Poland to Receive €5.1 Billion Boost from EU to Break Away from Russian Fossil Fuels
Poland will receive 5.1 billion euros in advance payments from the EU's REPowerEU scheme, alongside additional funding from the COVID-19 recovery fund, to shift away from Russian fossil fuels. However, the release of these funds depends on the country implementing rule of law reforms criticized for undermining judicial independence.
Poland is set to receive 5.1 billion euros ($5.56 billion) in advance payments as part of the European Union's REPowerEU scheme, which aims to promote the shift away from Russian fossil fuels. This funding is in addition to the money that Warsaw had originally requested under the EU's COVID-19 recovery fund. In total, Poland is expected to receive 59.8 billion euros, with 35.4 billion euros of grants and loans currently frozen until the country implements rule of law reforms that have been criticized for undermining the independence of its judiciary system.
Unlike the frozen funds, the REPowerEU funds are not contingent on the implementation of any legal reforms. However, concerns over the rule of law have also been impeding access to 76.5 billion euros of EU cohesion funds, which are aimed at improving living standards in poorer regions. Access to these funds can be unblocked at any time as part of the EU's seven-year budget. The European Council, comprised of EU member states, has four weeks to endorse the European Commission's assessment, paving the way for Poland to receive the pre-financing.
Poland has been embroiled in various disputes with the European Union over democratic standards since the nationalist Law and Justice (PiS) party came to power in 2015. However, in the recent parliamentary election on October 15, an alliance of pro-European Union parties won a majority and are expected to form a new government. They have pledged to improve relations with Brussels and unfreeze the blocked funds. These developments are part of the EU's broader efforts to reduce dependence on Russian energy supplies and promote the diversification of green energy sources.
The funds will support Poland's transition towards cleaner energy options and contribute to the country's economic recovery from the COVID-19 pandemic. The release of the funds will depend on EU finance ministers confirming the European Commission's recommendation, which is expected to occur at their meeting on December 8. The funds will be disbursed in two equal instalments, with the second payment expected within a year. Poland's incoming government, led by Donald Tusk, former President of the European Council, has committed to restoring the rule of law and strengthening ties with the EU.
