On Tuesday, the European Commission agreed to the revised National Recovery Plan. Poland will receive an advance exceeding EUR 5 billion, which translates into about PLN 22 billion, from the Fund for Reconstruction and Improvement of Resistance. These measures are not part of unblocked funds from KPO, which inactive depend on compliance with the regulation of law requirements in Poland. These are additional funds for energy independency from Russia. Matthew Morawiecki's government applied in August.
The European Council has 4 weeks to support the changes. If the Council supports the Commission proposal, the next step will be to sign the agreement with the Polish Government. This must happen by the end of this year in order to be able to pay the advance. Half of this amount may be paid immediately after the contract is signed and the another half may be paid within a year.
The European Commission has present issued a affirmative opinion on the revised KPO. This includes additional loans of EUR 23 billion, which Poland requested on 31 March and an additional EUR 2.76 billion of subsidies from REPowerEU, which were programmed in the revised KPO sent to the EC on 31 August
— Janusz Piechociński (@Piechocinski) November 21, 2023
Three Milestones
Following the launch of the REPowerEU initiative, all associate States were required to present updated plans explaining how they intend to usage funds for energy purposes to reduce dependence on Russian fossil fuel supply. Poland met this request by making the essential modifications, as explained by Valdis Dombrovskis, Vice-President of the European Commission, during the conference. However, he added that 3 key issues related to strengthening the independency of the judiciary remained unchanged.
The advance represents only a tiny part of the funds of the full KPO, whose budget amounts to almost EUR 60 billion. Almost EUR 55 billion are inactive frozen, due to the fact that Poland has to meet alleged milestones to run payments. 2 concern the improvement of the judiciary and 1 implement the Arachne IT tool, which helps associate States to combat fraud. Poland has not yet met these conditions.
Don't be late.
According to the Ministry of Funds and Regional Policy, the advance payment is not dependent on the fulfilment of milestones. The task of the Polish government is only to sign a financial and debt agreement before the end of this year. Compliance with the deadline is crucial because, as the advanced Voltage portal reminds us, in 2021 Poland was late with the first KPO, which prevented the payment of billions of euros as an advance from the Instrument for Reconstruction and Improvement of Immunity.
This decision can be yet confirmed and approved by the Finance Ministers of the European Union on 8 December erstwhile the economical and Financial Affairs Council is scheduled to meet. Poland will receive a full of EUR 551 million from the grant fund and EUR 4.5 billion from fresh loans for energy independence. On the another hand, investments financed by KPO will should be completed and settled by the end of 2026.
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