UPDATE: Poland's Defence and Security Fund okayed by EU finance ministers
The EU finance ministers have approved amendments to Poland's National Recovery Programme (KPO), which envisages the establishment of a Defence and Security Fund worth nearly PLN 26 billion (EUR 6 billion).
"We've got it! The Council of the European Union have accepted the KPO revision. The Defence and Security Fund has formally and irreversibly become part of Poland's National Recovery Programme (KPO)," Deputy Minister of Funds and Regional Policy Jan Szyszko wrote on the X platform.
Szyszko added that Poland had been the first country in Europe to invest European funds in defence.
"The payout of EU funds exceeding EUR 6 billion, approximately PLN 26 billion, will be possible owing to the KPO revision, approved today," Poland's Finance Minister Andrzej Domanski told reporters on Friday.
Domanski, who chaired the Friday meeting as part of Poland's EU presidency, added that the funds should be transferred to Poland in the coming weeks. "I hope that still before the summer holidays," he said.
The approval, granted by the EU finance ministers on Friday, will pave the way for the payout of the third tranche of KPO funds for Poland. It also concludes the third revision of the KPO.
This KPO revision will enable the launch of the Defence and Security Fund, which will finance the construction of civil protection facilities, such as shelters, the development of Polish steelworks and defence companies, and the construction and modernisation of roads, railways, and airports, among other projects. Nearly PLN 26 billion (EUR 6 billion) will be moved from the part intended for the green transition of cities.
According to the Ministry of Funds, PLN 26 billion (EUR 6 billion) is to be transferred to Poland in August.
The Polish government decided to reallocate assets from the KPO to the Defence and Security Fund in April. The KPO, an EU initiative, aims to support member states, including Poland, in revitalising their economies post-Covid-19, providing financial assistance through non-repayable grants and favourable loans.
The KPO funds are to help Poland achieve its previously set goals faster, implement new investments, accelerate economic growth, and increase employment. Under the programme, Poland is set to receive a total of EUR 59.8 billion, including EUR 25.27 billion in non-repayable grants and EUR 34.54 billion in preferential loans. (PAP)
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