“There is progress on the KPO.” New information after Morawiecki’s meeting with von der Leyen

According to a Polish Radio source, the conversation on the release of funds for the Polish National Reconstruction Plan brought “some progress”. – There is no final yet, but we are a little closer. Take it easy and step by step “- said our informant. As he added, Poland is now waiting for a move from the European Commission,” which will show whether there is a real chance for an agreement “- there is some progress on the National Reconstruction Plan – indicated.

National Reconstruction Plan – new information after the meeting in Brussels

Ursula von der Leyen said after the meeting that both sides shared the goal of economic recovery in Poland and the entire European Union. “Investments and reforms are key,” said the President of the Commission.

The meeting of the Polish prime minister with the head of the Commission also concerned the current security situation in the east, including the finalization of sanctions against Russia and the protection of borders with Belarus. – The prime minister informed Ursula von der Leyen how serious the situation is – reported a diplomatic source.

In turn, Morawiecki himself, after the meeting in Brussels, said that “there is not much to an agreement between Poland and the European Commission on the National Reconstruction Plan. – There is faith, although there is no certainty that we will be able to reach an agreement with the European Commission in the coming weeks,” he said, adding that there was “5 percent left” to be agreed.

On the other hand, the president of the European Commission, Ursula von der Leyen, in a Twitter post, emphasized the unity of Warsaw and Brussels in supporting Ukraine and calling on Russia to de-escalate tensions. “Diplomacy is the only answer. Our reaction will be quick and strong in the event of further aggression” – wrote the head of the European Commission.

KPO – what about the conditionality mechanism? How much can Poland lose?

Most countries have already received funds from the KPO, but Poland is not one of them. The Union makes the receipt of the fund dependent on the rule of law mechanism, which Poland does not want to recognize. First of all, the community wants Poland to abolish the Disciplinary Chamber of the Supreme Court. Poland’s position on the superiority of the national law over the EU law is also problematic.

From the Reconstruction Fund alone, Poland may lose EUR 58 billion, i.e. over PLN 260 billion. The source of money is the EU Reconstruction Fund, established in response to the COVID-19 pandemic. Within the above amount, approximately EUR 23.9 billion are non-returnable subsidies. Over EUR 34.2 billion are low-interest loans. Funds from the KPO are to be used, inter alia, by to reform the labor market, support for housing, change the financing of hospitals, or introduce new types of enterprises in Poland.

and ruled that the so-called the conditionality mechanism is in line with the Treaties. This verdict may mean that we will not receive money from the KPO, and the funds from the European Union fund are also at risk.

– The EC may suspend the payment of virtually all funds for Poland – said Sylwia Gregorczyk-Abram from the Free Courts Initiative before the verdict was issued. Already in December, all EU Member States except Poland and Hungary, which considered the principle “inconsistent with the treaties”, expressed their consent to the funds flowing to the countries concerned subject to compliance with the rule of law. In December last year, the advocate general of the CJEU stated that the complaints of the governments in Warsaw and Budapest were unfounded and should be dismissed. However, the position of the Ombudsman was not binding on the Court.