Polish deputy finance minister: At end of June Poland had financed about 75% of its 2025 borrowing needs

Polish deputy finance minister: At end of June Poland had financed about 75% of its 2025 borrowing needs

Poland has made significant progress in financing its 2025 borrowing needs, with the deputy finance minister reporting that about 75% of the country's borrowing requirements have been met by the end of June. This milestone comes amidst a backdrop of increased defense spending and economic challenges faced by the country and its European Union (EU) counterparts.

The Polish presidency, which concluded its term in June, delivered notable achievements in the field of external security and defense funding. The adoption of the Security Action For Europe (SAFE) Instrument, a €150 billion multiannual EU-backed loan program, was a key success. This program allows for urgent, large-scale public investments in the European defense industry, with a focus on areas such as air and missile defense, cybersecurity, and military mobility [1].

The Polish presidency also played a crucial role in securing additional flexibility in EU fiscal rules, enabling higher defense spending. Sixteen countries, including Poland, have already implemented these provisions, which are aimed at addressing the mounting fiscal impact of NATO’s revised defense spending target [3].

The EU has also recognized the importance of Poland's Eastern Shield project, a flagship initiative aimed at strengthening NATO's eastern flank. The project, implemented in Poland, has been included in the White Paper for European Defense as a component of the EU’s critical capabilities [1].

Poland's efforts in securing financial support for defense initiatives have been complemented by its commitment to economic stability. The Polish Statistical Office reported that inflation for June stood at 4.00%, the same as in May, indicating a stable economic environment [2].

However, the increased defense spending targets set by NATO pose significant fiscal challenges for EU member states. Scope Ratings warned that meeting the 3.5% of GDP defense expenditure benchmark would require substantial budgetary adjustments, potentially widening budget deficits and increasing public debt [3].

As Poland continues to finance its borrowing needs, it will be crucial to monitor the fiscal impact of these initiatives and ensure that they are sustainable in the long term. The deputy finance minister's statement underscores the country's commitment to addressing these challenges while maintaining economic stability.

References:
[1] https://polish-presidency.consilium.europa.eu/en/news/achievemements-in-field-of-external-security-defence-funding/
[2] https://www.tradingview.com/news/reuters.com,2025:newsml_L8N3SX05A:0-poland-factors-to-watch-june-30/
[3] https://delano.lu/article/natos-3-5-defence-hike-to-rattle-eu-budgets-ratings-scope