Europe increases military spending. Poland with a lower plan for 2027

According to the Rzeczpospolita, Lithuania and Estonia intend to allocate 5% of their GDP to defence in 2027. Poland plans to spend PLN 198 billion on this purpose. This amount is nominally lower by almost PLN 2 billion than the assumed expenditure for 2026. If in 2027 the Polish economy increases its value by about 4%, the share of defence spending in GDP will be little than a year earlier.

Deputy Prime Minister and Minister of Defence Władysław Kosiniak-Kamysz, referring to the situation of Poland, pointed out that the actual value of spending may be higher. This is to be affected, inter alia, by the financing of any purchases under the EU SAFE instrument, which will be subject to VAT exemption.

Europe is getting stronger

At the same time, all 3 Baltic States plan to defend at least 5% of GDP in 2027. Finland plans to increase the nominal value of its defence budget by around EUR 600 million, to EUR 7 billion. The Czech Republic assumes that spending will be maintained at 2% of GDP, while Slovakia and Hungary do not foresee a crucial increase in expenditure.

Germany is planning a much larger defence budget. Taking into account the funds from the peculiar fund, expenditure is expected to scope almost EUR 140 billion, which corresponds to more than 3% of GDP. ‘Rzeczpospolita’ indicates that this would be the highest level of German defence spending since the end of the Cold War.

However, final plans for defence backing by Sweden and Romania have not yet been presented.

Trump reaction

Earlier, US president Donald Trump had repeatedly welcomed the level of Polish defence spending and the share of these expenditures in GDP. He has late besides pointed out the greater engagement of NATO states in financing their own armed forces. According to his assessment, many countries of the Alliance are now effectively implementing the assumptions regarding the allocation of 5% of GDP for defence purposes.

Trump stressed that the United States inactive remained NATO's largest funding. In his opinion, the combined yearly defence spending of the Alliance states could in the close future exceed the level of $1 trillion.