As part of the review of the National Reconstruction Plan, the government has proposed to the European Commission the creation of a safety and Defence Fund to which nearly EUR 6 billion are expected. As the Deputy Minister of Funds Jan Szyszko explained in an interview with PAP, it is planned to establish a peculiar intent company associated with Bank Gospodarstwa Krajowego, which will enable Poland to invest funds from KPO besides after its formal completion in August 2026. The Minister of Funds and Regional Policy, Katarzyna Pełczyńska-Nałęcz, informed about the approval of the changes, stating the decision as a major success.
It wasn't easy, but it is! We have a preliminary agreement with the Commission to extend by at least 3 months, i.e. until November 2026 the clearing of investments in KPO. Final confirmation on the first days of June – wrote the minister on platform X.
Alternative solution
The solution adopted by Poland may become a model for another countries that fear that they will not be able to usage funds from the KPO before the end of August 2026. Although many countries are in favour of a redeployment, specified a step would require the unanimous approval of all EU members, including Hungary, whose access to KPO funds is presently blocked. Therefore, the revision of the plan following the Polish approach may be a viable alternative.
Investment in security
The recently created account will amount to over EUR 7 billion, which will enable the mobilisation of the safety and Defence Fund. The available funds will be allocated to investments in the field of security, but will not be utilized for the acquisition of weapons. According to the government's announcements, the fund will finance, among others, the construction of shelters, wells, water supply and communication networks, as well as the improvement of the national defence and steel industry. Double-use infrastructure projects specified as roads, railway lines, landing sites or airports will besides be financed. Part of the backing will be utilized to strengthen cybersecurity.
KPO was developed to strengthen the Polish economy. It includes 57 investments and 54 reforms, with a full value of EUR 59.8 billion for Poland – of which 25.27 billion are non-refundable grants and 34.54 billion are preferential loans. According to European Commission data, Poland has so far implemented around 25% of planned reforms and investments.
