Jan Strupczewski & Marek Strzelecki

WARSAW/BRUSSELS – The European Commission might soon approve Poland’s coronavirus restoration plan. However, Warsaw may only be eligible for billions of euros in EU funding months later if it fulfills EU rule-of-law requirements and implements any other reforms agreed upon, officials from the EU said.

Fund for post-pandemic recovery, 800 billion Euros ($880 Billion) of the 27-nation bloc will fund “green” economic and digital transformations in its member countries between 2021-2026.

Once national spending plans are approved by both the EU executive and the finance ministers of the bloc, countries will be able to receive their cash.

Poland’s plan to receive 23.9 billion Euros in grants and 12.1 Billion in loans at very affordable rates under the Polish Plan has been stalled in the Commission’s docket since May 2021, due to allegations that the ruling eurosceptic PiS has been subjecting Poland’s courts political control.

Release of billions through the recovery fund depends on the countries applying the annual Commission recommendations for reforms. In Poland’s case, they say that Poland must address EU-rule-of-law issues.

“There are some rule of law questions that need to addressed and have also been addressed in a European Court of Justice decision. Of course, we must see how the European Court of Justice judgment is being applied,” Valdis Dombrovskis, Vice President of Commission, said this week.

It’s a very fundamental issue on respecting the rule of law. We are currently discussing it, and we have been in positive contact with Polish authorities. “I hope that we can make progress on it quite quickly,” he stated.

After Russia invaded Ukraine in April, which has caused more than 2,000,000 refugees to flee into Poland, Warsaw has stated that there should not be any other conflict.

A top court of the EU has declared that the creation of a disciplinary body in Poland’s supreme court by politicians was illegal and should be disbanded. Warsaw claims that this is false and its court reform aims to improve the efficiency and fairness of the system.

Poland’s ruling party is refusing to dissolve the chamber. This has impeded the Commission from approving the recovery plan. A senior EU official stated that approval might be forthcoming soon but no funds would immediately be disbursed.

“The Polish National Recovery Plan will be approved and the Commission will grant money to the Polish Government if they pass a law disbanding the disciplinary Chamber and reinstating judges that were suspended illegally, if this happens, and of course, if other milestones or targets are met,” said a senior EU official who declined to be identified.

Warsaw, just like other countries, would have been eligible to receive 13% of total cash, which is 3.1 billion euro in grants.

Last year, however, the possibility of receiving the prepayment — which is money that EU countries receive before they begin the reforms agreed to transform their economy — was eliminated.

The approval of any EU payment to Poland now will mean that payments can be made only if Warsaw achieves the set targets. This includes likely addressing EU law and rule concerns.

It’s not an easy balance act. The rule of law cannot be compromised for a false sense of unity when there is an armed conflict nearby. The Commission isn’t going to continue blocking funds because the majority need to be approved in this year’s fiscal year. Another source with knowledge of Commission deliberations said the same.

($1 = 0.9076 euros)