Poland fears Green Deal will downsize EU budget

Poland and its regional neighbours fear the EC's Wednesday proposed European Green Deal project will force cuts in cohesion and agricultural funding, PAP learnt from Polish diplomatic sources.

Poland and other Central and Eastern European countries are concerned about the costs of transforming their economies towards climate neutrality, and say the European Green Deal project offers no insight into how the changes are to be financed. The EC wants transition costs in fossil fuel-dependent economies to be covered from a Just Transition Mechanism funded by the European Investment Bank (EIB) and money earned on the free market.

Polish diplomats fear the mechanism may be financed from money from cohesion and agricultural funding cuts.

The European Council will attempt to find a compromise solution in the matter during a sitting in Brussels on Thursday. At the EU summit in June, Poland, Hungary, the Czech Republic and Estonia blocked the EC's climate neutrality project.