The Prime Minister and the President on the plan to rebuild Europe after the pandemic

After Spain and Italy, Poland will be the third net beneficiary of the EU economic recovery fund after the crisis triggered by Covid-19. According to the proposal of the European Commission, the fund will amount to EUR 750 billion, of which almost EUR 64 billion will go to Poland. These will be additional resources alongside the new EU budget for 2021-2027, which is to total 1.1 EUR trillion.

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Photo: Krystian Maj / Chancellery of the Prime Minister of Poland

We want Europe to become great again and be a global player in the world emphasised Prime Minister Mateusz Morawiecki during his joint speech with President Andrzej Duda. The EU Recovery Fund, combined with the EU budget, will be a great financial stimulus that will provide a perspective for economic development of Europe and Poland indicated the head of the government. As he added, the European funds will complement national programmes related to the aid to the Polish economy, namely the Anti-Crisis and Financial Shields.

Mateusz Morawiecki stressed that the proposal of the European Commission is the result of a hard-bargaining tactic, in which President Andrzej Duda also participated. Together with the President, we are also aiming to strengthen Central European formats in EU funds, such as the Visegrad Group and the Three Seas Initiative said the Prime Minister.

EU economic recovery fund after the pandemic

Under the EU proposal, the new fund amounting to EUR 750 billion is intended to help the economic recovery of the EU after the crisis triggered by Covid-19. It will be financed through loans taken by the European Commission on the financial markets and by long-term repayments in the years 2028-2058.

The Polish requirement that the EU economic recovery fund should be divided into two elements:

  • a grant of EUR 500 billion
  • a loan of EUR 250 billion

was also fulfilled.

As a result, resources will be available on favourable terms for the implementation of climate, infrastructure, energy and IT projects, as well as the modernisation of schools and health services.

This week, the government is also beginning works on the National Recovery Plan, which will include specific proposals for using these resources.

More money for cohesion policy, agriculture and energy transition

In the proposal of the European Commission, there has been a significant increase in the most important areas for Poland. This concerns the use of the cohesion policy in the fight against the effects of the pandemic, where the budget is to be increased by EUR 55 billion and the agricultural policy, which is to be increased by EUR 24 billion (compared to the EC proposal of 2018). Poland will receive considerable resources from this pool.

The Just Transition Fund for the implementation of projects related to energy efficiency and renewable energy sources will also be increased up to EUR 40 billion.

Negotiations on the new Community budget will be held during the EU summit on 18 and 19 June.

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