Poland Proposes Redirecting Unused EU Recovery Funds to Defense Projects

6 May, 2024 Minister of Defense of Poland Wladyslaw Kosiniak-Kamysz at the Defense24 Days conference, May 6, 2024. Polish officials have proposed that more than EUR400 billion from the EU's emergency bailout fund meant for helping member states recover from the pandemic should be put towards building the defense industry to help Ukraine. Two top Polish officials stated this during the Defence24 Days defense conference.

The Minister of Foreign Affairs and the Deputy Prime Minister of Poland believe that the European Union should allocate the remaining funds in the stabilization fund to the development of the military-industrial complex. "All unused national recovery plan funds should be shifted towards defense projects," Deputy Prime Minister and Defense Minister Wladyslaw Kosiniak Kamysz said. The Head of the Polish National Security Bureau, Jacek Siewiera, noted during the conference that insufficient industrial capabilities did not allow Europe to fulfill its promise to supply Ukraine with one million 155 mm shells.

He warned that disputes over the solution and who should benefit most from joint projects could lead the EU "into a permanent deadlock."

Production line of 155mm artillery ammunition at the facilities of the Rheinmetall plant, July 6, 2023. Photo credits: Fabian Bimmer

Repurposing the unused EU recovery funds

The fund, which was created to help EU countries recover from the COVID pandemic, currently totals about EUR422 billion. According to Politico, the EU is discussing the possibility of using these funds to develop its military-industrial complex.

The publication points out, based on its sources, that the Fund can provide cheap loans for the purchase of weapons or investments in the European defense industry.

In addition, it can be used to rebuild Ukraine.

However, in order to change the intended use, the consent of the EU finance ministers is required.