Polish KPO revised. There is green light for defense expenses

The EU Council accepted the KPO search, including the establishment of the Security and Defense Fund; Poland is the first country of the community to invest in security from EU money – Jan Szyszko wrote to X deputy head of the Ministry of Finance. “Safety above all” – commented the head of the Ministry of Finance Andrzej Domański.

“There is! The Council of the European Union has just accepted the KPO revision. The Security and Defense Fund formally and irreversibly has become part of the Polish national reconstruction plan! Poland The first country in Europe that will invest European funds in security!” – wrote on Friday the deputy minister of regional funds and policy and the main government negotiator for the revision of KPO Jan Szyszko on Platform X.

Andrzej Domański, Minister of Finance, also referred to the approval of the KPO revision by the EU Council. He noted that consent to the change of KPO is the Friday decision of the Ecinic Council (Council for Economic and Financial Affairs – PAP), which under the leadership of Poland meeting in Luxembourg. “Security primarily. An additional PLN 26 billion will be allocated to the Special Defense and Security Fund within the KPO” – he wrote.

This is the third revision of the Polish national reconstruction plan; It was approved by the European Commission at the end of May this year. According to the Minister of Funds and Regional Policy, Katarzyna Pełczyńska-Nałęcz, the EC agreed to all changes in the KPO, which Poland postulated. She noted that this is the largest revision of the Polish KPO.

Thanks to changes in the KPO, it will be possible to create within it as part of the Security and Defense Fund (FBIO) with a budget of approx. PLN 25 billion – including for the construction of civil protection infrastructure, i.e. shelters, water and communication connections, expansion of Polish steel mills and arms industry, as well as the construction and renovation of double use infrastructure – roads, tracks, landing lines and airports.

In addition, a guarantee fund is to be created, thanks to which small and medium -sized companies will be able to receive loans for investments, which they could not get in market conditions. Over PLN 670 million collateral from KPO funds will be allocated to guarantees, which are to translate into PLN 10 billion in loans for companies. The revision also includes a reform strengthening the National Labor Inspectorate (PIP), which is to gain tools to enforce employee rights. The next points are the introduction of co -financing for the exchange of tachographs for small companies with below 15 cars and a double increase in the number of insulated schools with funding from KPO.

According to the information provided by Pełczyńska-Nałęcz in May, immediately after receiving funds from the KPO (which should happen in August or September) the fourth KPO revision will begin. Its purpose will be to change planned investments that may not be implemented on time.

The national plan for reconstruction and increased immunity (KPO) is to strengthen the Polish economy; It consists of 57 investments and 54 reforms. It provides for Poland EUR 59.8 billion, including EUR 25.27 billion in the form of a subsidy and EUR 34.54 billion in the form of preferential loans. Poland has received PLN 67 billion so far.

Domański: Another transfer within a few weeks

The head of the Ministry of Finance Andrzej Domański announced that thanks to the revision, further funds from KPO for over EUR 6 billion should reach us in the coming weeks.

“Thanks to the KPO revision adopted today, it will be possible to pay funds for over EUR 6 billion, approximately PLN 26 billion,” said Domański at a press conference.

“This money should reach us in the coming weeks, I hope that before the holidays” – emphasized the minister, who led the meeting on Friday in connection with the Polish presidency.

In total, the EU Council accepted the changes in KPO eight countries on Friday. In addition to Poland, they were also Belgium, Cyprus, Croatia, Italy, Lithuania, Malta and Slovenia.

There are two innovations with the creation of a fund. Thanks to him Poland will be able to spend money on defense after the end of the Reconstruction Fund in August 2026. The EC agreed – and Friday was approved by finance ministers – that for the implementation of the so -called Milowy stone was recognized just transferring money to the account of a special purpose company at Bank Gospodarstwa Krajowego.

The second issue concerns the transfer of EU funds for defense. Article 41 of the EU Treaty prohibits “expenses on operations affecting military or political and defense issues”. The EC, however, came to the conclusion that the KPO regulation itself does not provide for any special treatment of defense funds, and the money that Poland will move to the security and defense fund will not be allocated to military purposes, but the so -called double application.

“Security above all” – Domański wrote on one of the social platforms. “An additional PLN 26 billion will be allocated to the Special Defense and Safety Fund within the KPO” – he emphasized.

After receiving the funds, the fourth KPO search will begin, which aims to revise planned investments that may not be implemented on time. This year, Poland is also to submit a fourth payment application.

The first KPO revision was accepted by the EC in November 2023, and the second in July 2024 (PAP)

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