Biznes Fakty
Deputy Minister Jan Szyszko: the EC has given its consent to establish the Security and Defence Fund
The European Commission has authorized the creation of the Security and Defence Fund (FBiO), announced Deputy Minister of Funds and Regional Policy Jan Szyszko on Friday. He noted that the fund’s resources will be allocated, among other purposes, to enhance civil protection infrastructure and dual-use initiatives.
„Negotiations with the European Commission have concluded! We have received approval to establish the Security and Defense Fund from the KPO. (…) Two months ago, we committed to the FBiO, and today we are fulfilling that commitment,” Szyszko shared on the X platform.
Billions for security
He recalled that PLN 26 billion from the fund will be allocated for building civil protection infrastructure, such as shelters, wells, water supply and communication links, the expansion of Polish steelworks and the arms sector, as well as the construction and refurbishment of dual-use infrastructure—namely roads, tracks, landing areas, and airports. Additionally, funds will be invested in cybersecurity, which includes radars, safeguarding Polish data, and secure storage solutions.
Entry by Jan Szyszko XThe initial investment strategy for the Security and Defense Fund (FBiO), crafted by the FBiO Steering Committee, was submitted to the European Commission at the end of April this year. Last week, during formal discussions with the EC, Szyszko stated that the Commission did not reject any of the FBiO’s objectives. “A point of pride for us during these discussions is that funding should significantly benefit local governments and bolster the security of residents across Poland,” he emphasized. He also mentioned that on June 20 of this year, the Council of the European Union will convene to approve the revision of the Polish KPO, which includes the Security and Defense Fund. He indicated that this decision will ultimately conclude the KPO revision process.
Security and Defense Fund
The Security and Defense Fund will be composed of resources redirected from the KPO, specifically from the segment allocated for the green transformation of urban areas. This involves a modification introduced as part of the ongoing KPO revision. As previously reported by the ministry, the FBiO is expected to launch in the third quarter of 2025.
The Fund’s purpose is to enhance Poland’s defense and security capabilities. On March 26, the government passed a resolution via circulation to redirect PLN 26 billion to this fund under the KPO. The Ministry of Funds and Regional Policy will be the institution responsible for executing the investments, while the Steering Committee, which held its inaugural meeting at the beginning of April, will determine the Fund’s expenditures.
Funds within the fund will be disbursed as preferential, low-interest loans or partially redeemable capital investments, depending on the nature and location of the investments. In addition to KPO resources, the fund may receive contributions from other sources, including cohesion policy funds. The operational management of the fund will fall under the purview of the Bank Gospodarstwa Krajowego.
The beneficiaries of the FBiO may include, among others, local governmental bodies, enterprises (including State Treasury companies), and academic institutions and their consortia.
KPO
The National Recovery and Resilience Plan (KPO) is designed to fortify the Polish economy. Through this program, Poland receives funding in the form of non-repayable grants and favorable loans—amounting to PLN 67 billion to date. The KPO revision was approved by the government at the end of January this year.
