Poland signs 44-bn-euro EU defence loan deal to modernise military / Photo: © AFP
Poland signs 44-bn-euro EU defence loan deal to modernise military
Poland on Friday became the first country to sign a loan agreement with the European Commission to fund the modernisation of its military and arms industry, under which it will receive nearly 44 billion euros ($52 billion).
"This is a watershed moment in the history of both Poland and the European Union," Prime Minister Donald Tusk said at a ceremony for the signing of the agreement.
"Poland will be safer in these difficult and highly risky times," he added.
The billions in funding will go to the most populated country on NATO's eastern Flank, and the alliance's largest spender in relative terms, allocating 4.8 percent of its GDP to defence.
The Security Action For Europe (SAFE) scheme makes some 150 billion euros available in the form of preferential loans to finance joint projects in defence, the purchase of weapons or ammunition, and for the development of critical infrastructure.
Poland, which is receiving 43.7 billion euros, is by far the greatest beneficiary of the programme, which was developed for European countries seeking to reinvigorate their defence industry to face the threat from Russia and risk of US disengagement.
"This is also the day when Europe ... is showing that it has learned a lesson from history and that it is ready ... to shoulder a much greater responsibility for our security," Tusk added.
The agreement was signed by the Polish finance and defence ministers, as well as EU budget commissioner Piotr Serafin and defence commissioner Andrius Kubilius.
W.Phillips--TNT
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