Poland to increase defense spending to 4.7% of GDP, joining top NATO spenders

Poland’s ruling coalition leaders have agreed to significantly boost defense spending to at least 4.7% of gross domestic product (GDP) as part of the draft budget for the upcoming year, according to reports by private broadcaster RMF FM.

The proposed increase, set to be discussed in a special Council of Ministers meeting on Wednesday, marks a substantial rise from this year’s allocation of 4.1% and positions Poland as the leading NATO member state in terms of defense expenditure.

Potential budget deficit and economic impact on Poland

If approved, Poland’s defense budget would amount to approximately 190 billion Polish zloty ($49 billion), a dramatic increase that could place Poland ahead of current top NATO spenders, including Estonia, the U.S., Latvia, and Greece.

This would be a significant shift for Poland, which, like many other countries in the region, previously struggled to meet the 2% GDP defense spending requirement set by NATO.

While the proposed defense budget underscores Poland’s commitment to strengthen its national security, it may also strain the national treasury. Reports suggest that the increase in military expenditure could contribute to a budget deficit estimated at 200 billion Polish zlotys.

The Polish government is reportedly considering various cost-saving measures to address this potential shortfall, including the possible elimination of credit holidays and energy bill subsidies.

NATO’s defense spending benchmark

Currently, only five NATO member states allocate more than 3% of their GDP to defense, with two-thirds of members meeting the 2% benchmark.

If Poland’s proposed budget is enacted, it will not only surpass this threshold but also set a new standard within the alliance.