It's time to return to Cold War-era defense spending, says Poland's president

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Europe must return to 'Cold War-era defense expenditure policies,' says Polish President

It's "paramount" that Europe returns to Cold War-era defense spending policies as the war in Ukraine continues, Polish President Andrzej Duda told CNBC on Wednesday.

The president warned the security situation in Europe has "drastically changed" since 2014, when NATO's defense expenditure rules were first introduced.

"There's hardly any difference between Soviet imperialism and Putin's version. It's about expansionism, gaining territory, dominating other countries and enlarging the Russia sphere of influence," he told CNBC's Steve Sedgwick on the sidelines of the World Economic Forum in Davos, Switzerland.

"So today, if we want to defend against this – and us Poles decisively do – we're spending close to 5% of GDP on defense this year. We're aware that we have to modernize our armed forces, we have to be strong and provide a real deterrent to keep Russia aggression at bay," he said according to a CNBC translation.

Duda also called on other NATO members to boost their defense budgets in solidarity. "Percentages themselves won't scare off Russia," but if the money goes towards expanding military capabilities, Russia could be defeated, he said.

"I believe that if NATO members step up to the plate and they succeed in universally modernizing their armed forces with that 3% of GDP, at least, then they'll be able to attain such defense capabilities to render any Russian attacks futile."

Poland, which borders Ukraine to the west, has been a key supporter of Kyiv throughout the war, accepting thousands of civilians fleeing the conflict and donating military aid, including tanks and armored personnel carriers. The total amount of assistance from Poland to the region amounts to 3.23 billion euros (or $3.37 billion), according to data from the presidential office.

Duda on Wednesday reiterated that Russia "must be repelled" and order restored.

"We're saying now that neither side can win outright, so we have to support Ukraine as much as possible so that Russia is unable to defeat it, so that Ukraine can drive out the Russian army from as much of its occupied territory as possible," he said.

Watch CNBC's full interview with Poland's Finance Minister Andrzej Domański

As a member of NATO, Poland has also earned itself some immunity from criticism from the U.S. for spending the most money, as a percentage of GDP, on defense.

NATO estimates suggest that Poland spent 4.12% of GDP on defense in 2024. The U.S., in third place after Estonia, spent 3.38% of GDP on defense expenditure.

Polish Finance Minister Andrzej Domański told CNBC earlier Wednesday that Poland's relations with Washington were "very, very good, and we are buying lots of U.S. military equipment, tanks, fighter jets. Actually, you name it, we buy it."

"But, as [the] European Union, of course we must remain united in our relations with the U.S. It's of course, the most important for the EU to focus on bringing back competitiveness back to Europe," he added.

"I do believe this is the best answer for any possible tension with the U.S., and we know how to do it, and we will do it step by step. And during the Polish presidency [the six-month rotating presidency of the Council of the European Union], we will put competitiveness at the very heart of the discussion," Domanski added.

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