Economy, Europe

EU commissioner upbeat Poland’s blocked EU funds could be released soon

Warsaw’s struggle with Brussels over allegations of democratic backsliding has hit Poland’s fiscal coffers, with elections in September it could prove crucial

Jo Harper  | 24.06.2023 - Update : 24.06.2023
EU commissioner upbeat Poland’s blocked EU funds could be released soon

WARSAW

Poland and the European Commission should arrive at an agreement that would unblock withheld EU funds soon, according to a senior official from the bloc.

“I hope that a general agreement on the remaining issues will be reached very soon. So, we can have normal functioning cohesion funding,” Elisa Ferreira, EU commissioner for cohesion and reforms, told Anadolu.

The EU blocked €35.4 billion ($39 billion) in coronavirus recovery funds in a spat over allegations Poland has broken the bloc's rule of law stipulations. In 2022, it set milestones on judicial independence and green energy to assess if Poland was abiding by EU demands.

The commission also fined Warsaw €1 million a day after Poland refused to abide by a previous ruling from the European Court of Justice (ECJ), later reducing it to €500,000 daily after Poland’s parliament in February passed two pieces of legislation the government hoped would unblock the funds. The most important of the two would see the Supreme Administrative Court dealing with disciplinary cases of judges and abolishing the controversial chamber of the Supreme Court

But the ECJ ruled earlier this month that Poland violated EU law with the 2019 judicial reforms and upheld a decision by the Commission to fine Poland.

The ruling came as parliamentary elections loom later this year.

Moves to unblock cash

The other key milestone is amendments to Poland’s wind turbine act, which blocks onshore wind farm development in Poland.

Critics contend that existing rules have been blocking land for investment in new turbines since 2016, when the ruling PiS party ordered that a turbine should be a minimum distance of 10 times its height from residential buildings.

The amendment will cut potential onshore wind investments by 60% - 70%, according to the Polish Wind Energy Association.

“Now of course there is something more substantial and that touches upon those conditions vis-a-vis European money. And this is being followed by colleagues of mine,” said Ferreira. “We have had a very constructive dialogue in particular with (Polish Minister of Funds and Regional Policy Grzegorz) Puda,” she added.

Russian commission

Meanwhile, the EU in early June launched legal action against Warsaw concerning a law to set up a commission investigating cases of "Russian influence" inside Poland.

The government said the Commission is needed to bolster Poland’s "cohesion and internal security," while critics allege it will be deployed to target opposition politicians in the period before the parliamentary election later this year.

Approved by Poland's parliament in May, the commission will look into alleged Russian interference between 2007 and 2022.

It has been criticized by the EU and US, who argue its powers could be used to interfere with elections and Poland later watered down the plans, with lawmakers voting to curtail the Committee's power to ban people for up to 10 years. The bill amending it now goes to the Senate.

Poland's opposition calls the law "Lex Tusk," arguing it was designed to discredit the leader of the main opposition party and former Prime Minister Donald Tusk.

Asked if parliamentary elections in September would alter the negotiating timetable, Ferreira said: “This is a Polish affair. We just have to respect the outcome.”

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