Poland Proposes Record Defence Budget of 187 Billion Zlotys for 2025

Poland’s Ambitious 2025 Defence Budget Proposal

In a bid to bolster national security amid the ongoing conflict in Ukraine, Polish Prime Minister Donald Tusk has unveiled a landmark budget proposal for 2025 that prioritizes record spending on defence. The proposed budget allocates a staggering 187 billion zlotys (approximately €43.6 billion) towards military expenditures, reflecting the urgent need to address the heightened threats posed by the war in Ukraine, which borders the EU’s external frontiers.

During a recent press conference, Tusk characterized the budget as “generous”, emphasizing its role in fostering economic growth for Poland, a nation that shares borders with both conflict-ridden Ukraine and the strategically significant Russian enclave of Kaliningrad. He stated, “Inflation is under control. We are experiencing record economic growth. We have seen a real increase in the minimum wage, alongside the initiation of critical investments, particularly in energy and rail infrastructure.”

Furthermore, Tusk remarked on the inevitable transition towards increased defence spending, saying, “This is a significant undertaking, but there is no turning back from this path.” Finance Minister Andrzej Domański noted that the proposed defence budget would constitute 4.7% of Poland’s gross domestic product (GDP), up from 4.2% in the current year. This positions Poland as a leading nation in both NATO and the European Union regarding military expenditure.

In light of its ongoing support for Ukraine, Poland has been making substantial investments in military equipment, including fighter jets, tanks, and missile defence systems, sourced from allies such as the United States and South Korea. Moreover, the budget earmarks about 4.6 billion zlotys (around €1.07 billion) for the construction of Poland’s first nuclear power plant, which is anticipated to become operational in northern Poland by 2035. This move is part of Poland’s strategic initiative to reduce its reliance on energy imports from Russia, particularly in the realms of gas and oil.

Looking ahead, Poland’s economic growth is projected to reach 3.9% in the upcoming year, a rise from 3.1% in 2024. Domański has indicated an expected inflation rate of 5%, an increase from the approximately 4% rate observed this year, with a forecasted budget deficit reaching 289 billion zlotys (around €69.5 billion).

The proposed budget plan will undergo discussions with trade unions and requires approval from both Poland’s parliament and President Andrzej Duda before it can be finalized.