Poland has finally received its first payment of €6.3 billion from the European Union’s recovery fund after a long wait. The release of the funds was delayed due to concerns about a lack of judicial independence and democratic backsliding in the country under the Law and Justice (PiS) party. The PiS administration had implemented controversial reforms that were seen as undermining the independence of the judiciary, leading to a standoff between Poland and the EU. However, after Donald Tusk took over as Prime Minister and began reversing some of these reforms, the EU unblocked the funds in late February.
The release of the funds was contingent on Poland meeting two overarching conditions related to the judiciary, including restoring judicial independence and respecting the primacy of EU law. Donald Tusk’s government presented a nine-bill “action plan” aimed at achieving these goals, and the European Commission deemed these efforts sufficient to allow the gradual disbursement of funds to Poland. The initial payment of €6.3 billion consists of both loans and grants, earmarked for various purposes such as diversifying energy supplies, combating air pollution, and modernizing agricultural production. Poland is expected to submit two more requests this year to receive an additional €23 billion, with all payouts subject to the completion of investments and projects.
The current payment is considered the largest transfer from the EU in the history of Poland’s membership. European Commission President Ursula von der Leyen hailed the release of funds as an important day for Poland, emphasizing that this is just the beginning. Donald Tusk expressed satisfaction with the cooperation between Poland and the EU, highlighting that good collaboration brings positive results. Poland’s Minister for Regional Policy, Katarzyna Pełczyńska, noted the significance of the sum received and the potential impact it could have on the country’s development.
The process of unlocking the funds involved the reversal of controversial judicial reforms introduced by the PiS party, which increased political control over the judiciary and raised concerns about the rule of law in Poland. The European Court of Justice had ruled against these reforms, leading to a conflict between Brussels and Warsaw. The release of funds was seen as a positive step towards resolving this issue and moving towards greater judicial independence and adherence to EU law in Poland. The funds are intended to support various projects and investments that will contribute to Poland’s economic development and modernization.
President Andrzej Duda, who is politically aligned with the PiS party, will need to approve the nine bills under the “action plan” to continue progress towards meeting the EU’s conditions for fund disbursement. There is a possibility that further payments could be paused if there are setbacks in implementing the judicial reforms outlined in the action plan. Despite some criticisms from former PiS officials regarding the EU’s handling of the funds, the release of the initial €6.3 billion payment marks a significant milestone for Poland and demonstrates the importance of upholding democratic principles and the rule of law in the country.
