Poland and the European Union have signed an agreement to unlock 43.7 billion euros ($51.4 billion) in soft loans for the defense sector. The money will allow the country to secure a record number of contracts with its own arms manufacturers and strengthen security in the region. This was reported by Bloomberg.
Polish Prime Minister Donald Tusk said during a ceremony in Warsaw on May 8 that the country would become significantly safer thanks to these investments. According to him, the bulk of the European funding will be directed directly to Polish defense enterprises.
The Polish Ministry of Defense plans to conclude 40 new agreements for the supply of military equipment this month. The funding will be used to purchase armored vehicles, aircraft and drones, as well as to develop cybersecurity systems.
The largest Polish companies, including PGZ SA and WB Electronics, expect a sharp increase in production due to these orders.
Poland became the main recipient of funds under the Security Action for Europe program, receiving almost a third of the EU’s general fund.
European Union loans turned out to be cheaper than domestic loans, which will allow the country to spend less on debt servicing.
