43.7 billion euro loan, Poland is the main beneficiary of the program, aimed at strengthening the European defense industry against the Russian threat and potential U.S. disengagement.

“Today is also the day that Europe shows it is ready to take on much greater responsibility for our security,” commented Donald Tusk.

AFP