EU's approval of recovery plan to release billions for Poland says PM

Maciej Kulczyński/PAP

Mateusz Morawiecki, the Polish prime minister, has said that the green light given by EU member states to Poland's National Recovery Plan (KPO) is a big step towards the pay out of billions of zlotys to the country.

Poland's recovery plan was approved at the meeting of the bloc's finance ministers in Luxembourg on Friday.

Morawiecki said that this decision "should please all Poles," as the KPO largely consists of grants and low-interest loans.

"This is a joint debt of the richest region in the world, that is the EU, and the EU is responsible for it, and the EU will start repayment for 20-30 years beginning from 2028," he added.

Morawiecki noted that the so-called milestones of the KPO that "arouse anxiety" are "indicators or targets which are part of a procedure that applies to all countries joining the EU recovery plan.

"We have a well-written budget and we are fully ready to implement these milestones," he said.

"It will not be at the expense of Polish interests at any point. It is exactly the opposite - this reasonable use of funds is in our best national interest," Morawiecki added.

"The world has been invaded, as I often say, by the four horsemen of the Apocalypse: plague, war, the energy and food crises, and finally global 'putinflation,'" Morawiecki said. "In such conditions, acting alone would cost us much more. Participation in the KPO is therefore in the best interest of Poles."

According to the Polish prime minister, the KPO is "Polish raison d'etat" and Poland's "new Marshall plan", giving the country a historic chance to overcome our "lagging behind" Western Europe.

On June 1, the European Commission endorsed the implementation of the KPO, saying that Poland's plan contained the relevant milestones and targets associated with the necessary reforms and investments.

Warsaw is set to get EUR 23.9 billion in grants and EUR 11.5 billion in loans from the EU's Recovery and Resilience Facility (RFF) set up to help the recovery of the bloc's economies after the crisis caused by the Covid-19 pandemic.

However, before any disbursement under the RRF can be made, Poland needs to demonstrate that the milestones related to the independence of the judiciary are fulfilled.