EU funds will boost Polish GDP growth - Moody's

The inflow of regular and additional EU funding will help boost Poland's GDP growth in the years 2021-27, the Moody's rating agency said on Tuesday.

Moody's said regular EU funding coupled with aid from the EU's Recovery Fund for pandemic-hit economies could speed up GDP growth in Poland by 0.2 percentage points and bring down the country's public debt by a similar percentage.

According to Moody's, Poland is among the EU members where the impact of EU funding on GDP growth and the public debt will be lowest. The agency said that it will be highest in Croatia, Bulgaria and Romania.

Moody's observed that the EU's new regulations tying funding to observance of the rule of law could hinder the inflow of EU funding to Poland and Hungary, who are in a rule of law dispute with the European Commission.

Under the Recovery Fund Poland could receive about EUR 58.1 billion in grants and loans.