What about defence funding? Poland seeks partnership with the Baltic states

Defence spending is and will remain a priority, said Minister of Finance Andrzej Domański. In an interview with Bloomberg, he stated that, among other reasons, due to the high budget deficit (7.3% of GDP in 2025), the government is not giving up on finding additional funds for armaments — including from abroad.

One of the ministry’s ideas is based on regional cooperation with the Baltic states. On Friday in Vilnius, ministers from Poland, Lithuania, Latvia, and Estonia agreed to jointly seek greater EU assistance in supporting the defense industry. The group of countries also plans to cooperate in obtaining potential loans from outside the European Union.

“We are building a broad coalition because we need fresh money, new resources,” Minister Domański said during his recent visit to Lithuania, adding that the new financing tools will reduce borrowing costs.

Cooperation with the Baltic countries on joint loans is not the only idea being pursued by Poland’s Ministry of Finance. According to the Financial Times, Warsaw has also expressed interest in joining the Multilateral Defence Mechanism (MDM). The initiative, led by the United Kingdom, the Netherlands, and Finland, involves issuing debt backed by member state guarantees and allocating the funds for joint defense procurements, which is expected to lower financing costs and create economies of scale.