Slightly over 2/5 of reinforcing purchases (41 percent) in the years 2024-2035 will be physically realized in Poland, and results from the estimates contained in the Deloitte report. In financial terms, this share may be even lower, because a large part of the equipment will be built on foreign licenses or based on imported components, as in the case of K2 tanks, K9 cannabis or “Rosomak” armored personnel carriers. This purchasing structure limits the development of proprietary technological competences, and thus weakens the ability of domestic companies to scale operations.
A new cooperation model needed
To avoid losing control over the scale of investment, countries Central Europe They should define a new model of cooperation between the government, the state industry and private capital, according to the report “New security architecture: the role of the state and industry in Central Europe” of the consulting company Deloitte.
Development barriers
“The countries of the region are increasing the defensive budgets at an unknown pace since the end of the Cold War. The Polish government only announces an increase in expenditure to 4.7% of GDP this year, and similar trends can also be seen in the Baltic countries, Romania or the Czech Republic. However, the rapid increase in expenditure does not automatically translate into increased military potential by the fact that the region is still measured with three serious barriers: chronic underfunding of the arms industry, lack of production scale and limited access to intellectual property” – we read in a message.
“We do not have several decades to carry out this transformation – War in Ukraine And the aggressive policy of Russia leave no illusions. We found ourselves in a situation where it is necessary not only to strengthen the defense capabilities, but in many areas their complete rebuilding. What’s more, this must occur at a pace and at the financing scale, to which the arms sector in our part of Europe has not yet been accustomed. This is a huge challenge that requires joint effort – governments, state and private enterprises. The former should act as a strategist, integrator and investor, while State Treasury companies should be ready to quickly increase their capabilities and effectively cooperate with the private sector, “said the partner, the leader of the defense sector, Deloitte in Central Europe, Mariusz Ustyjanczuk, quoted in the announcement.
The role of state -owned enterprises
State enterprises occupy a unique place in the arms sector: they implement government strategies and are an integral element of the defense ecosystem. Currently, however, they are not ready to absorb a sudden surge of financing. In order for them to be able to act as an innovation motor, it is necessary to adapt to modern market conditions – both operational and strategically. This includes Realistic assessment of resources, adaptation to strategic goals (by developing new technologies and cooperation with other entities), improvement of operational efficiency, as well as confirmation of the value of initiatives. After a successful transformation, their task should be to develop domestic resources, ensure long -term stability even in the case of irregular demand, security supply chains and stimulating further development, emphasized.
How to build a strong arms industry in the region?
Revitalization of the defense industry in Central Europe This is a generational challenge, which requires not only long -term strategy at the level of states, but also the close cooperation of the public and private sectors. At the same time, the strict regional cooperation under NATO and the European Union will be needed, which will avoid duplication of investments and an effective division of competences between Member States. In the context of Poland’s expenditure planned for defense of PLN 1.9 trillion by 2035, it is crucial that part of the investment is designed in an opening way to open the market to private entities and allowing to increase the efficiency of spending public funds.
“Thanks to the use of PPP models or the so -called public leverage projects, it is possible to engage private companies in the implementation of the state’s defense goals. This applies to, among others, the construction and maintenance of training centers, logistics centers or IT infrastructure, where the private sector can finance the project and then provide services for the state in exchange for long -term fees. public procurement enables a wider group of companies access to tenders, promoting competition and innovation.
“Lack of stability and a sense of security may discourage investors To place capital in new infrastructure or development of enterprises, which is why long -term investments in the defensive sector should go hand in hand with a thoughtful strategy. However, the overarching goal of such expenses is not to drive economic growth, but to prevent conflict, which always has serious economic consequences. It is important that the money allocated to the modernization of the army not only increases our defense skills, but also supports the development of national industry and innovation. If the expenses are wisely divided between domestic and foreign entities, we can count on technology transfer and an increase in the potential for further development of Polish companies ” – concluded the partner, leader of the Sustainability & Climate portfolio in Poland and Central Europe in Deloitte Julia Patorska.
(ISBnews)
