Poland backs higher EU budget, EU Reconstruction Fund

During the summit, the Polish prime minister pointed out "the need to mobilise loan funds from the market on the principles indicated by the European Commission in the Reconstruction Plan" and "the need for new funds in the EU budget to be allocated for non-repayable aid," the statement said citing Morawiecki. Rafał Guz/PAP

Polish PM Mateusz Morawiecki supports the concept of an EU Reconstruction Fund and increasing the EU budget during the Thursday summit of the European Council aimed at bridging divisions over the bloc’s financial response to the pandemic, PM's Office has said in a statement.

EU heads met for an online debate for the fourth time since the outbreak of the pandemic to discuss how to respond to the crisis caused by the coronavirus.

During the four-hour video conference, EU leaders approved the launch of loan instruments, agreed by EU finance ministers, worth EUR 540 billion to help combat the economic crisis and obliged the European Commission to prepare a proposal for the creation of a European Reconstruction Fund to support the European Union following the crisis caused by COVID-19, the statement read.

During the summit, the Polish prime minister pointed out "the need to mobilise loan funds from the market on the principles indicated by the European Commission in the Reconstruction Plan" and "the need for new funds in the EU budget to be allocated for non-repayable aid," the statement said citing Morawiecki.

"In addition, the Polish position stressed that the Fund should be open to all Member States," according to the statement. "At the same time, Poland advocates a more ambitious shape of the EU's multiannual budget, in particular cohesion policy, which, through its investment nature, can be one of the tools to overcome the crisis related to the epidemic," the statement read.