Poland's EU Presidency to Prioritize Joint Defence Financing Amid Rising Tensions

During Poland's EU presidency, joint defence financing will be prioritized due to concerns like the Ukraine war and potential NATO skepticism. The European Commission estimates defence costs will exceed 500 billion euros over a decade. Discussions continue on potential financing models and cooperation strategies.

Poland is set to make joint defence financing a central focus during its EU presidency, amidst growing anxieties surrounding the Ukraine conflict and the potential return of NATO-sceptic Donald Trump to the White House, stated Finance Minister Andrzej Domanski.

As tensions rise, European countries, including Germany, are increasing defence expenditures following Russia's invasion of Ukraine and Trump's past threats about reducing support. The European Commission forecasts EU defence costs to exceed 500 billion euros in the coming decade, prompting the need for collaborative efforts.

Within this context, EU finance ministers plan to explore possible financing models in April. While discussions are at a nascent stage, debates continue on whether a joint borrowing approach or a special purpose vehicle akin to the European Stability Mechanism would better serve EU's defence financing needs.

(With inputs from agencies.)